Lawsuits May Proceed Against Foreign Foreign Defendants Under Commercial Activity Exception of FSIA

Foreign Sovereign Immunities Act of 1976 ("FSIA") provides that a foreign state is immune for public acts from being sued in U.S. courts. The "commercial activity" exception displaces that immunity if the foreign state or agent conducts "a regular course of commercial conduct or a particular commercial transaction or act" that has "substantial contact" with the U.S.

In Egypt v. Lasheen, et al., 603 F.3d 1166 (9th Cir. 2010), the court found the Egyptian government liable by applying the "commercial activity" exception because it directly contracted with the insurance plan administrator, signed documents, and maintained an office in the U.S. This is an important consideration for foreign governments and its agents when analyzing potential liabilities that can be imposed against them in U.S. courts should a dispute arise.

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