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- NOTICE: This opinion is subject to formal revision before publication in the
- preliminary print of the United States Reports. Readers are requested to
- notify the Reporter of Decisions, Supreme Court of the United States, Wash-
- ington, D.C. 20543, of any typographical or other formal errors, in order that
- corrections may be made before the preliminary print goes to press.
- SUPREME COURT OF THE UNITED STATES
- --------
- No. 91-522
- --------
- SAUDI ARABIA, KING FAISAL SPECIALIST HOSPI-
- TAL and ROYSPEC, PETITIONERS v.
- SCOTT NELSON et ux.
- on writ of certiorari to the united states court
- of appeals for the eleventh circuit
- [March 23, 1993]
-
- Justice Souter delivered the opinion of the Court.
- The Foreign Sovereign Immunities Act of 1976 entitles
- foreign states to immunity from the jurisdiction of courts
- in the United States, 28 U. S. C. 1604, subject to certain
- enumerated exceptions. 1605. One is that a foreign
- state shall not be immune in any case -in which the
- action is based upon a commercial activity carried on in
- the United States by the foreign state.- 1605(a)(2). We
- hold that respondents' action alleging personal injury
- resulting from unlawful detention and torture by the
- Saudi Government is not -based upon a commercial
- activity- within the meaning of the Act, which consequent-
- ly confers no jurisdiction over respondents' suit.
-
- I
- Because this case comes to us on a motion to dismiss
- the complaint, we assume that we have truthful factual
- allegations before us, see United States v. Gaubert, 499
- U. S. ___, ___ (1991), though many of those allegations
- are subject to dispute. See Brief for Petitioners 3, n. 3;
- see also n. 1, infra. Petitioner Kingdom of Saudi Arabia
- owns and operates petitioner King Faisal Specialist
- Hospital in Riyadh, as well as petitioner Royspec Purchas-
- ing Services, the Hospital's corporate purchasing agent in
- the United States. App. 91. The Hospital Corporation of
- America, Ltd. (HCA), an independent corporation existing
- under the laws of the Cayman Islands, recruits Americans
- for employment at the Hospital under an agreement
- signed with Saudi Arabia in 1973. Id., at 73.
- In its recruitment effort, HCA placed an advertisement
- in a trade periodical seeking applications for a position as
- a monitoring systems engineer at the Hospital. The
- advertisement drew the attention of respondent Scott
- Nelson in September 1983, while Nelson was in the
- United States. After interviewing for the position in
- Saudi Arabia, Nelson returned to the United States, where
- he signed an employment contract with the Hospital, id.,
- at 4, satisfied personnel processing requirements, and
- attended an orientation session that HCA conducted for
- Hospital employees. In the course of that program, HCA
- identified Royspec as the point of contact in the United
- States for family members who might wish to reach
- Nelson in an emergency. Id., at 33.
- In December 1983, Nelson went to Saudi Arabia and
- began work at the Hospital, monitoring all -facilities,
- equipment, utilities and maintenance systems to insure
- the safety of patients, hospital staff, and others.- Id., at
- 4. He did his job without significant incident until March
- 1984, when he discovered safety defects in the Hospital's
- oxygen and nitrous oxide lines that posed fire hazards and
- otherwise endangered patients' lives. Id., at 57-58. Over
- a period of several months, Nelson repeatedly advised
- Hospital officials of the safety defects and reported the
- defects to a Saudi Government commission as well. Id.,
- at 4-5. Hospital officials instructed Nelson to ignore the
- problems. Id., at 58.
- The Hospital's response to Nelson's reports changed,
- however, on September 27, 1984, when certain Hospital
- employees summoned him to the Hospital's security office
- where agents of the Saudi Government arrested him.
- The agents transported Nelson to a jail cell, in which they
- -shackled, tortured and bea[t]- him, id., at 5, and kept
- him four days without food. Id., at 59. Although Nelson
- did not understand Arabic, Government agents forced him
- to sign a statement written in that language, the content
- of which he did not know; a Hospital employee who was
- supposed to act as Nelson's interpreter advised him to
- sign -anything- the agents gave him to avoid further
- beatings. Ibid. Two days later, Government agents
- transferred Nelson to the Al Sijan Prison -to await trial
- on unknown charges.- Ibid.
- At the Prison, Nelson was confined in an overcrowded
- cell area infested with rats, where he had to fight other
- prisoners for food and from which he was taken only once
- a week for fresh air and exercise. Ibid. Although police
- interrogators repeatedly questioned him in Arabic, id., at
- 5, Nelson did not learn the nature of the charges, if any,
- against him. Ibid. For several days, the Saudi Govern-
- ment failed to advise Nelson's family of his whereabouts,
- though a Saudi official eventually told Nelson's wife,
- respondent Vivian Nelson, that he could arrange for her
- husband's release if she provided sexual favors. Ibid.
- Although officials from the United States Embassy
- visited Nelson twice during his detention, they concluded
- that his allegations of Saudi mistreatment were -not
- credible- and made no protest to Saudi authorities. Id.,
- at 64. It was only at the personal request of a United
- States Senator that the Saudi Government released
- Nelson, 39 days after his arrest, on November 5, 1984.
- Id., at 60. Seven days later, after failing to convince him
- to return to work at the Hospital, the Saudi Government
- allowed Nelson to leave the country. Id., at 60-61.
- In 1988, Nelson and his wife filed this action against
- petitioners in the United States District Court for the
- Southern District of Florida seeking damages for personal
- injury. The Nelsons' complaint sets out 16 causes of
- action, which fall into three categories. Counts II through
- VII and counts X, XI, XIV, and XV allege that petitioners
- committed various intentional torts, including battery,
- unlawful detainment, wrongful arrest and imprisonment,
- false imprisonment, inhuman torture, disruption of normal
- family life, and infliction of mental anguish. Id., at 6-11,
- 15, 19-20. Counts I, IX, and XIII charge petitioners with
- negligently failing to warn Nelson of otherwise undisclosed
- dangers of his employment, namely, that if he attempted
- to report safety hazards the Hospital would likely retaliate
- against him and the Saudi Government might detain and
- physically abuse him without legal cause. Id., at 5-6, 14,
- 18-19. Finally, counts VIII, XII, and XVI allege that
- Vivian Nelson sustained derivative injury resulting from
- petitioners' actions. Id., at 11-12, 16, 20. Presumably
- because the employment contract provided that Saudi
- courts would have exclusive jurisdiction over claims for
- breach of contract, id., at 47, the Nelsons raised no such
- matters.
- The District Court dismissed for lack of subject-matter
- jurisdiction under the Foreign Sovereign Immunities Act
- of 1976, 28 U. S. C. 1330, 1602 et seq. It rejected the
- Nelsons' argument that jurisdiction existed, under the first
- clause of 1605(a)(2), because the action was one -based
- upon a commercial activity- that petitioners had -carried
- on in the United States.- Although HCA's recruitment of
- Nelson in the United States might properly be attributed
- to Saudi Arabia and the Hospital, the District Court
- reasoned, it did not amount to commercial activity -carried
- on the United States- for purposes of the Act. Id., at
- 94-95. The court explained that there was no sufficient
- -nexus- between Nelson's recruitment and the injuries
- alleged. -Although [the Nelsons] argu[e] that but for
- [Scott Nelson's] recruitment in the United States, he
- would not have taken the job, been arrested, and suffered
- the personal injuries,- the court said, -this `connection' [is]
- far too tenuous to support jurisdiction- under the Act.
- Id., at 97. Likewise, the court concluded that Royspec's
- commercial activity in the United States, purchasing
- supplies and equipment for the Hospital, id., at 93-94,
- had no nexus with the personal injuries alleged in the
- complaint; Royspec had simply provided a way for Nelson's
- family to reach him in an emergency. Id., at 96.
- The Court of Appeals reversed. 923 F. 2d 1528 (CA11
- 1991). It concluded that Nelson's recruitment and hiring
- were commercial activities of Saudi Arabia and the
- Hospital, carried on in the United States for purposes of
- the Act, id., at 1533, and that the Nelsons' action was
- -based upon- these activities within the meaning of the
- statute. Id., at 1533-1536. There was, the court rea-
- soned, a sufficient nexus between those commercial
- activities and the wrongful acts that had allegedly injured
- the Nelsons: -the detention and torture of Nelson are so
- intertwined with his employment at the Hospital,- the
- court explained, -that they are `based upon' his recruit-
- ment and hiring- in the United States. Id., at 1535. The
- court also found jurisdiction to hear the claims against
- Royspec. Id., at 1536. After the Court of Appeals
- denied petitioners' suggestion for rehearing en banc, App.
- 133, we granted certiorari, 504 U. S. ___ (1992). We now
- reverse.
-
-
- II
- The Foreign Sovereign Immunities Act -provides the sole
- basis for obtaining jurisdiction over a foreign state in the
- courts of this country.- Argentine Republic v. Amerada
- Hess Shipping Corp., 488 U. S. 428, 443 (1989). Under
- the Act, a foreign state is presumptively immune from the
- jurisdiction of United States courts; unless a specified
- exception applies, a federal court lacks subject-matter
- jurisdiction over a claim against a foreign state.
- Verlinden B. V. v. Central Bank of Nigeria, 461 U. S. 480,
- 488-489 (1983); see 28 U. S. C. 1604; J. Dellapenna,
- Suing Foreign Governments and Their Corporations 11,
- and n. 64 (1988).
- Only one such exception is said to apply here. The first
- clause of 1605(a)(2) of the Act provides that a foreign
- state shall not be immune from the jurisdiction of United
- States courts in any case -in which the action is based
- upon a commercial activity carried on in the United States
- by the foreign state.- The Act defines such activity as
- -commercial activity carried on by such state and having
- substantial contact with the United States,- 1603(e), and
- provides that a commercial activity may be -either a
- regular course of commercial conduct or a particular
- commercial transaction or act,- the -commercial character
- of [which] shall be determined by reference to- its -na-
- ture,- rather than its -purpose.- 1603(d).
- There is no dispute here that Saudi Arabia, the Hospi-
- tal, and Royspec all qualify as -foreign state[s]- within the
- meaning of the Act. Brief for Respondents 3; see 28
- U. S. C. 1603(a), (b) (term -foreign state- includes -an
- agency or instrumentality of a foreign state-). For there
- to be jurisdiction in this case, therefore, the Nelsons'
- action must be -based upon- some -commercial activity-
- by petitioners that had -substantial contact- with the
- United States within the meaning of the Act. Because we
- conclude that the suit is not based upon any commercial
- activity by petitioners, we need not reach the issue of
- substantial contact with the United States.
- We begin our analysis by identifying the particular
- conduct on which the Nelsons' action is -based- for
- purposes of the Act. See Texas Trading & Milling Corp.
- v. Federal Republic of Nigeria, 647 F. 2d 300, 308 (CA2
- 1981), cert. denied, 454 U. S. 1148 (1982); Donoghue,
- Taking the -Sovereign- Out of the Foreign Sovereign
- Immunities Act: A Functional Approach to the Commercial
- Activity Exception, 17 Yale J. Int'l L. 489, 500 (1992).
- Although the Act contains no definition of the phrase
- -based upon,- and the relatively sparse legislative history
- offers no assistance, guidance is hardly necessary. In
- denoting conduct that forms the -basis,- or -foundation,-
- for a claim, see Black's Law Dictionary 151 (6th ed. 1990)
- (defining -base-); Random House Dictionary 172 (2d ed.
- 1987) (same); Webster's Third New International Dictio-
- nary 180, 181 (1976) (defining -base- and -based-), the
- phrase is read most naturally to mean those elements of
- a claim that, if proven, would entitle a plaintiff to relief
- under his theory of the case. See Callejo v. Bancomer,
- S. A., 764 F. 2d 1101, 1109 (CA5 1985) (focus should be
- on the -gravamen of the complaint-); accord, Santos v.
- Compagnie Nationale Air France, 934 F. 2d 890, 893 (CA7
- 1991) (-An action is based upon the elements that prove
- the claim, no more and no less-); Millen Industries, Inc.
- v. Coordination Council for North American Affairs, 272
- U. S. App. D. C. 240, 246, 855 F. 2d 879, 885 (1988).
- What the natural meaning of the phrase -based upon-
- suggests, the context confirms. Earlier, see n. 3, supra,
- we noted that 1605(a)(2) contains two clauses following
- the one at issue here. The second allows for jurisdiction
- where a suit -is based . . . upon an act performed in the
- United States in connection with a commercial activity of
- the foreign state elsewhere,- and the third speaks in like
- terms, allowing for jurisdiction where an action -is based
- . . . upon an act outside the territory of the United States
- in connection with a commercial activity of the foreign
- state elsewhere and that act causes a direct effect in the
- United States.- Distinctions among descriptions juxta-
- posed against each other are naturally understood to be
- significant, see Melkonyan v. Sullivan, 501 U. S. ___, ___
- (1991), and Congress manifestly understood there to be a
- difference between a suit -based upon- commercial activity
- and one -based upon- acts performed -in connection with-
- such activity. The only reasonable reading of the former
- term calls for something more than a mere connection
- with, or relation to, commercial activity.
- In this case, the Nelsons have alleged that petitioners
- recruited Scott Nelson for work at the Hospital, signed an
- employment contract with him, and subsequently employed
- him. While these activities led to the conduct that
- eventually injured the Nelsons, they are not the basis for
- the Nelsons' suit. Even taking each of the Nelsons'
- allegations about Scott Nelson's recruitment and employ-
- ment as true, those facts alone entitle the Nelsons to
- nothing under their theory of the case. The Nelsons have
- not, after all, alleged breach of contract, see supra, at 4,
- but personal injuries caused by petitioners' intentional
- wrongs and by petitioners' negligent failure to warn Scott
- Nelson that they might commit those wrongs. Those
- torts, and not the arguably commercial activities that
- preceded their commission, form the basis for the Nelsons'
- suit.
- Petitioners' tortious conduct itself fails to qualify as
- -commercial activity- within the meaning of the Act,
- although the Act is too -`obtuse'- to be of much help in
- reaching that conclusion. Callejo, supra, at 1107 (citation
- omitted). We have seen already that the Act defines
- -commercial activity- as -either a regular course of com-
- mercial conduct or a particular commercial transaction or
- act,- and provides that -[t]he commercial character of an
- activity shall be determined by reference to the nature of
- the course of conduct or particular transaction or act,
- rather than by reference to its purpose.- 28 U. S. C.
- 1603(d). If this is a definition, it is one distinguished
- only by its diffidence; as we observed in our most recent
- case on the subject, it -leaves the critical term
- `commercial' largely undefined.- Republic of Argentina v.
- Weltover, Inc., 504 U. S. ___, ___ (1992); see Donoghue,
- supra, at 499; Lowenfeld, Litigating a Sovereign Immunity
- Claim-The Haiti Case, 49 N. Y. U. L. Rev. 377, 435,
- n. 244 (1974) (commenting on then-draft Act) (-Start with
- `activity,' proceed via `conduct' or `transaction' to `charac-
- ter,' then refer to `nature,' and then go back to `commer-
- cial,' the term you started out to define in the first
- place-); G. Born & D. Westin, International Civil Litiga-
- tion in United States Courts 479-480 (2d ed. 1992). We
- do not, however, have the option to throw up our hands.
- The term has to be given some interpretation, and con-
- gressional diffidence necessarily results in judicial respon-
- sibility to determine what a -commercial activity- is for
- purposes of the Act.
- We took up the task just last Term in Weltover, supra,
- which involved Argentina's unilateral refinancing of bonds
- it had issued under a plan to stabilize its currency.
- Bondholders sued Argentina in federal court, asserting
- jurisdiction under the third clause of 1605(a)(2). In the
- course of holding the refinancing to be a commercial
- activity for purposes of the Act, we observed that the
- statute -largely codifies the so-called `restrictive' theory of
- foreign sovereign immunity first endorsed by the State
- Department in 1952.- 504 U. S., at ___. We accordingly
- held that the meaning of -commercial- for purposes of the
- Act must be the meaning Congress understood the restric-
- tive theory to require at the time it passed the statute.
- See Weltover, supra, at ___.
- Under the restrictive, as opposed to the -absolute,-
- theory of foreign sovereign immunity, a state is immune
- from the jurisdiction of foreign courts as to its sovereign
- or public acts (jure imperii), but not as to those that are
- private or commercial in character (jure gestionis).
- Verlinden B. V. v. Central Bank of Nigeria, 461 U. S., at
- 487; Alfred Dunhill of London, Inc. v. Republic of Cuba,
- 425 U. S. 682, 698 (1976) (plurality opinion); see 28
- U. S. C. 1602; see also Dunhill, supra, at 711 (Appendix
- 2 to the Opinion of the Court) (Letter to the Attorney
- General from Jack B. Tate, Acting Legal Adviser, Dept.
- of State, May 19, 1952); Hill, A Policy Analysis of the
- American Law of Foreign State Immunity, 50 Ford. L.
- Rev. 155, 168 (1981). We explained in Weltover, supra,
- at ___ (quoting Dunhill, supra, at 704), that a state
- engages in commercial activity under the restrictive theory
- where it exercises -`only those powers that can also be
- exercised by private citizens,'- as distinct from those
- -`powers peculiar to sovereigns.'- Put differently, a
- foreign state engages in commercial activity for purposes
- of the restrictive theory only where it acts -in the manner
- of a private player within- the market. 504 U. S., at ___;
- see Restatement (Third) of the Foreign Relations Law of
- the United States 451 (1987) (-Under international law,
- a state or state instrumentality is immune from the
- jurisdiction of the courts of another state, except with
- respect to claims arising out of activities of the kind that
- may be carried on by private persons-).
- We emphasized in Weltover that whether a state acts
- -in the manner of- a private party is a question of behav-
- ior, not motivation:
- -[B]ecause the Act provides that the commercial char-
- acter of an act is to be determined by reference to its
- `nature' rather than its `purpose,' the question is not
- whether the foreign government is acting with a profit
- motive or instead with the aim of fulfilling uniquely
- sovereign objectives. Rather, the issue is whether the
- particular actions that the foreign state performs (what-
- ever the motive behind them) are the type of actions by
- which a private party engages in `trade and traffic or
- commerce.'- Weltover, supra, at ___ (citations omitted)
- (emphasis in original).
- We did not ignore the difficulty of distinguishing
- -`purpose' (i.e., the reason why the foreign state engages
- in the activity) from `nature' (i.e., the outward form of the
- conduct that the foreign state performs or agrees to
- perform),- but recognized that the Act -unmistakably com-
- mands- us to observe the distinction. 504 U. S., at ___
- (emphasis in original). Because Argentina had merely
- dealt in the bond market in the manner of a private
- player, we held, its refinancing of the bonds qualified as
- a commercial activity for purposes of the Act despite the
- apparent governmental motivation. Id., at ___.
- Unlike Argentina's activities that we considered in
- Weltover, the intentional conduct alleged here (the Saudi
- Government's wrongful arrest, imprisonment, and torture
- of Nelson) could not qualify as commercial under the
- restrictive theory. The conduct boils down to abuse of the
- power of its police by the Saudi Government, and however
- monstrous such abuse undoubtedly may be, a foreign
- state's exercise of the power of its police has long been
- understood for purposes of the restrictive theory as
- peculiarly sovereign in nature. See Arango v. Guzman
- Travel Advisors Corp., 621 F. 2d 1371, 1379 (CA5 1980);
- Victory Transport Inc. v. Comisaria General de Abasteci-
- mientos y Transportes, 336 F. 2d 354, 360 (CA2 1964)
- (restrictive theory does not extend immunity to a foreign
- state's -internal administrative acts-), cert. denied, 381
- U. S. 934 (1965); Herbage v. Meese, 747 F. Supp. 60, 67
- (DC 1990), affirmance order, 292 U. S. App. D. C. 84, 946
- F. 2d 1564, cert. denied, 502 U. S. ___ (1991); K. Randall,
- Federal Courts and the International Human Rights
- Paradigm 93 (1990) (the Act's commercial-activity excep-
- tion is irrelevant to cases alleging that a foreign state has
- violated human rights). Exercise of the powers of police
- and penal officers is not the sort of action by which
- private parties can engage in commerce. -[S]uch acts as
- legislation, or the expulsion of an alien, or a denial of
- justice, cannot be performed by an individual acting in his
- own name. They can be performed only by the state
- acting as such.- Lauterpacht, The Problem of Jurisdiction-
- al Immunities of Foreign States, 28 Brit. Y. B. Int'l L.
- 220, 225 (1952); see also id., at 237.
- The Nelsons and their amici urge us to give significance
- to their assertion that the Saudi Government subjected
- Nelson to the abuse alleged as retaliation for his persis-
- tence in reporting Hospital safety violations, and argue
- that the character of the mistreatment was consequently
- commercial. One amicus, indeed, goes so far as to suggest
- that the Saudi Government -often uses detention and
- torture to resolve commercial disputes.- Brief for Human
- Rights Watch as Amicus Curiae 6. But this argument
- does not alter the fact that the powers allegedly abused
- were those of police and penal officers. In any event, the
- argument is off the point, for it goes to purpose, the very
- fact the Act renders irrelevant to the question of an
- activity's commercial character. Whatever may have been
- the Saudi Government's motivation for its allegedly
- abusive treatment of Nelson, it remains the case that the
- Nelsons' action is based upon a sovereign activity immune
- from the subject-matter jurisdiction of United States
- courts under the Act.
- In addition to the intentionally tortious conduct, the
- Nelsons claim a separate basis for recovery in petitioners'
- failure to warn Scott Nelson of the hidden dangers
- associated with his employment. The Nelsons allege that,
- at the time petitioners recruited Scott Nelson and thereaf-
- ter, they failed to warn him of the possibility of severe
- retaliatory action if he attempted to disclose any safety
- hazards he might discover on the job. See supra, at 4.
- In other words, petitioners bore a duty to warn of their
- own propensity for tortious conduct. But this is merely
- a semantic ploy. For aught we can see, a plaintiff could
- recast virtually any claim of intentional tort committed by
- sovereign act as a claim of failure to warn, simply by
- charging the defendant with an obligation to announce its
- own tortious propensity before indulging it. To give juris-
- dictional significance to this feint of language would
- effectively thwart the Act's manifest purpose to codify the
- restrictive theory of foreign sovereign immunity. Cf.
- United States v. Shearer, 473 U. S. 52, 54-55 (1985)
- (opinion of Burger, C. J.).
-
- III
- The Nelsons' action is not -based upon a commercial
- activity- within the meaning of the first clause of
- 1605(a)(2) of the Act, and the judgment of the Court of
- Appeals is accordingly reversed.
- It is so ordered.
-