FG Hemisphere Associates, LLC v. Democratic Republic of Congo
394 U.S. App. D.C. 439
| D.C. Cir. | 2011Background
- Hemisphere obtained two arbitration awards against DR Congo for unpaid debts; DR Congo initially did not participate in arbitration or district court proceedings.
- Hemisphere sought confirmation of awards under FSIA §1605(a)(6); district court entered default judgments against DR Congo.
- Post-judgment, Hemisphere sought post-judgment discovery to locate DR Congo assets in the US and abroad for execution.
- DR Congo, now participating, defied a discovery plan requiring broad asset disclosures; produced only DC real property documents.
- District court found DR Congo in civil contempt for noncompliance with the discovery order, imposed escalating fines as sanctions.
- DR Congo challenged the contempt order as unauthorized by FSIA and by policy/equity; government filed amicus brief supporting DR Congo.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether FSIA abrogates the court's inherent contempt power over a foreign sovereign. | Hemisphere: inherent contempt exists; FSIA does not strip it. | DRC/government: FSIA forbids contempt sanctions against foreign states. | FSIA does not abrogate inherent contempt power. |
| Whether the district court properly exercised civil contempt for discovery noncompliance. | Hemisphere: district court has inherent power to enforce discovery; FSIA not limiting. | DRC/government: sanctions improper if unenforceable. | Court did not abuse discretion; sanctions appropriate to compel compliance. |
| Whether equity/comity considerations negate or limit the contempt sanctions. | Hemisphere: sanctions justified given obdurate noncompliance. | DRC/government: comity and international practice weigh against sanctions. | Equity/comity do not preclude sanctions given noncooperation. |
Key Cases Cited
- Af-Cap Inc. v. Republic of Congo, 462 F.3d 417 (5th Cir. 2006) (contempt orders inconsistent with FSIA; monetary sanctions not expressly authorized)
- Autotech Techs. v. Integral Research & Dev., 499 F.3d 737 (7th Cir. 2007) (FSIA contempt power not clearly limited by statute)
- Spallone v. United States, 493 U.S. 265 (1990) (inherent contempt power; runs with the court's jurisdiction)
- Young v. United States ex rel. Vuitton et Fils, S.A., 481 U.S. 787 (1987) (inherent contempt power authority)
- Shillitani v. United States, 384 U.S. 364 (1966) (foundational authority for civil contempt power)
- De Letelier v. Republic of Chile, 748 F.2d 790 (2d Cir. 1984) (FSIA context and limitations on enforcement)
- Altmann v. Republic of Austria, 541 U.S. 677 (2004) (considerations of foreign policy in related actions)