IN RE B-727 AIRCRAFT SERIAL NO. 21010, Etc.; ET AL., Plaintiffs, HASHEMITE KINGDOM OF JORDAN, ex rel. by and through His Excellency Dr. Marwan Muasher, Ambassador and Chief of Mission to the United States in his Official Capacity, Plaintiff-Appellant, versus LAYALE ENTERPRISES, S.A., Appellee.
No. 00-11018
UNITED STATES COURT OF APPEALS FOR THE FIFTH CIRCUIT
October 31, 2001
Before POLITZ and BARKSDALE, Circuit Judges, and FALLON, District Judge1.
RHESA HAWKINS BARKSDALE, Circuit Judge:
The primary issue at hand is whether an in rem action brought by an ambassador in a representative capacity constitutes an action “against” that ambassador, so that a federal district court has subject matter jurisdiction pursuant to
I.
In 1999, through its Ambassador, Jordan instituted this action with a “Complaint for Action In Rem“, seeking declaratory and injunctive relief. The complaint stated: a Boeing 727-200 Aircraft, Serial No. 21010 (Aircraft), that had been sequestered by the Sheriff of Tarrant County, Texas, was subject to Jordan‘s immunity as a foreign sovereign; and any sequestration violated that sovereignty and must be dissolved.
A.
The complaint alleges the following: In October 1992, Rifaat Al Assad of Syria, then owner of the Aircraft, had it transported to Jordan. Al Assad is the father of the president of Layale Enterprises, S.A., a Panamanian company. The Aircraft was registered in the Cayman Islands. While the Aircraft remained in Jordan, Alia/The Royal Jordanian Airlines Corporation (Royal Jordanian), an entity wholly owned by Jordan, had several contacts with Layale‘s representatives concerning necessary repairs to the
After the Aircraft had been in Amman for two years, Jordanian officials estimated it would cost in excess of $2 million for service, repairs, accumulated rental charges, and other expenses to satisfy minimum airworthiness requirements. Soon after this estimate was made, Al Assad gifted the Aircraft to Jordan (around mid-1994).
Jordan ultimately conveyed the Aircraft to HRH Prince Talal bin Mohammed and HRH Princess Ghida Talal (the alleged owners). The alleged owners are members of Jordan‘s Royal Family and also are, and were at all relevant times, accredited diplomats to the United States. They planned to use the Aircraft for travel associated with their official duties as diplomats and members of the Royal Family.
In mid-1996, Jordan‘s Civil Aviation Authority issued to the alleged owners a temporary registration for the Aircraft. (Layale asserts that the Aircraft continues to be registered in the Cayman Islands and has never been deregistered.)
Several months earlier, in March 1996, the alleged owners entered into an “Operating Agreement” with Arab Wings Co. Amman. Arab Wings is a wholly owned subsidiary of Royal Jordanian. Therefore, Jordan owns Arab Wings through Royal Jordanian. The contract was renewed in April 1997. (The renewed contract is in the record; it expired a year later, in April 1998.)
Under the terms of that lease agreement, the alleged owners agreed to provide the Aircraft to HMS Aviation, and HMS Aviation in turn agreed to undertake certain enhancements and repairs on behalf of the alleged owners and operator. Pursuant to its lease, and in fulfillment of its agreement to renovate and refurbish the Aircraft, HMS Aviation brought the Aircraft to the United States for servicing at Meacham Field, Fort Worth, Texas.
In April 1997, while the Aircraft was located at Meachem Field, Layale initiated litigation in Texas state court in Tarrant County. Layale claimed ownership of the Aircraft and sought a judgment for title and possession. Jordan was not a named defendant. Layale obtained an ex parte writ of sequestration for the Aircraft on the basis of a $5,000 bond. The writ remains in effect.
HMS Aviation, the lessee, made a special appearance in the state court proceedings solely to contest personal jurisdiction. In May 1997, HMS Aviation removed the action to federal court based on claimed federal question jurisdiction pursuant to
Almost a year later, in April 1998, the state court ruled: HMS Aviation was not subject to personal jurisdiction; but the court had in rem jurisdiction over the Aircraft. Therefore, the state court dismissed HMS Aviation but retained in rem jurisdiction. HMS Aviation filed an interlocutory appeal, contesting such jurisdiction.
That appeal was pending when, in August 1998, Jordan intervened to assert foreign sovereign immunity as an absolute jurisdictional bar to any judicial proceeding in the United States regarding the Aircraft operated by Jordan‘s wholly-owned instrumentality, Arab Wings, and owned by members of the Royal Family. Pursuant to
In early 1999, the district court sua sponte remanded the case to state court, pursuant to
Jordan sought mandamus from our court and appealed. Mandamus was denied. In Re Hashemite Kingdom of Jordan, No. 99-10581 (5th Cir. 8 June 1999) (unpublished). And, in December 1999, pursuant to
B.
Shortly after the dismissal of its appeal, Jordan filed this action, making the above described allegations and giving notice to Layale as a potentially interested party. Layale responded by moving to dismiss for lack of subject matter jurisdiction and for failure to state a claim; and, in the alternative, Layale moved for abstention. It also moved to strike the affidavit of Jordan‘s Ambassador filed in support of the complaint.
That August, the federal district court granted Layale‘s motion to dismiss this action for lack of subject matter jurisdiction. It concluded: neither the Declaratory Judgment Act, the Foreign Sovereign Immunities Act (FSIA), nor
II.
A district court dismissal for lack of subject matter jurisdiction is reviewed de novo. E.g., John G. & Marie Stella Kenedy Mem‘l Found. v. Mauro, 21 F.3d 667, 670 (5th Cir.), cert. denied, 513 U.S. 1016 (1994). It goes without saying that federal courts are courts of limited jurisdiction.
Article III of the Constitution of the United States provides that “[t]he judicial Power . . . shall be vested in one supreme Court, and in such inferior Courts as the Congress may from time to time ordain and establish“.
It is more than well established that Congress has plenary authority to regulate federal court jurisdiction and can withhold such jurisdiction at its discretion. See Doleac v. Michalson, 264 F.3d 470, 492 (5th Cir. 2001); see also Kline v. Burke Constr. Co., 260 U.S. 226, 234 (1922); Cary v. Curtis, 44 U.S. 236, 245 (1845). “Courts created by statute can have no jurisdiction but such as the statute confers.” Sheldon v. Sill, 49 U.S. 441, 449 (1850). In short, there must be a statutory basis for the district court‘s jurisdiction over the claims asserted by Jordan.
Seeking a declaratory judgment is an appropriate mechanism for obtaining a determination of immunity. See
Likewise, as Jordan acknowledges, the FSIA,
Instead, the FSIA provides the sole basis for obtaining in personam jurisdiction over a foreign state. Argentine Republic v. Amerada Hess Shipping Corp., 488 U.S. 428, 443 (1989). In conjunction with the FSIA, federal courts have jurisdiction over civil actions against “a foreign state . . . as to any claim for relief in personam with respect to which the foreign state is not entitled to immunity under [
A “foreign state” includes “a political subdivision of a foreign state or an agency or instrumentality of a foreign state“, defined as:
any entity -
(1) which is a separate legal person, corporate or otherwise, and
(2) which is an organ of a foreign state or political subdivision thereof, or a majority of whose shares or other ownership interest is owned by a foreign state or political subdivision thereof, and
(3) which is neither a citizen of a State of the United States as defined in section 1332(c) and (d) of this title, nor created under the laws of any third country.
Needless to say, this case is quite unusual. Examining the “interest” asserted by Jordan assists in deciding whether subject matter jurisdiction is lacking.
A.
Federal courts may only adjudicate actual cases or controversies.
In district court and here, Layale has claimed lack of standing, questioning what “interest” Jordan asserts in the Aircraft. Layale maintains: Jordan‘s only interest is in the Operating Agreement (between the alleged owners and Arab Wings);
The interest Jordan is asserting is not made clear by its briefs or complaint, which repeatedly make statements such as “Layale has asserted a title interest in the Aircraft in which [Jordan] holds a sovereign interest“. It appears that the sovereign interest at issue is that embodied in the Operating Agreement. At oral argument, when asked whether the interest Jordan asserts is that in the Operating Agreement, Jordan‘s counsel stated it was. And, in its briefs, Jordan characterizes Layale‘s position as being that Jordan cannot have a sovereign interest apart from an interest in title. Jordan does not maintain that it is asserting the alleged owners’ title and ownership interest: “[T]he FSIA provides immunity to a foreign state to protect its interests (i.e.[,] the integrity of its sovereignty) and is not limited to asserting mere title interests“.
Jordan asserts: its interest in the Aircraft is precisely the question, that by claiming immunity, it seeks to avoid litigating; and deciding its interest would reach the merits of the case. Layale counters that a mere assertion that integrity of a sovereign is at issue, without more, is insufficient to create immunity. Although the alleged interest in the Operating Agreement may be
In any event, we need not decide standing vel non. A more certain resolution lies through the issue of subject matter jurisdiction.
B.
Jordan presents several alternative bases for subject matter jurisdiction. Each fails.
1.
The first basis claimed is
(b) The Supreme Court shall have original but not exclusive jurisdiction of:
(1) All actions or proceedings to which ambassadors, other public ministers, consuls, or vice consuls of foreign states are parties[.]
The 1948 revisions, codified as
The purpose of that revision was to allow district courts to exercise concurrent jurisdiction “in those instances where foreign
Therefore,
Along this line, and as discussed in the earlier referenced 1948 Acts note to
2.
Accordingly, Jordan also seeks shelter under the above referenced
The district courts shall have original jurisdiction, exclusive of the courts of the States, of all civil actions and proceedings against - . . . members of a mission.
a.
Whether Jordan is correct that an action can be “against” an ambassador if he brings it in a “defensive” position is discussed infra in part II.B.2.b. In any event,
It seems inconceivable that Congress intended
No relief “against” the Ambassador is sought in either this action or the underlying state-court proceeding. Whatever interest of Jordan in the Aircraft may be at issue, it is not an interest held by Jordan‘s Ambassador. Therefore, jurisdiction is also lacking under
b.
One point highlighted by the district court was that this in rem action was brought by, rather than against, the Ambassador. Based on our conclusion that the district court lacks jurisdiction because the Ambassador brought the action in his representative capacity, we need not further analyze jurisdiction under
Jordan claims
Jordan asserts that, “in Leiter [Minerals, Inc. v. United States, 352 U.S. 220 (1957)], the Supreme Court held that a sovereign may file its own federal in rem action to adjudicate its
In Leiter, the United States brought an action in rem to obtain federal declaratory relief regarding its title to mineral rights. Leiter, 352 U.S. at 228. Leiter Minerals had previously brought an action in state court against mineral lessees of the United States seeking to be declared owner of mineral rights under land owned by the United States. Id. at 221. Similar to Layale‘s not suing Jordan in the pending state court action, Leiter Minerals did not name the United States as a defendant. Id. at 222. The United States then brought a federal declaratory action against Leiter and others to quiet title in the mineral rights and for a preliminary injunction restraining Leiter from prosecuting its action in state court. Id. at 223.
At issue on appeal was the application of the Anti-Injunction Act,
The Court did state that, in attempting to protect its property rights, “the position of the United States is essentially a defensive one [and therefore] it should be permitted to choose the forum in th[e] case, even though the state litigation has the elements of an action characterized as quasi in rem“. Id. at 228 (emphasis added). The Court made that statement, however, only in passing and as part of its conclusion that the injunction had been properly granted. Id. at 226-28. Any extension of the “Leiter doctrine” has involved the application of the Anti-Injunction Act or another instance in which the federal government was found “more justified in seeking a federal forum than a private litigant“. United States v. Commonwealth of Pa., Dep‘t of Envtl. Res., 923 F.2d 1071, 1078 (3d Cir. 1991).3 Jordan has asserted the Leiter
3.
As discussed supra, the FSIA does not create jurisdiction. Jordan acknowledges this, yet asserts that “the FSIA, as well as the federal common law of foreign relations, present the court with cognizable federal questions for which subject matter jurisdiction is conferred by
a.
Subject to existing international agreements to which the United States is a party at the time of enactment of this Act the property in the United States of a foreign state shall be immune from attachment arrest and execution except as provided in sections 1610 and 1611 of this chapter.
b.
Jordan‘s claim that a
Jordan did not, however, raise this issue in district court. It goes without saying that this point should have been first presented there, so that it could have been properly and completely developed. For example, factual development may have been
III.
For the foregoing reasons, the dismissal of this action is AFFIRMED.
22
Notes
Subject to existing international agreements to which the United States is a party at the time of enactment of this Act the property in the United States of a foreign state shall be immune from attachment arrest and execution except as provided in sections 1610 and 1611 of this chapter.
