On November 4, 1979, Iranian militants seized the diplomatic and military personnel attached to the United States Embassy in Tehran. The Americans were held hostage in violation of international law for over fourteen months.
See Case Concerning United States Diplomatic and Consular Staff in Tehran (U.S. v. Iran),
1980 I.C.J. 3;
see also Dames & Moore v. Regan,
This action was brought by twelve former hostages and by wives of two ex-hostages. Plaintiffs seek rédress in tort against Iran for damages suffered during and as a result of their Iranian captivity, as well as declaratory relief against the United States. Plaintiffs base their allegation of subject matter jurisdiction over Iran on 28 U.S.C. §§ 1331 and 1332, and on the Foreign Sovereign Immunities Act (“FSIA”), 28 U.S.C. § 1330(a), and over the United States on 28 U.S.C. §§ 1331 and 1361.
The claims of thirteen of the plaintiffs were consolidated before Judge Gray of the District Court for the Central District of California, and Judge Hall of that district heard the fourteenth case. Both judges granted the rtiotion of the United States, appellee here, to dismiss for lack of subject matter jurisdiction, and for failure to state a claim on which relief could be granted. 1
We affirm the district court’s dismissal of the actions for lack of subject matter jurisdiction. 2 In addition, we reject appellants’ suggestion that we remand this case to' determine whether the executive agreements negotiated by the President to obtain the hostages’ release constitute a valid claim against the United States for a “taking” of property without just compensation, because the proper forum to adjudicate that issue is the United States Claims Court. Finally, we deny appellants’ motion to transfer this case to that court.
I.
JURISDICTION OYER IRAN
Appellants assert federal question and diversity jurisdiction over the Islamic Republic of Iran, 28 U.S.C. §§ 1331 and 1332, as well as jurisdiction derived from the Foreign Sovereign Immunities Act, id. § 1330(a). We hold that there is no basis under sections 1331 and 1332 or the FSIA for jurisdiction over Iran.
A. Federal Question and Diversity Jurisdiction
Congress has the power through the Arising Under and Diversity Clauses of Article III of the Constitution to confer jurisdiction on the federal courts to hear suits such as the present one, where United States citizens seek redress against a foreign state defendant.
Verlinden B.V. v. Central Bank of Nigeria,
- U.S. -,
1. Section 1331
Although section 1331 grants district courts federal question jurisdiction over all cases “arising under” federal law,
cf. Osborn v. Bank of the United States,
The federal question presented by appellants here is such an assertion. Appellants assert that the FSIA waives Iran’s immunity from suit. The FSIA, however, does not affect the substantive law of liability.
See First National City Bank
v.
Banco Para el Comercio Exterior de Cuba,
- U.S.-,
2. Section 1332
Section 1332(a)(2) presently gives the district courts jurisdiction over civil actions between “citizens of a State and citizens or subjects of a foreign state.” Before the adoption of the FSIA, section 1332(a)(2) also extended district court jurisdiction to suits between “citizens of a State and foreign states.” 62 Stat. 869, 930 (1948). However, Congress, as part of the FSIA, removed this jurisdiction from section 1332, and placed it in a new section, 1330.
4
H.R. Rep. No. 1487, 94th Cong., 2d Sess. 14,
reprinted in
1976 U.S.Code Cong. & Ad.News 6604, 6613. Moreover, the legislative history of the FSIA notes that section 1330 was enacted to promote “uniformity in decision,”
id.
at 13, 1976 U.S.Code Cong.
&
Ad.News at 6611, and implies that jurisdiction over foreign states and their instru-mentalities as defendants can only be obtained under the FSIA. Indeed, every appellate court to address the issue has so
*587
held.
See Goar v. Compania Peruana de Vapores,
B. Foreign Sovereign Immunities Act Jurisdiction
28 U.S.C. § 1330(a) states that district court jurisdiction over claims against foreign state defendants is limited to cases in “which the foreign state is not entitled to immunity either under sections 1605-1607 of ... title [28] or under any applicable international agreement.” The district court examined the relevant passages of the FSIA, and found that sovereign immunity barred suit against Iran. We affirm.
Under the FSIA, sovereign immunity is waived in suits “for money damages .,. against a foreign state for personal injury or death, or damage to or loss of property, occurring in the United States and caused by the tortious act or omission of that foreign state .... ” 28 U.S.C. § 1605(a)(5) (emphasis added). 28 U.S.C. § 1603(c) defines “the United States” for purposes of the FSIA to include “all territory and waters, continental or insular, subject to the jurisdiction of the United States.”
This brings us to the heart of this case. Appellants argue that section 1603(c) should be interpreted to embrace “all territory and waters” with respect to which the United States exercises any form of jurisdiction. Inasmuch as United States embassies are subject to the jurisdiction of the United States for certain purposes, appellants argue that events occurring at the embassies fall within the waiver of immunity contained in section 1605(a)(5). Although a literal reading of the statute supports this argument, we decline to accept it because we believe the intent of Congress was to the contrary.
Cf. United States v. American Trucking Ass’ns,
Our view rests on the proposition that Congress intended that the FSIA would make United States law on sovereign immunity consistent with international law.
See Texas Trading & Milling Corp. v. Federal Republic of Nigeria,
Informed as we must be by that practice the issue before us is whether the embassy in Tehran is “territory . .. subject to the jurisdiction of the United States.” Appellants contend that it is. Territory, of course, is a primary basis for jurisdiction,
i.e.,
a state may prescribe and enforce a rule of law for conduct occurring in territory under the state’s sovereignty. Restatement (Second) of the Foreign Relations Law of the United States §§ 10,17, 20 (1965) [hereinafter cited as Restatement (Second) ].
7
A United States embassy, however, remains the territory of the receiving state, and does not constitute territory of the United States. Restatement (Second) § 77 comment a. Thus, United States embassies are not within the territorial jurisdiction of the United States.
See Meredith v. United States,
This is sufficient to dispose of appellants’ contention. They argue, however, that United States embassies are “territory” subject to the jurisdiction of the United States on other grounds. Two such grounds are nationality and the protective__ principle. A state, for example, may punish the wrongful conduct of its citizens, no matter where it takes place.
E.g., Skiriotes v. Florida,
Appellants claim that
United States v. Erdos
establishes that embassies are subject to the jurisdiction of the United States for purposes of the FSIA with the result that jurisdiction exists for their suit against the
nation
of Iran. We disagree. In
Erdos,
a United States diplomat killed a fellow citizen within a United States embassy.
To interpret section 1603(c) as urged by appellants would represent a fundamental change in the prevailing international practice with respect to sovereign immunity. Under that practice assertions of jurisdiction based on nationality or the protective principle are not limited by the extent of a state’s territory. If these bases of jurisdiction extended the “United States,” as that term is used in section 1603(c), to any place at which they possibly could support jurisdiction, the FSIA would have almost unlimited geographic scope. Such an unprecedented assertion of jurisdiction against foreign states could interfere with the conduct of our foreign policy and impair relations between the United States and other governments. For example, were we to uphold jurisdiction here, and a Greek mail truck were to injure an American serviceman on a United States Army base in Greece,- the American could sue the Greek government in the United States. Moreover, under the principle of reciprocity, see 6 M. Whiteman, Digest of International Law 580-82 (1968), the United States could become subject to foreign jurisdiction for torts committed by its agents and employees at foreign embassies in the United States.
We conclude that the phrase “territory ... subject to the jurisdiction of the United States” refers to areas subject to the territorial jurisdiction of the United States. The general rule is that “legislation of Congress, unless a contrary intent appears, is meant to apply only within the territorial jurisdiction of the United States.”
Foley Bros. v. Filardo,
*590 II.
TAKING CLAIM
Appellants argue that if we affirm the dismissal of their claims on the merits— as we have done—we should remand this case to the district court to determine whether the Claims Settlement Agreement gives rise to a valid claim against the United States for a taking of property without just compensation. We are unable to remand this case, however, because the district court lacks jurisdiction to hear appellants’ taking claim. .
There is district court jurisdiction for civil actions against the United States, such as a taking claim, only if the damages sought do not exceed $10,000. 28 U.S.C. § 1346(a)(2). Because appellants contend that each claim against Iran amounts to at least $5,000,000, E.R. at 32-33, jurisdiction would not lie with the district court, but with the United States Claims Court, 28 U.S.C. § 1491.
See Dames & Moore,
Appellants seek to avoid this conclusion by arguing that they are not seeking damages because of a taking, but only a declaratory judgment that the Claims Settlement Agreement is invalid because it took appellants’ property rights. Thus, appellants contend, the district courts should have had jurisdiction under 28 U.S.C. §§ 1331 and 2201 to award the requested relief. Appellants’ argument is without merit.
First, appellants are mistaken in ■ their assumption that acceptance of their taking claim would invalidate Executive Order 12283. A federal court may not invalidate a governmental action under the Taking Clause if at the time of the alleged taking, there was a “reasonable, certain and adequate provision for obtaining compensation.”
Cherokee Nation v. Southern Kansas Ry.,
Second, the Claims Court’s jurisdiction cannot be avoided by a complaint that appears to seek only equitable relief when the real effort of the complaining party is to obtain damages in excess of $10,000 from the federal government.
Laguna Hermosa Corp. v. Martin,
Finally, the Claims Court does have the authority to issue a declaratory judgment where, as in the present case, declaratory relief is tied and subordinate to a monetary award.
See Rowe v. United States,
III.
TRANSFER TO CLAIMS COURT
Appellants have requested us to transfer their taking claim to the United States Claims Court. While we probably have the authority to make such a transfer under 28 U.S.C. § 1631,
see Hempstead County and Nevada County Project v. United States Environmental Protection Agency,
Section 1631 provides that a transfer of an action or appeal shall be made “to any such court in which the action or appeal could have been brought at the time it was filed” if the transfer “is in the interest of justice.”
See Campbell v. Office of Personal Management,
AFFIRMED.
Notes
. Defendant, the Islamic Republic of Iran, was represented in the district court by counsel, but did not defend the action, leaving that task to the United States.
.
Persinger v. Islamic Republic of Iran,
No. 81-2003 (D.C.Cir., Oct. 8, 1982), involves issues similar to those presented here. In
Persinger,
the Court of Appeals for the District of Columbia held that the FSIA gave the district court jurisdiction for a suit by an ex-hostage against Iran for torts committed during the seizure of the United States embassy. The court further held that the suit was precluded by the executive agreements negotiated by President Carter to secure the release of the hostages.
Williams v. Iran,
The Court of Appeals for the District of Columbia subsequently withdrew its opinion in Persinger and granted the motion of the United States for a rehearing on the jurisdictional issue. Two cases against the United States by former hostages seeking compensation for preclusion of their claims against Iran are pending in the United States Claims Court. Cooke v. United States, No. 581-82C; Amburn v. United States, No. 564-82C.
. Appellants also seek a declaratory judgment that they are not barred by several executive agreements from suing Iran for the injuries they suffered while being held hostage. This too is an assertion that federal law deprives the defendant of a defense, and thus does not meet the requirements of the well-pleaded complaint rule.
See Franchise Tax Board,
Shaw v. Delta Airlines,
Inc.,-U.S. -,
. There is still § 1332 jurisdiction over diversity suits involving foreign state plaintiffs. 28 U.S.C. § 1332(a)(4).
. See also S.Rep. No. 1310, 94th Cong., 2d Sess. 9, 11 (1976); 122 Cong.Rec. 33532 (1976) (statement of Rep. Danielson); Jurisdiction of U.S. Courts in Suits Against Foreign States: Hearings Before the Subcomm. on Administrative Law and Governmental Relations of the House Comm, on the Judiciary, 94th Cong., 2d Sess. 29 (remarks of Bruno Ristau, U.S. Dep’t of Justice); id. at 33 (remarks of Monroe Leigh, U.S. Dep’t of State).
. The FSIA codifies the “restrictive” principle of sovereign immunity as recognized in international law. Under this principle, the immunity of a foreign state is “restricted” to suits involving a foreign state’s public acts (jure imperii) and does not extend to suits based on its commercial or private acts (jure gestionis). H.R. Rep. No. 1487, supra, at 7, 1976 U.S.Code Cong. & Ad.News at 6605-06.
. The doctrine of sovereign immunity has been explained as an implied waiver by the domestic state of its exercise of territorial jurisdiction in regard to a foreign sovereign.
The Schooner Exchange v. M’Faddon,
. 18 U.S.C. § 7 provides in pertinent part:
The term “special maritime and territorial jurisdiction of the United States,” as used in this title, includes:
(3) Any lands reserved or acquired for the use of the United States, and under the exclusive or concurrent jurisdiction thereof, or any place purchased or otherwise acquired by consent of the legislature of the State in which the same shall be, for the erection of a fort, magazine, arsenal, dockyard, or other needful building.
. We also believe that
United States v. Pizzarusso,
.The claims of family members fare no better than the claims of the hostages themselves. The FSIA merges the questions of subject matter and personal jurisdiction. 28 U.S.C. § 1330(a) provides statutory subject matter jurisdiction against a foreign state for nonjury civil actions in which the foreign state is not entitled to immunity under §§ 1603-07. 28 U.S.C. § 1330(b) provides that personal jurisdiction is satisfied if the court has subject matter jurisdiction under § 1330(a) and there has been service of process pursuant to § 1608.
Congress intended that the immunity provisions which establish subject matter jurisdiction would also prescribe the necessary contacts that must exist for courts to exercise personal jurisdiction. H.R.Rep. No. 1487,
supra,
at 13, 1976 U.S.Code Cong. & Ad.News at 6612. Consequently, in defining the contours
*590
of § 1605(a)(5), we are sensitive to the constitutional requirement that minimum contacts must exist for the assertion of jurisdiction against a foreign sovereign.
See Maritime International Nominees Establishment v. Republic of Guinea,
We need not decide whether § 1605(a)(5) may ever provide jurisdiction for tort actions in which the tortious act or omission occurs outside the United States. The language of § 1605(a)(5) suggests that only the injury need occur in the United States, but the legislative history declares that, “the tortious act or omission must occur within the jurisdiction of the United States.” H.R.Rep. No. 1487,
supra, at
21, 1976 U.S.Code Cong. & Ad.News at 6619. Judicial decisions reflect similar disagreement.
Compare Frolova v. Union of Soviet Socialist Republics,
