A recent suit has practical implications for
similar organisations’ immunity in the US, write
Latham & Watkins lawyers
|1 minute read
|On February 27 2019, the
United States Supreme Court delivered a 7-1 opinion in
Jam v International Finance Corporation, holding
that the immunity granted to international organisations
under the International Organizations Immunity Act (IOIA)
is not nearly absolute, but rather evolves with the
immunity available to foreign governments.
While the full legal implications of this decision on
multilateral development banks’ (MDB)
exposure to suits in the US are not yet known, it is
reasonable to expect that this decision may have some
practical implications on MDBs in the near term.
In 2008, the International Finance Corporation (IFC), an
international organisation headquartered in Washington DC that
finances private sector development, provided construction
financing to the developer of a coal-fired power plant in
Gujarat, India (Plant).
In 2015, Budha Ismail Jam...