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Commentary: Consequences of US Supreme Court ruling on lack of immunity of Intl. Finance Corp. for accountability mechanisms

Author: Kristina Daugirdas, Just Security (USA), Published on: 18 March 2019

"What Comes Next: After Supreme Court Reduced Obstacles to Suing International Organizations", 13 Mar 2019

Suing international organizations just got a little bit easier, as a result of a 7-1 U.S. Supreme Court decision issued last week in Jam v. International Finance Corporation. The case concerned the scope of immunity provided to these organizations — including the World Bank, the World Health Organization, and dozens of others — by the International Organizations Immunities Act (IOIA). The result is a significant, but still incomplete, victory for the plaintiffs.

The D.C. Circuit had long interpreted the statute to provide absolute immunity to international organizations, at least in the absence of a waiver or some other limitation. The Supreme Court held that the immunity conferred by the IOIA is considerably narrower — specifically, that it tracks the immunity that foreign governments enjoy from suit. But how much will this ruling open the courthouse doors to those seeking to hold international organizations accountable?...

...[S]ubjecting international organizations to suit in national courts involves serious problems and risks as well...

The best solution by far would be to strengthen the international accountability mechanisms created to provide recourse for communities harmed by projects involving international organizations...

Along similar lines, Jam may encourage negotiations between international organizations and the U.S. government that would lead to the development or reinforcement of such accountability mechanisms....

But Jam also might pull in the opposite direction and discourage the further development or retention of accountability mechanisms...

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