Court Permits Non-Sovereign To Invoke Sovereign Immunity Defense Of Absent, Defaulting Non-U.S. Sovereign

First Investment Corp of the Marshall Islands v. Fujian Mawei Shipbuilding, Ltd. et al., Civil Action No. 09-3663 (E.D. La. June 2011), addresses the interesting international practice question under what circumstances may a non-sovereign assert a sovereign immunity defense. In this case, the international litigation issues are even more deserving of consideration, since the sovereign had defaulted.

The Fujian Respondents were non-sovereign entities. The People's Republic of China is also a defendant/respondent. Earlier in the case the Court had confirmed a final arbitral award against the Fujian Respondents and China. Default judgments had been entered...