Packsys v. Exportadora de Sal, No. 16-55380 (9th Cir. 2018)Annotate this Case
The Director General of a Mexican government-owned corporation, Exportadora de Sal (ESSA), entered into a long-term, multimillion dollar contract with another Mexican corporation, Packsys, to sell the briny residue from its salt production process. Because the Director General did not have actual authority to execute the contract, ESSA invoked sovereign immunity when a suit was filed in the United States.
The Ninth Circuit affirmed the district court's dismissal of Packsys's suit based on lack of jurisdiction. The panel declined to create a new rule that would extend the commercial activity exception to the Foreign Sovereign Immunities Act (FSIA) to embrace activities of a foreign agent having only apparent authority to engage in them. The panel also did not accept that principles of ratification or waiver improved Packsys's position. Therefore, ESSA properly invoked sovereign immunity under the FSIA.