Sovereign Immunity Restricted to Noncommercial Activity-Victory Transport Inc. v. Comisaria General de Abastecimientos y Transportes

Although frequently criticized, the established doctrine of absolute sovereign immunity has long prevented suits in the courts of the United States against foreign nations without their consent. The Court of Appeals for the Second Circuit, however, in ,em>Victory Transport Inc. v. Comisaria General de Abastecimientos y Transportes, affirmed a district court order compelling arbitration between an American shipowner and the Spanish Ministry of Commerce in accordance with the terms of a contract to carry wheat from Alabama to Spain. Although the Spanish Consul asserted that the Ministry, as a branch of the Spanish government, was immune from suit in American courts, the court classified the transaction as commercial and permitted the suit.