Arlington County Board v German Democratic Republic

• Court: U.S. District Court — Eastern District of Virginia
• Date: 06 September 1978

United States, District Court, Eastern District, Virginia, Alexandria Division

County Board of Arlington County

and

The Government of the German Democratic Republic, et al

Sovereign immunity Foreign States Government of the German Democratic Republic Whether immune from suit for taxes on land Commercial activities of a foreign government Foreign Sovereign Immunities Act 1976 The law of the United States

Summary: The facts:The defendant Government was the owner of an apartment building in Arlington County. It moved to dismiss an action for county real estate taxes on the building, asserting that the United States courts had no jurisdiction over its person because there had been no service of process under Section 1608 (a) of the Foreign Sovereign Immunities Act 1976.1 The defendant contested jurisdiction over the subject matter of the action on the basis that it was immune from suit under the Foreign Sovereign Immunities Act, the Vienna Convention on Diplomatic Relations, 1961, and international law. The plaintiff moved, inter alia, that the Court allow an amendment of its motion for judgment to add a request for a declaratory judgment that the property was subject to the lien of the county as to the unpaid taxes, penalty and interest.

Held:The defendant's motion to dismiss was denied and the plaintiff's motion to amend was granted.

(1) The Court had jurisdiction over the person of the defendant, service having been effected under Section 1608 (a) (3) of the Foreign Sovereign Immunities Act.

(2) The defendant was not immune from suit. Having regard to the commercial nature of the course of conduct carried on by the defendant in its ownership of the property, and the fact that after the amendment of the plaintiff's pleadings the action placed in issue rights in immovable property in the United States, the case fell under Sections 1605(a)(2) and 1605(a)(4) of the Act.

The following is the text of the judgment of the Court:

The defendant Government of the German Democratic Republic (the government), owner of an apartment building in Arlington County, moved to dismiss the action for 1977 county real estate taxes on the building brought by the plaintiff County Board of Arlington County, Virginia (the county) pursuant to Rule 12(b) of the Federal Rules of Civil Procedure and by its Notice of Motion and Statement of Points and Authorities asserted that the Court has no jurisdiction over the person of the defendant government because there was no service of...