Polak v. International Monetary Fund

• Decision Date: 28 September 2009
• Docket Number: Civil Action No. 08-1416 (RMU).
• Citation: 657 F.Supp.2d 116
• Parties: Jacques J. POLAK, Plaintiff, v. INTERNATIONAL MONETARY FUND, Defendant.
• Court: U.S. District Court — District of Columbia

657 F.Supp.2d 116

Jacques J. POLAK, Plaintiff, v. INTERNATIONAL MONETARY FUND, Defendant.

Civil Action No. 08-1416 (RMU).

United States District Court, District of Columbia.

September 28, 2009.

Benjamin G. Chew, Patton Boggs LLP, Washington, DC, John C. Hilton, Patton Boggs LLP, Denver, CO, for Plaintiff.

Patrick Joseph Carome, Christopher E. Babbitt, Wilmer Cutler Pickering Hale & Dorr, Washington, DC, for Defendant.

MEMORANDUM OPINION

RICARDO M. URBINA, District Judge.

GRANTING THE DEFENDANT'S MOTION TO DISMISS FOR LACK OF SUBJECT MATTER JURISDICTION; DENYING THE PLAINTIFF'S MOTION FOR JURISDICTIONAL DISCOVERY

I. INTRODUCTION

This matter comes before the court on the defendant's motion to dismiss for lack of subject matter jurisdiction. The plaintiff, renowned economist Dr. Jacques Polak, commenced the instant action against the defendant, the International Monetary Fund ("IMF"), alleging negligence and negligence per se in the construction and maintenance of stairs on the IMF's premises. The defendant moves to dismiss the case, maintaining that the IMF is immune from suit and that such immunity deprives the court of subject matter jurisdiction. In response, the plaintiff denies that the defendant is immune and moves for a stay of the case pending jurisdictional discovery on that issue. The court agrees that the defendant is immune from the instant suit and grants the defendant's motion to dismiss. In addition, because granting discovery would not yield information that would bear on the defendant's immunity, the court denies the plaintiff's motion for jurisdictional discovery.

II. FACTUAL & PROCEDURAL BACKGROUND

On November 15, 2007, the plaintiff attended the defendant's eighth annual Jacques Polak Research Conference at the defendant's headquarters in Washington, D.C. Compl. ¶ 6. As the plaintiff was descending the stairs in the headquarters conference room, he fell and struck his head, sustaining "serious, permanent, debilitating injuries." Id. ¶ 8. As a result of these injuries, the plaintiff asserts he requires ongoing medical care. Id. ¶ 9.

The plaintiff filed suit on August 14, 2008, alleging that the defendant was negligent in failing to construct and maintain the stairs at a safe incline, warn the plaintiff about the condition of the stairs and provide an adequate handrail. Id. ¶¶ 15-21. The plaintiff also claims the defendant was negligent per se for failing to equip the conference room stairs with a handrail as required by the District of Columbia Building Code. Id. ¶ 10.

The defendant moves to dismiss under Federal Rules of Civil Procedure 12(b)(1) and 12(b)(6) on the grounds that it is immune from suit under both the Bretton Woods Agreements Act ("BWAA") and the International Organizations Immunities Act ("IOIA"). Def.'s Mot. to Dismiss at 1. The plaintiff opposes the defendant's motion to dismiss and moves to stay the case pending jurisdictional discovery. See generally Mem. in Support of Pl.'s Opp'n to Def.'s Mot. to Dismiss & Mot. for Stay ("Mem. in Support of Pl.'s Mot. for Stay"). The court now turns to the applicable legal standard and the parties' arguments.

III. ANALYSIS

A. Legal Standard for a Motion to Dismiss Pursuant to 12(b)(1)

Federal courts are courts of limited jurisdiction and the law presumes that "a cause lies outside this limited jurisdiction." Kokkonen v. Guardian Life Ins. Co. of Am., 511 U.S. 375, 377, 114 S.Ct. 1673, 128 L.Ed.2d 391 (1994); St. Paul Mercury Indem. Co. v. Red Cab Co., 303 U.S. 283, 288-89, 58 S.Ct. 586, 82 L.Ed. 845 (1938); see also Gen. Motors Corp. v. Envtl. Prot. Agency, 363 F.3d 442, 448 (D.C.Cir.2004) (noting that "[a]s a court of limited jurisdiction, we begin, and end, with an examination of our jurisdiction").

Because "subject-matter jurisdiction is an `Art[icle] III as well as a statutory requirement[,] no action of the parties can confer subject-matter jurisdiction upon a federal court.'" Akinseye v. District of Columbia, 339 F.3d 970, 971 (D.C.Cir. 2003) (quoting Ins. Corp. of Ir., Ltd. v. Compagnie des Bauxites de Guinee, 456 U.S. 694, 702, 102 S.Ct. 2099, 72 L.Ed.2d 492 (1982)). On a motion to dismiss for lack of subject matter jurisdiction pursuant to Rule 12(b)(1), the plaintiff bears the burden of establishing by a preponderance of the evidence that the court has subject matter jurisdiction. Lujan v. Defenders of Wildlife, 504 U.S. 555, 561, 112 S.Ct. 2130, 119 L.Ed.2d 351 (1992).

Because subject matter jurisdiction focuses on the court's power to hear the claim, however, the court must give the plaintiff's factual allegations closer scrutiny when resolving a Rule 12(b)(1) motion than would be required for a Rule 12(b)(6) motion for failure to state a claim. Macharia v. United States, 334 F.3d 61, 64, 69 (D.C.Cir.2003); Grand Lodge of Fraternal Order of Police v. Ashcroft, 185 F.Supp.2d 9, 13 (D.D.C.2001). Thus, the court is not limited to the allegations contained in the complaint. Hohri v. United States, 782 F.2d 227, 241 (D.C.Cir.1986), vacated on other grounds, 482 U.S. 64, 107 S.Ct. 2246, 96 L.Ed.2d 51 (1987). When necessary, the court may consider the complaint supplemented by undisputed facts evidenced in the record, or the complaint supplemented by undisputed facts plus the court's resolution of disputed facts. Herbert v. Nat'l Acad. of Scis., 974 F.2d 192, 197 (D.C.Cir.1992).

B. The Court Grants the Defendant's Motion to Dismiss for Lack of Subject Matter Jurisdiction

The defendant urges the court to dismiss the instant suit because, under both the BWAA and the IOIA, the defendant is absolutely immune from all forms of judicial process. Def.'s Mot. to Dismiss at 1. The BWAA establishes that certain provisions of the defendant's Articles of Agreement "have full force and effect in the United States." Id. at 3 (quoting 22 U.S.C. § 286h). One of the Articles of Agreement incorporated by the BWAA provides that "[t]he [defendant], its property and its assets, wherever located and by whomsoever held, shall enjoy immunity from every form of judicial process except to the extent that it expressly waives its immunity for the purpose of any proceedings or by the terms of any contract." Def.'s Mot. at 4-5 (quoting Articles of Agreement of the International Monetary Fund ("Articles of Agreement"), Art. IX, § 3 (emphasis added)). Because it has not waived its immunity, the defendant maintains, the Articles of Agreement render it absolutely immune from this suit.¹ Def.'s Mot. at 4.

In addition to relying on its Articles of Agreement, the defendant relies on the IOIA as an independent source of immunity. Id. at 5. The IOIA confers designated international organizations with "the same immunity from suit and every form of judicial process as is enjoyed by foreign governments." Id. at 3 (quoting 22 U.S.C. § 288a(b)). Because President Truman designated the defendant as an international organization entitled to the privileges and immunities conferred by the IOIA, the defendant argues that it is absolutely immune from suit based on the IOIA. Id.

The plaintiff disagrees, asserting that the defendant's immunity under both its Articles of Agreement, as incorporated by the BWAA, and the IOIA is limited by the functional necessity doctrine. Mem. in Support of Pl.'s Mot. for Stay at 4-9. In other words, according to the plaintiff, both statutes permit immunity only to the extent necessary to allow the organization to fulfill its functions. Id. at 4-6. Thus, by way of example, the plaintiff explains that the defendant is immune from suits relating to personnel management decisions because such immunity is necessary for the defendant to fulfill its organizational functions. Id. at 6-8. In contrast, the plaintiff argues, international organizations do not need to be free from common law negligence claims to function effectively. Id. at 9-10. Based on this rationale, the plaintiff contends that the defendant cannot claim immunity under either statute. Id. at 10-15.

The plaintiff's argument does not persuade the court that the defendant is amenable to suit. The BWAA provides that Article IX, §§ 2 through 9 of the defendant's Articles of Agreement "shall have full force and effect in the United States." 22 U.S.C. § 286h (citing Articles of Agreement). Article IX, § 3 states that the defendant is immune from "every form of judicial process" unless it expressly waives its immunity. Articles of Agreement, Art. IX, § 3. Similarly, the IOIA establishes that foreign governments and certain international organizations, including the defendant, are "immun[e] from suit and every form of judicial process ... except to the extent that such organizations may expressly waive their immunity." 22 U.S.C. § 288a(b). Thus, the BWAA and the IOIA each provide a basis for immunity. The court will address each in turn.

1. Immunity Under the BWAA

In support of his claim that the defendant's immunity under the BWAA is circumscribed by the functional necessity doctrine, the plaintiff cites Article IX, § 1 of the defendant's Articles of Agreement, which states: "To enable the [defendant] to fulfill the functions with which it is entrusted, the status, immunities, and privileges set forth in this Article shall be accorded to the [defendant] in the territories of each member." Articles of Agreement, Art. IX, § 1. But the Articles' statement of purpose does not necessarily act as a limitation on the defendant's immunity. Cf. Brzak v. United Nations, 551 F.Supp.2d 313, 318 (S.D.N.Y.2008) (holding that the United Nations is absolutely immune to suit, notwithstanding language in the United Nations Charter similar to that in Article IX, § 1 of the defendant's Articles of Agreement).²

Even more persuasive is the fact that the BWAA codified only §§ 2 through 9 of Article IX. 22 U.S.C. § 286h. Because the BWAA did not incorporate § 1, that section cannot limit the defendant's immunity from suit. In accordance with this interpretation of the Articles of Agreement as they...