In: Economics
Discuss the public policy arguments in defense of sovereign and official immunity and the answers given in response by citizens.
Sovereign immunity is a principle of justice that prohibits the prosecution of the state or its political subdivisions, departments and agencies without their permission.
Sovereign immunity has two forms: (1) litigation immunity (also known as jurisdiction or adjudication immunity) and (2) compliance immunity. The latter prohibits the argument from being asserted; the latter prevents collecting on a verdict even a competent litigant.
There is no complete form of immunity. All accept exemptions that require acts under certain conditions–but not always the same. Depending on the facts, in order to bring and win a lawsuit, a litigant may be able to invoke an exception to immunity from litigation, but may not be able to collect because none of the exceptions to compliance immunity apply. In any particular case, consideration of both suit and compliance protection as well as applicable exceptions to each case is important.
The level of compliance immunity is somewhat different. Where FSIA views foreign states and their assets about the same for protection from suit purposes, for compliance, state-owned property is treated differently from property owned by its agencies. Only if the property at question is "used for commercial activity" can a judgment be imposed against foreign state assets–a term that has not been fully developed as it applies to funds.