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Economics

The Doctrine of Sovereign Immunity for Foreign States

Quick fact

The doctrine of sovereign immunity, rooted in the Latin maxim 'par in parem non habet imperium' (an equal has no power over an equal), historically gave foreign states absolute immunity from lawsuits. But today, most nations follow a 'restrictive' approach, allowing suits for commercial activities but not for sovereign acts—a shift that began with a 1952 U.S. State Department letter called the 'Tate Letter'.

Why this is interesting

Imagine you could sue a foreign government in your local court for something it did to you overseas. The doctrine of sovereign immunity often blocks that lawsuit before it even begins—but why, and are there any exceptions?