Republic of Peru prevails in sovereign bonds action in Florida
The dispute involved sovereign development bonds previously issued on a compulsory basis to Peruvians and funded by payroll deductions.
We helped our client the Republic of Peru achieve an important victory in an action against it in U.S. Federal Court of the Southern District of Florida. The court dismissed the action, holding that the Republic of Peru has sovereign immunity. The bearer bonds in dispute were originally issued during an economic crisis in the 1980s. The court held that the commercial activity exception did not apply because the bonds were more in the nature of a tax. The court also concluded that there was no commercial activity in the United States by Peru in connection with the development bonds, and that U.S. citizens now holding the bonds does not create the necessary nexus to the United States. Read more