International law firm Dorsey & Whitney LLP announced today that a team of its lawyers led by Partner Juan Basombrio has just won an important victory for its client the Republic of Peru.
The Republic of Peru was sued in U.S. Federal Court of the Southern District of Florida based on sovereign development bonds issued in Peru in the 1980s, during the Peruvian economic crisis. Hoban v. Republic of Peru, case no. 15-81105-CIV-COHN/SELTZER (S.D. Fla.). The bonds were issued on a compulsory basis to Peruvians, and funds for their purchase were deducted from monthly paychecks by law.
On August 31, 2016, the court granted Peru’s motion to dismiss, holding that Peru has sovereign immunity. 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 these bearer bonds does not create the necessary nexus to this country.
The Dorsey team representing Peru also included Of Counsel Tim Droske and Associate Forrest Tahdooahnippah.