The Exchange v. McFaddon (1812)

In The Exchange v. McFaddon (1812) 11 U.S. 116, the Court reasoned that although the jurisdiction of the United States over persons and property within its territory is susceptible to no limitation not imposed by itself, ... as a matter of comity, members of the international community had implicitly agreed to waive the exercise of jurisdiction over other sovereigns in certain classes of cases, such as those involving foreign ministers or the person of the sovereign." The Court held that "The jurisdiction of the nation within its own territory is necessarily exclusive and absolute. It is susceptible of no limitation not imposed by itself." That case extended virtually absolute immunity to foreign sovereigns as a matter of grace and comity. Since the case of The Schooner Exchange v. M'Faddon, it is well settled that only governmental instrumentalities, like warships, are exempt from the jurisdiction of our courts. In holding that the suit should be dismissed, the Court stated: "One sovereign being in no respect amenable to another; and being bound by obligations of the highest character not to degrade the dignity of his nation, by placing himself or its sovereign rights within the jurisdiction of another, can be supposed to enter a foreign territory only under an express license, or in the confidence that the immunities belonging to his independent sovereign station, though not expressly stipulated, are reserved by implication, and will be extended to him." In the wake of McFaddon, courts were expected to defer to the decisions of the political branches-in particular, those of the Executive Branch-on whether to take jurisdiction over actions against foreign sovereigns and their instrumentalities. (Ye v. Zemin, 383 F.3d 620, 624 (7th Cir.2004))