Arab Monetary Fund v. Hashim and Others

[1991] UKHL J0221-1 (1991)

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Arab Monetary Fund v. Hashim and Others

United Kingdom House of Lords
[1991] UKHL J0221-1 (1991)

Facts

Twenty Arab states and Palestine jointly established the Arab Monetary Fund (AMF) (plaintiff) through the Arab Monetary Fund Agreement (the agreement) to develop Arab economies. The agreement provided that the AMF would have juridical personality, giving it the right to contract, acquire and dispose of property, sue, and be sued. The AMF headquarters was located in Abu Dhabi in the United Arab Emirates (UAE). The UAE formally ratified the agreement and recognized the AMF. The AMF appointed Jawad Hashim (defendant) as its director-general. During his tenure, Hashim embezzled $50 million from the AMF, and the AMF sued Hashim and his family members in the United Kingdom (UK) to recover the money. Hashim moved to strike the complaint, contending that the AMF lacked the capacity to sue. The trial court denied the motion, but the court of appeal reversed the trial court’s decision and dismissed the AMF’s claim. The AMF appealed to the House of Lords.

Rule of Law

Issue

Holding and Reasoning (Templeman, J.)

Dissent (Lowry, J.)

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