International Association of Machinists and Aerospace Workers v. Organization of Petroleum Exporting Countries (OPEC)

649 F.2d 1354 (1981), cert. denied, 454 U.S. 1163 (1982)

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International Association of Machinists and Aerospace Workers v. Organization of Petroleum Exporting Countries (OPEC)

United States Court of Appeals for the Ninth Circuit
649 F.2d 1354 (1981), cert. denied, 454 U.S. 1163 (1982)

  • Written by Heather Whittemore, JD

Facts

Members of the International Association of Machinists and Aerospace Workers (the association) (plaintiff) accused the Organization of Petroleum Exporting Countries (OPEC) (defendant) and its member nations of price-fixing activities related to oil and petroleum-derived products in violation of United States antitrust laws. The district court dismissed the case, holding that under the doctrine of sovereign immunity it lacked jurisdiction. The district court analyzed the case under the Foreign Sovereign Immunities Act, which limits the jurisdiction of United States courts over foreign nations to cases involving commercial activity. The district court reasoned that OPEC’s actions were related to the control of natural resources, an essential government function, and were therefore not commercial activities that were excepted from sovereign immunity. The association appealed.

Rule of Law

Issue

Holding and Reasoning (Choy, J.)

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