Karaha Bodas Co., L.L.C. v. Perusahaan Pertambangan Minyak Dan Gas Bumi Negara

313 F.3d 70 (2002)

From our private database of 46,100+ case briefs, written and edited by humans—never with AI.

Karaha Bodas Co., L.L.C. v. Perusahaan Pertambangan Minyak Dan Gas Bumi Negara

United States Court of Appeals for the Second Circuit
313 F.3d 70 (2002)

RW

Facts

Karaha Bodas Company, L.L.C. (KBC) (plaintiff), a Cayman Islands company, contracted to supply services for Perusahaan Pertambangan Minyak Dan Gas Bumi Negara (Pertamina) (defendant), a government-owned instrumentality of the Republic of Indonesia. Under the contract, Pertamina waived its right to claim sovereign immunity against attachment of its foreign-held assets. A contract dispute arose, which Swiss arbitrators resolved by awarding damages to KBC. KBC filed suit in a New York federal district court to execute the award by attaching bank accounts that Pertamina maintained in the United States. Pertamina used some of the account funds to facilitate its American business activities under contracts governed by New York law. Under the Foreign Sovereign Immunities Act of 1976 (FSIA) and New York law, Pertamina’s United States bank accounts were attachable if Pertamina owned the funds in those accounts. However, Indonesian law required the eventual return of Pertamina’s remaining account funds, except for a small retention allowance, to the Indonesian government. The district court ruled that, except for Pertamina’s retention allowance, Pertamina’s account funds belonged to the Indonesian government, and thus Indonesian sovereign immunity mostly shielded the accounts from attachment. KBC appealed to the Second Circuit.

Rule of Law

Issue

Holding and Reasoning (Sack, J.)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 748,000 law students since 2011. Some law schools—such as Yale, Berkeley, and Northwestern—even subscribe directly to Quimbee for all their law students.

    Unlock this case briefRead our student testimonials
  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.

    Learn about our approachRead more about Quimbee

Here's why 748,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 46,100 briefs, keyed to 987 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.

Access this case brief for FREE

With a 7-day free trial membership
Here's why 748,000 law students have relied on our case briefs:
  • Reliable - written by law professors and practitioners, not other law students
  • The right length and amount of information - includes the facts, issue, rule of law, holding and reasoning, and any concurrences and dissents
  • Access in your class - works on your mobile and tablet
  • 46,100 briefs - keyed to 987 casebooks
  • Uniform format for every case brief
  • Written in plain English - not in legalese and not just repeating the court's language
  • Massive library of related video lessons - and practice questions
  • Top-notch customer support

Access this case brief for FREE

With a 7-day free trial membership