Texas Trading & Milling Corp. v. Federal Republic of Nigeria
United States Court of Appeals for the Second Circuit
647 F.2d 300 (2d Cir. 1981)
The Federal Military Government of the Federal Republic of Nigeria (Nigeria) (defendant) entered into contracts with four American trading companies (plaintiffs) to purchase large shipments of cement. Nigeria needed large quantities of cement for oil-rigging infrastructure. Nigeria also entered into contracts with 64 other concrete suppliers around the world. Nigeria estimated that most of the suppliers would not be able to fulfill the contracts, but this estimation proved incorrect. In short time, there were myriad ships backed up in Nigeria’s ports seeking to unload the cement that Nigeria had purchased. Nigeria repudiated several of the contracts, including those with the plaintiffs. The plaintiffs brought suit in United States federal district court. Nigeria claimed that it had sovereign immunity from the lawsuits.
Rule of Law
Holding and Reasoning (Kaufman, J.)
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