Transaero, Inc. v. La Fuerza Aerea Boliviana

Transaero, Inc. (plaintiff) sold parts to La Fuerza Aerea Boliviana (the Bolivian Air Force) (defendant). Transaero sued the Bolivian Air Force in federal district court in New York for breach of contract. Transaero attempted to serve the Bolivian Air Force, but the Bolivian Air Force did not appear. As a result, the district court scheduled a default hearing. Transaero mailed notice to the Bolivian Air Force and other representatives of the Bolivian government. When none responded, the district court granted default judgment in favor of Transaero. The district court found that the requirements for service on a government agency or instrumentality under § 1608(b) of the Foreign Sovereign Immunities Act (the act) were satisfied. Transaero registered the judgment in the district court for the District of Columbia. The Bolivian Air Force responded and moved to dismiss the case. The Bolivian Air Force argued that the district court lacked personal jurisdiction because service of process was not properly completed under the act. The Bolivian Air Force asserted that it was a “foreign state or political subdivision of a foreign state,” and service was therefore governed by § 1608(a) of the act. The Bolivian Air Force argued that the requirements for service under § 1608(a) were not met by Transaero, which never attempted to effect service under the requirements of § 1608(a). The district court held that the Bolivian Air Force was an agency or instrumentality of Bolivia, not a foreign state or political subdivision of a foreign state, so service under § 1608(b) was proper and gave the New York district court jurisdiction over the Bolivian Air Force. The Bolivian Air Force filed an interlocutory appeal.