Not a Lexis Advance subscriber? Try it out for free.

Anglo-Iberia Underwriting Mgmt. Co. v. P.T. Jamsostek (Persero)

United States Court of Appeals for the Second Circuit

October 27, 2009, Argued; March 29, 2010, Decided

Docket Nos. 08-2666-cv (L), 08-2836-cv (XAP)

Opinion

 [*174]  JOHN M. WALKER, JR., Circuit Judge:

Anglo-Iberia Underwriting Management Company and Industrial Re International, Inc. (collectively, "Anglo-Iberia") appeal from an order of the United States District Court for the Southern District of New York (Donald C. Pogue, Judge, of the United States Court of International Trade, sitting by designation) that dismissed Anglo-Iberia's negligent supervision claim against the Indonesian state-owned social security insurer, P.T. Jamsostek (Persero) ("Jamsostek"), and the Republic of Indonesia ("Indonesia") for lack of subject matter jurisdiction under the Foreign Sovereign Immunities Act ("FSIA"), 28 U.S.C. §§ 1330, 1602-1611. Because we conclude that neither Jamsostek nor Indonesia was involved in "commercial activity" for purposes of the FSIA, 28 U.S.C. § 1605(a)(2), and that, even assuming arguendo that they were involved in "commercial activity," Jamsostek's alleged failure to supervise its employees was not "in connection with" such commercial activity, id., we AFFIRM the district court's dismissal of Anglo-Iberia's claim for  [**3] lack of subject matter jurisdiction.

BACKGROUND

This case comes before this court for a second time, see Anglo-Iberia Underwriting Mgmt. Co. v. Lodderhose, 235 F. App'x 776 (2d Cir. 2007) (summary order) ("Anglo-Iberia I"), and involves only the negligent supervision claim we remanded in Anglo-Iberia I. Specifically, this appeal concerns the district court's dismissal on remand of Anglo-Iberia's claim that Jamsostek negligently supervised its employee, Prio Adhi Sartono, as well as other Jamsostek employees who acted together with Sartono to perpetrate an international commercial reinsurance fraud scheme to Anglo-Iberia's detriment. According to Anglo-Iberia, Jamsostek's negligent supervision of its employees enabled Sartono to commit commercial reinsurance fraud against Anglo-Iberia while Sartono was in Colorado pursuing a Jamsostek-sponsored MBA. 1 On remand, the district court concluded that it lacked subject matter jurisdiction over Anglo-Iberia's negligent supervision claim against Jamsostek and Indonesia because Jamsostek's activities were not commercial in nature and did not fall within a FSIA-enumerated exception to sovereign immunity. See Anglo-Iberia Underwriting Mgmt. Co. v. Lodderhose, No. 97-0084 (DCP), 2008 U.S. Dist. LEXIS 4655, 2008 WL 190364, at *1, *4-5 (S.D.N.Y. Jan. 22, 2008).  [**4] We assume familiarity with this court's May 2007 summary order and the opinions below, 2 and set forth the relevant facts in the discussion section only insofar as necessary to resolve the instant appeal.

DISCUSSION

Read The Full CaseNot a Lexis Advance subscriber? Try it out for free.

Full case includes Shepard's, Headnotes, Legal Analytics from Lex Machina, and more.

600 F.3d 171 *; 2010 U.S. App. LEXIS 6394 **

ANGLO-IBERIA UNDERWRITING MANAGEMENT COMPANY, Plaintiff-Counter-Defendant-Appellant-Cross-Appellee, INDUSTRIAL RE INTERNATIONAL, INC., Plaintiff-Appellant-Cross-Appellee, -- v. -- P.T. JAMSOSTEK (PERSERO) and REPUBLIC OF INDONESIA, Defendants-Appellees-Cross-Appellants, Daniel J. Lodderhose and Security Resources International, Inc., Defendants-Counter-Claimants-Cross-Defendants, Security Resources International, Inc., GC Insurance Brokers, Limited, CG Intermediaries Limited, Peter I. Greengrass, Leslie J. Cooper and A.J. Smith, Defendants-Counter-Claimants, Prio Adhi Sartano, Consolidated Defendant.

Prior History:  [**1] Anglo-Iberia Underwriting Management Company and Industrial Re International, Inc., appeal from an order of the United States District Court for the Southern District of New York (Donald C. Pogue, Judge, of the United States Court of International Trade, sitting by designation) that dismissed their negligent supervision claim against P.T. Jamsostek (Persero) and the Republic of Indonesia for lack of subject matter jurisdiction under the Foreign Sovereign Immunities Act ("FSIA"). Because we conclude that P.T. Jamsostek (Persero) and the Republic of Indonesia were not engaged in "commercial activity" for purposes of the FSIA, and that, even assuming arguendo that they were involved in "commercial activity," their alleged negligent supervision of Jamsostek employees was not "in connection with" such commercial activity, we AFFIRM the district court's dismissal of the claim for lack of subject matter jurisdiction.

Anglo-Iberia Underwriting Mgmt. Co. v. Lodderhose, 2008 U.S. Dist. LEXIS 4655 (S.D.N.Y., Jan. 22, 2008)

Disposition: AFFIRMED.

CORE TERMS

commercial activity, negligent supervision, sovereign immunity, foreign state, employees, sovereign, health insurance, foreign sovereign, district court, purposes, subject matter jurisdiction, social security, health insurer, engages, insurer

International Law, Foreign Sovereign Immunities Act, Jurisdiction, General Overview, Sovereign Immunity, Exceptions, Burdens of Proof, Civil Procedure, Appeals, Standards of Review, Clearly Erroneous Review, Appellate Review of Decisions, De Novo Review, Questions of Fact & Law, Subject Matter Jurisdiction, Commercial Activities, Nexus With Cause of Action