NML Capital Ltd & Yukos Universal Limited

Constitutional Court, NML Capital Ltd & Yukos Universal Limited, Nr. 48/2017, 27 April 2017

The Constitutional Court examines two actions for annulment filed by the companies NML Capital and Yukos Universal against the law of 23 August 2015 introducing Article 1412quinquies of the Judicial Code, which provides for a far-reaching immunity from execution for property of foreign States or international organizations. In light of the case-law of the Strasbourg Court, the Court acknowledges that restrictions on the right to access to Court and the right to property that stem from immunity of execution for property of foreign States are accepted inasmuch as they reflect generally recognized international immunity rules. What is more, Article 19 of the 2004 UN Convention on State Immunity, while not yet in force, can be regarded as indicative of present international custom on States’ immunity from execution.
The Court notes that the requirement under Article 1412quinquies that a State waiver from immunity from execution be ‘express’ is in accordance with the aforementioned Convention and international custom. By contrast, the additional requirement that such waiver must also be ‘specific’ goes beyond what international custom posits inasmuch as this requirement of specificity applies not only to diplomatic property (including embassy bank accounts), consular property, property of special missions, or international organizations (which is permissible), but also to other property of a foreign State more generally. The provision is indeed annulled to the extent that it extends the specificity requirement to the latter. By contrast, the Court upholds the requirement in Article 1412 quinquies that any attachment of the property of a foreign State presupposes prior approval by the juge de saisie.

VANDERSCHUREN, J., "Satisfecit constitutionnel partiel pour l’article 1412quinquies du Code judiciaire", JT 2018, afl. 6737, 560-564 and http://jt.larcier.be/ (6 july 2018).

Central Bank of Iraq v Commerzbank AG, Prysmian Finland OY et al.

Belgian Supreme Court, Central Bank of Iraq v Commerzbank AG, Prysmian Finland OY et al., Nr. C.14.0459.N/1, 15 May 2015

The Belgian Supreme Court observes that the immunity from execution owed to foreign States pursuant to customary international law, treaty law or national law, is not absolute and is susceptible to waiver of immunity. Immunity from execution does not alter the fact that grievances regarding the seizability of goods must be brought before the court in a timely manner.


NML Capital Ltd v Republic of Argentina

Belgian Supreme Court, NML Capital Ltd v Republic of Argentina, Nr. C.13.0537.F, 11 December 2014
ECLI:BE:CASS:2014:ARR.20141211.4 

According to the Court, the right of access to court, as enshrined in Article 6 ECHR, cannot be invoked to force a State to set aside the customary rule of immunity from execution, which seeks to ensure the proper functioning of diplomatic missions and to promote friendly relations between sovereign States. The Court rejects the argument that immunity from execution must be set aside when no alternative means of legal redress are available.


Republic of Argentina v NMC Capital Ltd

Belgian Supreme Court, Republic of Argentina v. NMC Capital LTD, Nr. C.11.0688.F, 22 November 2012
ECLI:BE:CASS:2012:ARR.20121122.3

The judgment annuls a previous judgment by the Brussels Court of Appeals dated 21 June 2011. In the latter judgment , the Court of Appeals took the view that Argentina’s general waiver of immunity from jurisdiction and immunity from execution also covered the goods of Argentina’s diplomatic mission in Belgium, including its bank accounts (without there being a need to verify whether the amounts seized were used for purposes other than the functioning of the diplomatic mission). According to the Supreme Court, this approach violated articles 22, 3 and 25 of the Vienna Convention on Diplomatic Relations as well as the customary rule of ‘ne impediatur legatio’. In particular, the Supreme Court confirmed the need for an explicit and specific waiver of immunity in respect of goods of the diplomatic mission.


Confederation of Christian Trade Unions and General Federation of Labour of Belgium v United States

Labour Court of Appeal Brussels, Confederation of Christian Trade Unions and General Federation of Labour of Belgium v United States, Nr. 2010/AB/1214, 3 May 2012
ECLI:BE:CTBRL:2012:ARR.20120503.14

The jurisdictional immunity of states is a rule of customary international law that prohibits the jurisdictions of one state from exercising its jurisdictional power over another state that has not consented. However, this immunity is limited: it concerns acts relating to sovereignty, not administration. In principle, the states may not invoke jurisdictional immunity before a court of another state in proceedings relating to employment contracts. However, no exception to the states’ jurisdictional immunity is provided for collective labor relations. Disputes concerning the regulations on the establishment of works councils are collective and not individual. The primacy of access to justice (Article 6 of the ECHR) over the rule of jurisdictional immunity and immunity from execution presupposes that the person against whom the immunity is asserted does not have other reasonable means of effectively obtaining the protection of the rights guaranteed to him by the ECHR. What matters in this regard is not that an action can be brought in the state of residence of the plaintiffs or that certainty is provided as to the application of the law of that state by the foreign jurisdiction, but that that jurisdiction (or the body of the international organization to which an internal action can be brought, as in the cases submitted to the Supreme Court) provides the guarantees of impartiality and independence of the court.