U.S. Supreme Court PRINCIPALITY OF MONACO v. STATE OF MISSISSIPPI, 292 U.S. 313 (1934)

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immunity in the plan of the convention.' The Federalist, No. 81. The question is whether the plan of the Constitution involves the surrender of immunity when the suit is brought against a State, without her consent, by a foreign State.

The debates in the Constitutional Convention do not disclose a discussion of this question. But Madison, in the Virginia Convention, answering objections to the ratification of the Constitution, clearly stated his view as to the purpose and effect of the provision conferring jurisdiction over controversies between States of the Union and foreign States. That purpose was suitably to provide for adjudication in such cases if consent should be given but not otherwise. [Footnote 2] Madison said: 'The next case provides for disputes between a foreign state and one of our states, should such a case ever arise; and between a citizen and a foreign citizen or subject. I do not conceive that any controversy can ever be decided, in these courts, between

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The contracts between a nation and individuals are only binding on the conscience of the sovereign, and have no pretensions to a compulsive force. They confer no right of action independent of the sovereign will. To what purpose would it be to authorize suits against States for the debts they owe? How could recoveries be enforced? It is evident it could not be done without waging was against the contracting State; and to ascribe to the federal courts by mere implication, and in destruction of a pre-existing right of the State governments, a power which would involve such a consequence would be altogether forced and unwarrantable.' [Footnote 4]

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'The suability of a state, without its consent, was a thing unknown to the law. This has been so often laid down and acknowledged by courts and jurists that it is hardly necessary to be formally asserted. It was fully shown by an exhaustive examination of the old law by Mr. Justice Iredell in his opinion in Chisholm v. Georgia; and it has been conceded in every case since, where the question has, in any way, been presented, even in the cases which have gone furthest in sustaining suits against the officers or agents of states.'

The Court then adverted to observations of Chief Justice Marshall in Cohens v. Virginia, 6 Wheat. 264, which favored the argument of the plaintiff in error, but as those observat ons were unnecessary to the decision in the case of Cohens, the Court was of the opinion that they should not 'outweigh the important considerations referred to which lead to a different conclusion.' [Footnote 6]

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provision prohibiting agreements between States and foreign powers in the absence of the consent of the Congress. While, in this instance, the proposed suit does not arise a question of national concern, the constitutional provision which is said to confer jurisdiction should be construed in the light of all its applications.

We conclude that the Principality of Monaco, with respect to the right to maintain the proposed suit, is in no better case than the donors of the bonds, and that the application for leave to sue must be denied.

Rule discharged, and leave denied. Footnotes

Footnote 1 See Briscoe v. Bank of Kentucky, 11 Pet. 257, 321; Darrington v. Bank of Alabama, 13 How. 12, 17; Beers v. Arkansas, 20 How. 527, 529; In re Ayers, 123 U.S. 443, 505, 8 S.Ct. 164.

Footnote 2 There is no question but that foreign States may sue private parties in the federal courts. King of Spain v. Oliver, Fed. Cas. No. 7, 814, 2 Wash.C.C. 429, 431; The Sapphire, 11 Wall. 164, 167. In the latter case the court said (pages 167, 168 of 11 Wall.): 'Our own government has largely availed itself of the like privilege to bring suits in the English courts in cases growing out of our late civil war. Twelve or more of such suits are enumerated in the brief of the appellees, brought within the last five years in the English law, chancery, and admiralty courts. There are numerous cases in the English reports in which suits of foreign sovereigns have been sustained, though it is held that a sovereign cannot be forced into court by suit.' Cases cited. In Kingdom of Roumania v. Guaranty Trust Co. (C.C.A.) 250 F. 341, Ann. Cas. 1918E, 524, the court held that the bringing of an action by a foreign nation in a court of the United States to recover a deposit placed to its credit in a bank was not a waiver of its immunity as a sovereign from suit by other parties, and hence that the court was without jurisdiction to permit the defendant by interpleader to substitute as defendant another party claiming a lien on the deposit as a creditor of the plaintiff. See, also, Republic of Columbia v. Cauca Co., , 23 S.Ct. 704; Ex parte Muir, 254 U.S. 522, 41 S.Ct. 185.

Footnote 3 See Story on the Constitution, 1699; Willoughby on the Constitution (2d Ed.) 885.

Footnote 4 For statements by Madison and Marshall in the Virginia Conv ntion in relation to the nonsuability of States by individuals, see 3 Elliot's Debates, 533, 555.

Footnote 5 For comment upon the force of this dissent, see Hans v. Louisiana, 134 U.S. 1, 12, 14 S., 10 S.Ct. 504; Williams v. United States, 289 U.S. 553, 574, 576 S., 577, 53 S.Ct. 751.

Footnote 6 See State of Missouri v. Illinois, 180 U.S. 208, 240, 21 S.Ct. 331; New Hampshire v. Louisiana, , 2 S.Ct. 176.