Inter-American Institute for Cooperation on Agriculture v. Arruda

The case originated from a contract dispute instituted before Brazilian courts against the Inter-American Institute for Cooperation on Agriculture (IICA). The Court of first instance ruled upon the case, finding that IICA had waived its immunity from legal process by the terms of the contract concluded between IICA and the applicant.

IICA filed an appeal to the Federal Supreme Court, claiming that the latter judicial decision infringed its immunity.

The Supreme Court rejected the appeal. As it underlined, the appealed decision did not disclose a violation of the Basic Agreement between Brazil and IICA on privileges and immunities of IICA, nor does it conflict with the well-established jurisprudence of the Supreme Court on international organizations’ jurisdictional immunity. Indeed, the Basic Agreement provides that IICA shall enjoy immunity from Brazilian jurisdiction, except insofar as IICA has expressly waived its immunity. According to the Supreme Court, the choice of forum clause, contained in the contract, entails an express waiver of immunity in accordance with the Agreement.