Atlantic Tele-Network Inc. v. Inter-American Development Bank et al

The Atlantic Tele-Network Inc. sued the Inter-American Development Bank (IADB) and the State of Guyana before the District Court of the District of Columbia. The applicant, a private company of the United States, complained that the stipulation of a loan agreement between IADB and Guyana had determined a violation of its rights under a contract concluded between the company and Guyana.

The IADB invoked its immunity from legal process pursuant to the Agreement Establishing the Inter-American Development Bank (the Charter) and the International Organization Immunity Act (IOIA). As objected by the applicant, while IADB  enjoys absolute immunity under the IOIA, it has waived that immunity for some classes of disputes including the instant legal proceeding. In particular, it relied on Section 3 of Article XI of the IADB Charter: “Actions may be brought against the Bank only in a court of competent jurisdiction in the territories of a member in which the Bank has an office, has appointed an agent for the purpose of accepting service or notice of process, or has issued or guaranteed securities.” 

The District Court dismissed the broad interpretation of Section 3 of the IADB Charter, holding that the respondent organization had not waived its immunity from the instant legal process. In particular, the District Court referred to the precedent of Atkinson v.IADB, in which it has been affirmed that “the Bank’s immunity should be construed as not waived unless the particular type of suit would further the Bank’s objectives.” As stressed by the District Court, under the applicant’s interpretation, any citizen  of the United States with a commercial grievance against a debtor State could challenge an IDB loan to the courts of that State without any corresponding benefit to the Bank