U.S. Supreme Court Rules Against World Bank Arm on Immunity
- International Finance Corp. sought to end power plant suit
- Immunity doesn’t protect commercial activities, court says
The U.S. Supreme Court building stands in Washington, D.C.
Photographer: Al Drago/BloombergThis article is for subscribers only.
The U.S. Supreme Court opened some American-based international organizations to lawsuits, ruling that a World Bank affiliate must defend against allegations it is responsible for environmental damage caused by a power plant in India.
Voting 7-1 on Wednesday, the court said sovereign immunity doesn’t protect those international organizations in the U.S. when they are involved in commercial activities.