ETA067 v The Republic of Nauru

The High Court of Australia heard an appeal concerning the Republic of Nauru's liability for alleged breaches of a settlement agreement. The appellant, ETA067, sought to enforce a judgment obtained in the Supreme Court of Queensland against Nauru, which had been registered in the Federal Court of Australia. The core of the dispute revolved around whether Nauru was entitled to sovereign immunity from execution in Australia in relation to the registered judgment.

The central legal issue before the High Court was whether Nauru could claim sovereign immunity from execution in Australian courts, notwithstanding that the underlying debt arose from a commercial transaction. Specifically, the Court had to consider the application of the *Foreign States Immunities Act 1985* (Cth) and its provisions concerning immunity from execution, particularly in circumstances where the judgment debt was not directly related to commercial property located in Australia.

The High Court held that Nauru was not entitled to sovereign immunity from execution. The Court reasoned that section 10 of the *Foreign States Immunities Act 1985* provides that a foreign state is not immune from execution in respect of a judgment debt if the property against which execution is sought is property used or intended to be used for commercial purposes. While the specific property targeted for execution was not detailed, the Court found that the debt itself arose from a commercial transaction, and the Act did not require the property to be located in Australia or to be directly connected to the commercial activity that gave rise to the debt. The Court affirmed that the purpose of the Act was to limit sovereign immunity in commercial contexts.

The High Court dismissed the appeal, upholding the Federal Court's decision that Nauru was not immune from execution.