Pasini v United Mexican States

The High Court of Australia considered an application by Mr Pasini for leave to appeal against a judgment of the Full Federal Court. Mr Pasini sought to enforce a judgment he had obtained in the United States against the United Mexican States. The dispute concerned whether the United Mexican States was amenable to suit in Australian courts for the purpose of enforcing a foreign judgment.

The central legal issue before the High Court was whether the United Mexican States enjoyed sovereign immunity from suit in Australian courts in relation to the enforcement of a foreign judgment. This involved considering the extent to which the common law doctrine of sovereign immunity, as applied in Australia, applied to foreign states seeking to enforce their own judgments or to resist the enforcement of judgments against them.

The High Court, by majority, granted leave to appeal and allowed the appeal. The majority held that the United Mexican States, by commencing proceedings in Australia to enforce a judgment obtained in the United States, had submitted to the jurisdiction of the Australian courts. Therefore, it was not entitled to claim sovereign immunity from suit in relation to those proceedings. The Court affirmed the principle that a foreign state that initiates legal proceedings in Australia thereby waives its immunity from suit in relation to those proceedings.

The High Court ordered that the appeal be allowed, the orders of the Full Federal Court be set aside, and the matter be remitted to the Federal Court for further hearing and determination according to law.