Article on "commercial purposes" exception in state immunity (SerVaas v Rafidain Bank) | Practical Law

Article on "commercial purposes" exception in state immunity (SerVaas v Rafidain Bank) | Practical Law

We have published an article on the UK Supreme Court's decision in SerVaas Incorporated v Rafidain Bank and others [2012] UKSC 40, which gives guidance on the scope of the "commercial purposes" exception to immunity from execution.

Article on "commercial purposes" exception in state immunity (SerVaas v Rafidain Bank)

Practical Law UK Legal Update 2-521-2519 (Approx. 3 pages)

Article on "commercial purposes" exception in state immunity (SerVaas v Rafidain Bank)

by PLC Arbitration
Published on 05 Sep 2012England, Wales
We have published an article on the UK Supreme Court's decision in SerVaas Incorporated v Rafidain Bank and others [2012] UKSC 40, which gives guidance on the scope of the "commercial purposes" exception to immunity from execution.
We have published Article, UK Supreme Court clarifies "commercial purposes" exception to state immunity: when enforcing against property, its origin is irrelevant, authored by Joanne Greenaway at Herbert Smith LLP. In SerVaas, the UK Supreme Court considered the application of the "commercial purposes" exception to immunity from execution in section 13(4) of the State Immunity Act 1978 in the context of an application for a third party debt order for the payment of state assets. The court confirmed that, when considering whether property is "in use or intended for use for commercial purposes", the origin of the property is irrelevant. It is necessary to examine the use to which the state has chosen to put the property and any intended future use. The decision demonstrates the limitations of the "commercial purposes" exception and the need to give careful consideration to the purpose of the assets against which execution is, or might be, sought, preferably at the stage of entering into the contract.