United States Sixth Circuit

The mere act of including an American company in or excluding an American company from the process of bidding on a contract, where both parties' performance is to occur entirely in a foreign locale, does not produce an immediate consequence in the U.S., and therefore, does not "cause a direct effect in the United States" for purposes of the commercial activity exception to the Foreign Sovereign Immunities Act (FSIA). In a contract action brought by a bidder for a contract to manage cellular telephone networks in Lebanon who was disqualified, dismissal of the action is affirmed where the district court did not err by finding that Lebanon's conduct did not cause a "direct effect" in the U.S., and thus, the commercial activity exception to FSIA immunity did not apply.

Appellate Information

• Decided 08/29/2007
• Published 08/29/2007

Judges

• Before:  RYAN, BATCHELDER, and SUTTON, Circuit Judges.

Court

• United States Sixth Circuit

Counsel

• For Appellees:
  
• ARGUED:  Sheldon L. Miller, Lopatin, Miller, Freedman, Bluestone & Herskovic, Southfield, Michigan, for Appellants.  Carl Rashid, Jr., Butzel Long, Detroit, Michigan, for Appellee.   ON BRIEF:  Sheldon L. Miller, Lopatin, Miller, Freedman, Bluestone & Herskovic, Southfield, Michigan, Mayer Morganroth, Jeffrey B. Morganroth, Morganroth & Morganroth, Southfield, Michigan, for Appellants.  Carl Rashid, Jr., James J. Boutrous, II, Butzel Long, Detroit, Michigan, Michael F. Smith, Butzel Long, Bloomfield Hills, Michigan, for Appellee.