Senghor v International Bank for West Africa and Senegal
| Jurisdiction | France |
| Date | 09 octobre 1990 |
| Court | Court of Cassation (France) |
(Camille Bernard, President; Lemontey, Rapporteur; Sadon, Advocate-General)
State immunity Jurisdictional immunity State-controlled body Breach of contract resulting in default by private party under bank credit Claim by private party for indemnity from foreign State for failure to prevent breach of contract by State-controlled body Whether foreign State entitled to jurisdictional immunity Whether foreign State acting as sovereign power The law of France
Summary:The facts:A French company, INTRAF, whose managing director was Mr Senghor, entered into a contract for promotion and public relations with a State-controlled Senegalese company, SOFIDAK, which was organizing an international fair in Dakar. The contract provided for monthly payments. On the strength of this contract, Mr Senghor obtained an open credit from the International Bank for West Africa (BIAO). In 1976, SOFIDAK repudiated the contract, despite the intervention of the Senegalese Minister of Finance demanding its retention in force. BIAO then instituted proceedings before the French courts against Mr Senghor for repayment of the funds advanced.
The Court of Appeal of Paris made an order against Mr Senghor for the payment sought and rejected his claim for an indemnity against the State of Senegal as inadmissible. Mr Senghor appealed to the Court of Cassation.
Held:The appeal was dismissed.
The intervention of a State in the performance of a contract governed exclusively by private law, in order to demand the continuation in force of that contract by a contracting legal body controlled by that State, was necessarily an act of sovereign power (puissance publique) governed by jurisdictional immunity. Accordingly, any claim against the State for an indemnity was inadmissible.
The following is the text of the judgment of the Court:
According to the findings of the judges of first instance, the French company Socit d'tudes et de relations internationales pour le dveloppement en l'Afrique (INTRAF), whose managing director is Mr Jean-Gabriel Senghor, was granted an open credit in Dakar by the International Bank for West Africa (BIAO) of Senegal, to provide advances against monthly payments on a contract for promotion and public relations concluded on 15 March 1976 with the Socit de la foire internationale de Dakar (SOFIDAK). This contract was repudiated on 20 August 1976, despite...
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