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Prior History: 2008 WL 2946059 (W.D. Tex.) (July 25, 2008) [USA], noted in 2009 Annual Review at 510.

Note: In connection with contractual agreements to repair and maintain F-5 fighter jets for the Royal Saudi Arabian Air Force, the Kingdom of Saudi Arabia was required to maintain an LC to effect payment. In order to draw on the LC, the Vendor, LSI, was required to submit and receive approval of an invoice. When the Kingdom decided to replace the Vendor, the Vendor still held in storage parts that had been ordered by the Saudi Air Force and stored by Vendor. Payment was also outstanding on the parts because Vendor had been unable to obtain approval for its invoices for their cost. In addition, the Kingdom refused to release a performance bond issued on behalf of Vendor in the amount of US$5,600,000.00 and froze Vendor's receivables in Saudi Arabia although the Vendor was unable to obtain verification of the freeze.

When Vendor sued the Kingdom in the U.S. District Court for the Western District of Texas for breach of contract, the Kingdom moved to dismiss on the basis of the Foreign Sovereign Immunities Act (FSIA), a U.S. statute protecting foreign sovereigns from suit, and the doctrine of forum non conveniens. The U.S. District Court for the Western District of Texas, Furgeson, J., denied the motion, No. SA-04- CA-1008-WRF, 2008 WL 2946059 (W.D. Tex.) (July 25, 2008), abstracted at 2009 Annual Review 510. On appeal, the US Court of Appeals for the Fifth Circuit, Davis, Owen, and Hayes, J.J., in an opinion by Davis, J., reversed with respect to the Technical Support Contract and otherwise affirmed.

[JEB/kpr]

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