An entity which is constituted in such a way that its purpose is to assist, promote and advance the industrial development, prosperity and economic welfare of the area in which it operates, can be seen as effectively carrying out government policy in the way that a government department does and therefore to assume the position of an organ of government. The New Brunswick Development Corporation was an arm or the alter ego of the Government of New Brunswick which was a sovereign state and so it was entitled to immunity from suits in the courts of this country. A state within a federal state may in certain circumstances partake of the sovereignty of the state as a whole and obtain State Immunity. Against the background of the 1872 Act, the mere fact that New Brunswick did not have control over international relations did not mean that for that reason alone that it could not be entitled to state immunity.
Lord Denning MR: ‘It was suggested by Mr Kempster that the Province of New Brunswick does not qualify as a sovereign state so as to invoke the doctrine of sovereign immunity. But the authorities show decisively the contrary. The British North America Act 1867 gave Canada a federal constitution. Under it the powers of government were divided between the dominion government and the provincial governments. Some of those powers were vested in the dominion government. The rest remained with the provincial governments. Each provincial government, within its own sphere, retained its independence and autonomy directly under the Crown. The Crown is sovereign in New Brunswick for provincial powers, just as it is sovereign in Canada for dominion powers: see Liquidators of the Maritime Bank of Canada v Receiver-General of New Brunswick [1892] A.C. 437. It follows that the province of New Brunswick is a sovereign state in its own right, and entitled, if it so wishes, to claim sovereign immunity’.
Salmon LJ: ‘There can be no doubt I think, that the Federal Government of New Brunswick is sovereign within its own sphere of influence. That appears from the Liquidators of the Maritime Bank of Canada v Receiver General New Brunswick [1892] AC437 and also from Hodge v The Queen (1883) 9 App Cas 132). ‘
Judges:
Lord Denning MR, Salmon LJ, Phillimore LJ
Citations:
[1971] 1 WLR 604, [1971] 2 All ER 593
Statutes:
British North America Act 1867
Jurisdiction:
England and Wales
Cited by:
Cited – Alamieyeseigha, Regina (on the Application Of) v Crown Prosecution Service Admn 25-Nov-2005
The defendant argued that as Governor and Chief Excecutive of Bayelsa State in Nigeria he had sovereign immunity. The Foreign Office had issued a certificate that the defendant was not a Head of States under the 1978 Act. The A-G of Bayelsa had . .
Cited – Kensington International Ltd v Republic of the Congo; Glencore Energy UK Limited, Sphynx UK Limited, Sphynx (BDA) Limited, Africa Oil and Gas Corporation, Cotrade SA (Third Parties) ComC 28-Nov-2005
The claimant had taken an assignment of debts owed by the defendant, and obtained judgment in US$121m. They sought to enforce the judgment and obtained third party debt orders against the parties listed.
Held: Officers in the third party . .
Lists of cited by and citing cases may be incomplete.
Crime, International
Updated: 08 April 2022; Ref: scu.235345
