Top court allows lawsuits on U.N. property taxes

Legal News Center

[##_1L|1331624806.jpg|width="120" height="91" alt=""|_##]The U.S. Supreme Court ruled on Thursday that foreign governments can be sued in an effort to collect unpaid local property taxes on residences for their diplomats at the United Nations. The high court, by a 7-2 vote, sided with New York City and ruled the foreign governments are not shielded from such lawsuits on sovereign immunity grounds.

The case involved the city's efforts to collect $16.4 million in unpaid property taxes and interest from India and $2.1 million from Mongolia for their missions at the United Nations.

Under New York law, foreign governments have tax exemptions for the diplomatic mission section of their properties used exclusively for diplomatic offices and for the quarters of certain diplomats.

But the city says the government must pay taxes for the space that houses lower-level employees. The two governments refused to pay the taxes and the city sued. The foreign governments sought to dismiss the lawsuits.

Justice Clarence Thomas concluded in the court's majority opinion that the two foreign governments are not immune from the lawsuits under a 1976 federal law, a decision that allows the cases to go forward.

Justices John Paul Stevens and Stephen Breyer dissented. "If Congress had intended the statute to waive sovereign immunity in tax litigation, I think it would have said so," Stevens wrote.

Related listings

  • House Dems Target Court's Pay Ruling

    House Dems Target Court's Pay Ruling

    Legal News Center 06/13/2007

    [##_1L|1345683955.jpg|width="130" height="93" alt=""|_##]The time limit for suing a company for pay discrimination should restart each time an employee gets a reduced paycheck, House Democrats said Tuesday, taking issue with a recent Supreme Court de...

  • Top court rules against Philip Morris

    Top court rules against Philip Morris

    Legal News Center 06/11/2007

    [##_1L|1054958485.jpg|width="131" height="91" alt=""|_##]The U.S. Supreme Court ruled on Monday that a class-action lawsuit against Philip Morris USA, a unit of Altria Group Inc. (MO.N: Quote, Profile , Research), should not be decided in federal cou...

  • US quarantine laws need updating: CDC director

    US quarantine laws need updating: CDC director

    Legal News Center 06/08/2007

    [##_1L|1038012628.jpg|width="130" height="93" alt=""|_##]Dr. Julie Gerberding, Director of the Centers for Disease Control and Prevention (CDC) and Administrator of the Agency for Toxic Substances and Disease Registry (ATSDR), testified  before ...

New York Commercial Litigation Law Firm - Woods Lonergan PLLC

Founded in 1993 by Managing Partner James F. Woods, Woods Lonergan PLLC has built a strong reputation as a resourceful and industrious firm that provides clients with clear, concise, and straightforward answers to their most challenging legal issues. Partner Lawrence R. Lonergan, who joined the firm in 2008, has been a friend and colleague to Mr. Woods for over 40 years and shares the same business philosophy. Woods Lonergan PLLC’s collective experience and expertise enables the firm to expeditiously and effectively analyze the increasing challenges clients face in an evolving business and legal world, in many instances, avoiding unnecessary time and expense to our clients. Our mission is simple: provide cutting-edge expertise and sound advice in select areas of the law for corporate and business clients. We thrive on providing each client with personalized attention, forceful representation, and a collaborative team effort that embraces collective knowledge.

Business News

New York & New Jersey Family Law Matters We represent our clients in all types of proceedings that include termination of parental rights. >> read