The United States District Court for the District of Columbia has dismissed a lawsuit filed by Nigerian businessman Ted Iseghohi Edwards and his assignee, Boston Legal Partners Inc., seeking to enforce $159 million in promissory notes issued by the Federal Republic of Nigeria. The court ruled it lacked subject-matter jurisdiction over the claims.
Presiding Judge Colleen Kollar-Kotelly sided with Nigeria, citing the Foreign Sovereign Immunities Act (FSIA), which provides presumptive immunity to foreign nations from lawsuits in US courts. The plaintiffs failed to demonstrate any exceptions to this immunity.
This dismissal marks the second time Edwards’ US enforcement efforts have failed, following a similar ruling in the District of Massachusetts in 2018. The case revolves around the controversial Paris Club debt refund process, through which Nigerian local governments and states received refunds for overpaid foreign debt in the mid-2010s.
Edwards claimed he was entitled to a 10% legal and consultancy fee for facilitating the refunds. When domestic channels failed, he pursued US courts. In 2021, Nigeria’s Debt Management Office issued 10 promissory notes, each worth $15.9 million and totaling $159 million, payable via the Central Bank of Nigeria. Edwards later assigned the notes to Boston Legal Partners Inc.
After the first note matured in October 2022 without payment, Edwards and his assignee filed suit in the District of Columbia in April 2023, naming Nigeria, its Attorney-General, and the Debt Management Office as defendants. Their motion for summary judgment was denied, and Nigeria successfully moved to dismiss the case.
The court emphasized that foreign states enjoy immunity unless plaintiffs prove a valid FSIA exception. Edwards had attempted to invoke the “commercial activity” exception, which requires showing that the foreign state’s actions had a direct effect in the US. The court ruled that the notes’ denomination in US dollars was insufficient to establish jurisdiction.
Culled : Premiumtimes