Saudi Arabia v. Nelson
Citation and Court
507 U.S. 349 (1993), Supreme Court of the United States
Facts
Scott Nelson, an American citizen, was recruited to work at a Saudi government hospital. After reporting safety violations, he was arrested, detained, and allegedly tortured by Saudi government agents. Nelson and his wife sued Saudi Arabia in U.S. federal court, arguing that Saudi Arabia’s commercial recruitment activities gave rise to jurisdiction under the FSIA’s commercial activity exception.
Issue
Whether Saudi Arabia’s arrest and detention of Nelson arose from its commercial activity in recruiting him, triggering the FSIA’s commercial activity exception to sovereign immunity.
Holding
Saudi Arabia’s arrest and torture of Nelson were not commercial activities under the FSIA; the sovereign-immunity exception for commercial activity did not apply because the detention was an exercise of sovereign police authority, not commercial conduct.
Rule / Doctrine
The “based upon” language of the FSIA commercial activity exception requires that the plaintiff’s claim be based upon the commercial activity itself — not merely that commercial activity provided the context for the alleged harm. Sovereign acts such as arrest and detention remain immune even when preceded by commercial recruitment.
Significance
Nelson significantly narrowed the FSIA commercial activity exception by focusing on the nature of the specific act giving rise to the claim rather than the broader transactional context. It remains the leading case on what conduct is “based upon” commercial activity for FSIA purposes.