Contract Dispute With United Nations Could Lead to End of Diplomatic Immunity
May 24, 2011
New York federal judge issued an order that may lift the UN’s long recognized diplomatic immunity for matters involving contract disputes. This may open up claims involving “hundreds of millions of dollars” against the world body. The Wall Street Journal and the New York Times will publish legal notices on behalf of a Turkish billionaire for a $150 million claim against the UN Development Program. This will serve as a substitute process of service since the UN refuses to accept authority of US courts in all legal matters.
This could open up the floodgates to hundreds of similar lawsuits as “It is not unusual for the U.N. to play these kinds of games with contractors. They try to frustrate them at every turn so they give up and go away, he said. But because those contractors would now have access to the courts, the amounts the U.N. could be forced to pay could amount to hundreds of millions of dollars in claims.”