Waiver of sovereign immunity: Overview, definition, and example
What is a waiver of sovereign immunity?
A waiver of sovereign immunity refers to the voluntary relinquishment or surrender of the legal doctrine of sovereign immunity, which generally protects government entities or sovereign states from being sued without their consent. Sovereign immunity ensures that a government cannot be taken to court unless it agrees to be sued. A waiver of sovereign immunity occurs when a government or sovereign entity explicitly agrees to waive this protection and allows itself to be sued under certain circumstances.
For example, a government might waive sovereign immunity in a contract or agreement, allowing private parties to file lawsuits related to breaches or disputes under that contract.
Why is a waiver of sovereign immunity important?
A waiver of sovereign immunity is important because it provides a means for individuals or entities to seek legal recourse against a government or sovereign entity when they believe they have been wronged. Without such a waiver, governments can generally avoid being sued, which can limit accountability and remedies for affected parties. A waiver is often necessary in business transactions, international agreements, or situations where government action has caused harm to individuals or organizations.
For businesses and individuals, a waiver of sovereign immunity ensures that there is a legal path to resolve disputes and hold governments accountable, especially in contract or property disputes.
Understanding waiver of sovereign immunity through an example
Imagine a private company enters into a contract with a foreign government for the construction of a public infrastructure project. The contract includes a provision that waives the government’s sovereign immunity, meaning the company can sue the government in case of a breach or failure to meet contractual obligations. Without this waiver, the company would not be able to pursue legal action against the government if disputes arose.
In another example, a U.S. state might waive its sovereign immunity in a contract with a vendor, agreeing to be sued if it fails to meet certain obligations under the agreement. This waiver gives the vendor legal grounds to pursue a lawsuit for any potential breach of the contract.
An example of a waiver of sovereign immunity clause
Here’s how a waiver of sovereign immunity clause might look in a contract:
“The [Government Entity] hereby waives its sovereign immunity to the extent necessary to allow the [Private Party] to bring a claim, lawsuit, or dispute resolution procedure related to this Agreement. This waiver applies solely to claims arising under this Agreement and does not extend to any other matters or claims beyond the scope of this Agreement.”
Conclusion
A waiver of sovereign immunity is an essential legal provision that allows governments or sovereign entities to be sued under certain conditions. By voluntarily relinquishing the protection of sovereign immunity, governments can be held accountable in court for actions related to specific agreements or disputes. For businesses and individuals, having such a waiver in place ensures that they have a legal avenue for pursuing remedies in case of government wrongdoing or breach of contract.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.