NGO immunity from prosecution

[Kimberly Parker <kimberly.parker@yale.edu>]

I'm reviewing an IMF license and found a new wrinkle in immunity that I
thought I'd share with this community.

In this license (which is otherwise based on the Cox model license) the
International Monetary Fund is claiming immunity from any judicial
process.  I will quote the entire section below.

I had to send this question up our review chain ladder as I'd never
encountered this type of declaration before.  I can't imagine us ever
suing IMF for breach of license, but it was still unusual.  The
arbitration offerings are probably enough to keep us feeling sensible
about this, but I thought I'd offer the statement here for discussion.

--Kimberly Parker

IMF IMMUNITIES

Notwithstanding any other provision of this Agreement, it is understood
that the International Monetary Fund and its assets, property, income and
its operations and transactions are immune from all forms of taxation. It
is further understood that the International Monetary Fund, its property
and its assets are immune from all forms of judicial process. The
immunities of the International Monetary Fund are not waived under this
Agreement.

This Agreement shall be governed by the laws of the District of Columbia,
USA, regardless of the place of physical execution. All claims, demands,
disputes, controversies, and differences arising out of or in connection
with this Agreement shall be settled by arbitration in the District of
Columbia. Upon written notice by a party that a claim or dispute shall be
submitted to arbitration, each party shall appoint an arbitrator, and the
two arbitrators so appointed shall appoint a third arbitrator who shall
act as president of the Tribunal. If the party receiving notice, then the
first arbitrator shall be the sole arbitrator. The Tribunal shall conduct
arbitration according to procedures and standards agreed by the parties
or, in the absence of an applicable agreement, according to the UNCITRAL
Arbitration Rules then in effect, in so far as determined to be relevant
by the Tribunal. Any award or procedural decision of the Tribunal shall,
if necessary, be made by a majority and, in the event that no majority may
be formed, the presiding arbitrator shall proceed as if he were the sole
arbitrator. In the event of default by either party in respect of any
procedural order made by the Tribunal, the Tribunal shall have power to
proceed with the arbitration and to make its award. Unless the Tribunal
decides otherwise in its final award, each party shall pay the costs it
incurred, including attorneys' fees and fees of witnesses, in relation to
the preparation and presentation of its claims or responses in the
arbitral proceedings, and the costs of the conduct of the arbitral
proceedings, including arbitrator's fees, shall be equally shared by the
parties. The award of the Tribunal shall be rendered within thirty (30)
days of the final hearing on the dispute. Such award shall be in writing
and in duplicate, one to be delivered to each party. The arbitral award of
the Tribunal shall be considered final and binding upon the parties. The
submission of a dispute to arbitration shall not be construed as a waiver
of the immunities of the International Monetary Fund.

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Kimberly Parker
Head, Electronic Collections
Yale University Library
130 Wall Street              Voice (203) 432-0067
P.O. Box 208240              Fax (203) 432-8527
New Haven, CT  06520-8240    mailto:kimberly.parker@yale.edu
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