Civil suit over business transactions allowed against foreign gov`t

TOKYO, Feb. 4 Kyodo - A government panel on Wednesday recommended to Justice Minister Eisuke Mori
that business transactions, employment contracts, and seven other issues should
be among areas in which civil lawsuits against foreign governments can be filed
with Japanese courts.
Following the recommendation by the advisory panel to the minister, the Justice
Ministry will seek during the ongoing ordinary Diet session to submit a bill
for a new law that will make clear the rules on such lawsuits.
The move is aimed at addressing business problems from occurring between
Japanese companies and foreign governments amid the increasing globalization of
the economy.
According to the outline of the recommendation, such civil lawsuits could be
filed against foreign governments as well as entities that could be treated
similarly, such as provincial governments or central banks.
The nine issues that can go to court include transactions such as commodity
sales or loan business, employment contracts such as unpaid wages, compensation
claims over traffic accidents or injury cases caused by civil servants of
foreign countries, and infringement of Japanese patents or copyrights.
In principle, states are exempted from being treated as defendants by courts in
foreign countries under international law. But recently it has become common
not to apply the principle in civil lawsuits such as those concerning business
transactions.
Unlike in the United States and Britain which already have domestic laws for
such lawsuits, it has been unclear whether such suits are allowed in Japan.
Under the recommendation, when officials of the foreign government do not
attend court and do not submit preparatory writings, there would be a
four-month grace period between the day when the written complaint is delivered
to them and when a sentence is handed down.
Welfare facilities for embassy members and others are subject to court
enforcement, which would be implemented when the foreign government refuses to
follow the sentence. But embassy buildings and cultural heritages would be
exempted from such actions.
==Kyodo