Latest Case: Bugliotti v. Republic of Argentina (Civil Procedure)

The Perils of Relying on the Wrong Clause—Grounding the Ministerial Exception at the Supreme Court

IRA C. LUPU, ROBERT TUTTLE

GW Law professors Ira C. Lupu and Robert W. Tuttle explain why the path the U.S. Supreme Court is taking in ministerial exception cases—relying on the Free Exercise Clause of the First Amendment—is dangerously misguided. Lupu and Tuttle argue that the ministerial exception rests primarily on the Establishment Clause and is strictly limited to employment decisions about who leads or controls a faith community, or who transmits a faith.

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Bugliotti v. Republic of Argentina

Docket: 19-379

Opinion Date: March 17, 2020

Judge: Per Curiam

Areas of Law: Civil Procedure, International Law

Plaintiffs filed suit seeking to recover unpaid principal amounts of defaulted Argentine sovereign debt. Plaintiffs are subscribers to the Republic of Argentina's 1994 sovereign debt offering who enrolled their bonds in a governmental tax‐credit program just prior to Argentina's 2001 default on the bonds. On appeal, plaintiffs challenged the district court's dismissal of their complaint on multiple alternative grounds. The Second Circuit held that the relevant question is not whether plaintiffs "own" the bonds but whether they may sue to enforce them. Moreover, the court held that, although the court has discretion under Federal Rule of Civil Procedure 44.1 to decide the relevant question of Argentine law in the first instance, the court also has discretion to remand so that the district court — which is better situated in these circumstances to implement Rule 44.1's flexible procedures for determining foreign law — may do so. Furthermore, the court did not think that the district court's reliance on the doctrine of adjudicative international comity as an alternative ground for dismissal was appropriate in these circumstances. Therefore, the court vacated the district court's dismissal of plaintiffs' damages claim. However, the court affirmed the dismissal of plaintiffs' claim for injunctive relief.