The Commercial Office of Spain hired Enrique Segni to develop a market for Spanish wines in the U.S. Midwest. The Commercial Office is an arm of the Spanish government. Seven months later, Segni was fired, whereupon he filed a lawsuit in a U.S. district court charging that the Commercial Office had breached the contract and seeking payment for the remainder of the contract term as damages. The Commercial Office moved for dismissal, claiming immunity from suit under the terms of the Foreign Sovereign Immunities Act (FSIA).
(a) What are the arguments that Spain is immune from suit under the FSIA?
(b) What are the arguments that Spain is not immune from suit under the FSIA?
(c) Explain which party should prevail.