The district court disagreed, reasoning that the FSIA did not exempt foreign governments from suits in which "rights in immovable property situated in the United States are in issue."

The Second Circuit agreed with the district court, adding that the tax obligations owed by India and Mongolia qualified as "rights in immovable property."

Under the FSIA, a foreign government is presumptively immune from suit in federal court unless a specific exception applies.

"[1] The question before the Supreme Court was whether a suit declaring the validity of a tax lien places "rights in immovable property" in issue.

Thus, a suit to declare the validity of a tax lien inquestionably places "rights in immovable property" in issue.