US top court judge questions ramifications of Halkbank case moving forward

WASHINGTON (AA) – A Supreme Court judge questioned on Tuesday whether deciding to allow the prosecution of Turkish state lender Halkbank to proceed would lead to a slew of prosecutions from US states against foreign state-owned firms.

Justice Neil Gorsuch said allowing the prosecution to move forward would pave the way for states to be “free to try to bring lawsuits against Mexico for this or that or perhaps China because of COVID, or who knows what a creative state prosecutor might come up with.”

He made the remarks during an over one-hour hearing in which both prosecutors and attorneys for the Turkish firm presented arguments.

Justice Sonia Sotomayor echoed the concerns, saying “I don't know how I would want to leave to the vagrancies of individual prosecutors, whether it's federal or state, the right to insult another nation by giving them this unbridled power to initiate suits.”

Attorney Lisa Schiavo Blatt, representing Halkbank, asserted in court that it cannot be prosecuted for allegedly helping Iran evade US sanctions, maintaining it has immunity under the 1976 Foreign Sovereign Immunities Act (FSIA).

She maintained that attorneys with the Southern District of New York lack jurisdiction to carry out the prosecution.

Halkbank was indicted in 2019 by a federal grand jury, and has pleaded not guilty.

During the hearing, Halkbank’s attorney was asked whether there was any way to distinguish the bank as a government institution when it comes to the Turkish government’s 51% stake in the commercial enterprise compared to state instiutions.

The Supreme Court, the highest judicial authority in the US, will provide its opinion in writing.

If the court finds Halkbank's application justified and decides in its favor, the case will be dismissed. If it rules against the firm, and upholds the decisions of lower, the case will begin to be taken up in the Southern District of New York.