In the Courts

Supreme Court Limits the Ability of Victims of Extraterritorial Rights Violations to Sue in Federal Courts

On April 17, 2013, the United States Supreme Court unanimously affirmed the decision of the Second Circuit in Kiobel v. Royal Dutch Petroleum Co., 621 F.3d 111 (2nd Cir. 2010). Kiobel v. Royal Dutch Petroleum Co., 133 S. Ct. 1659 (2013). The Court held that the presumption against the extraterritorial application of U.S. law applies to claims under the Alien Tort Statute (ATS), and that nothing in the text, history, or purposes of the statute rebuts that presumption. Id. at 1659. The ATS allows aliens to bring tort actions for violations of customary international law including war crimes and crimes against humanity.

In the Kiobel case, Nigerian nationals filed a complaint in federal court alleging jurisdiction under the ATS against Royal Dutch Petroleum Company and Shell Transport and Trading Company for the actions of its joint subsidiary Shell Petroleum Development Company of Nigeria (SPDC) in Ogoniland, Nigeria. In the early 1990s, the corporation allegedly enlisted the Nigerian government to suppress demonstrations from Ognoli residents concerning the environmental effects of SPDC's practices. Kiobel, 133 S. Ct., at 1662. This resulted in military and police forces attacking Ogoni villages, beating, raping, killing, and arresting residents and destroying or looting property. Id. The petitioners asserted that the respondents violated the law of nations by aiding and abetting the Nigerian government in committing extrajudicial killings, crimes against humanity, torture and cruel treatment, arbitrary arrest and detention, violations of the rights to life, liberty, security, and association, forced exile, and property destruction. Id. at 1663.

The district court dismissed four of the claims for failure to state claims under the law of nations and denied the respondent's motion to dismiss for the remaining claims. Kiobel v. Royal Dutch Petroleum Co., 456 F. Supp. 2d 457 (S.D.N.Y. 2006). On appeal, the Second Circuit dismissed the entire complaint reasoning that the law of nations does not recognize corporate liability. Kiobel v. Royal Dutch Petroleum Co., 621 F.3d 111 (2nd Cir. 2010). The Supreme Court granted certiorari to address “whether and under what circumstances courts may recognize a cause of action under the Alien Torts Statute, for violations of the law of nations occurring within the territory of a sovereign other than the United States.” Kiobel, 133 S. Ct. 1659 (2013).

In the Courts and Business Crimes Hotline were written by Diego Ortega, a summer associate at Kirkland & Ellis LLP, Washington, DC.

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Supreme Court Limits the Ability of Victims of Extraterritorial Rights Violations to Sue in Federal Courts

On April 17, 2013, the United States Supreme Court unanimously affirmed the decision of the Second Circuit in Kiobel v. Royal Dutch Petroleum Co. , 621 F.3d 111 (2nd Cir. 2010). Kiobel v. Royal Dutch Petroleum Co. , 133 S. Ct. 1659 (2013). The Court held that the presumption against the extraterritorial application of U.S. law applies to claims under the Alien Tort Statute (ATS), and that nothing in the text, history, or purposes of the statute rebuts that presumption. Id. at 1659. The ATS allows aliens to bring tort actions for violations of customary international law including war crimes and crimes against humanity.

In the Kiobel case, Nigerian nationals filed a complaint in federal court alleging jurisdiction under the ATS against Royal Dutch Petroleum Company and Shell Transport and Trading Company for the actions of its joint subsidiary Shell Petroleum Development Company of Nigeria (SPDC) in Ogoniland, Nigeria. In the early 1990s, the corporation allegedly enlisted the Nigerian government to suppress demonstrations from Ognoli residents concerning the environmental effects of SPDC's practices. Kiobel, 133 S. Ct., at 1662. This resulted in military and police forces attacking Ogoni villages, beating, raping, killing, and arresting residents and destroying or looting property. Id. The petitioners asserted that the respondents violated the law of nations by aiding and abetting the Nigerian government in committing extrajudicial killings, crimes against humanity, torture and cruel treatment, arbitrary arrest and detention, violations of the rights to life, liberty, security, and association, forced exile, and property destruction. Id. at 1663.

The district court dismissed four of the claims for failure to state claims under the law of nations and denied the respondent's motion to dismiss for the remaining claims. Kiobel v. Royal Dutch Petroleum Co. , 456 F. Supp. 2d 457 (S.D.N.Y. 2006). On appeal, the Second Circuit dismissed the entire complaint reasoning that the law of nations does not recognize corporate liability. Kiobel v. Royal Dutch Petroleum Co. , 621 F.3d 111 (2nd Cir. 2010). The Supreme Court granted certiorari to address “whether and under what circumstances courts may recognize a cause of action under the Alien Torts Statute, for violations of the law of nations occurring within the territory of a sovereign other than the United States.” Kiobel, 133 S. Ct. 1659 (2013).

In the Courts and Business Crimes Hotline were written by Diego Ortega, a summer associate at Kirkland & Ellis LLP, Washington, DC.

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