June 14, 2010
Baker Botts Office

Alien Tort Statute Update

SG Urges Supreme Court Not To Address Corporate Liability Under Alien Tort Statute

The Alien Tort Statute (“ATS”) permits an “alien” to bring suit in U.S. federal court for a violation of international law occurring anywhere in the world. In the past decade, plaintiffs have filed ATS suits against dozens of U.S. multi-national corporations (“MNCs”), alleging that those companies committed human rights violations, or assisted state actors in doing so. For example, MNCs have been sued under the ATS for allegedly providing assistance (by providing goods like computers and vehicles) to South Africa’s apartheid regime, and (by building infrastructure projects like roads and paying oil royalties) to the government of Sudan. In 2004, the Supreme Court urged caution and restraint in recognizing new causes of action under the ATS, but plaintiffs lawyers continue to test the boundaries of the statute against corporations.

The ATS generally requires a showing of state action, and MNCs have argued that the statute does not apply to corporate acts. The Second Circuit, and particularly the District Court for the Southern District of New York, have led the way in rejecting this argument and permitting ATS suits against corporations. In Pfizer v. Abdullahi, the Supreme Court has the opportunity to limit, or at least clarify, the scope of corporate liability under the ATS. The Solicitor General, however, recently asked the Court not to hear the case.

To view the full update, click here.

 

 

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