January 23, 2009 .

Baker Botts Office

Alien Tort Statute Update

Two Recent Appellate Decisions Affect Alien Tort Statute Cases Against Corporations

Two recent opinions from federal courts of appeal provide further guidance to corporations facing Alien Tort Statute (ATS) liability.

The Drummond and Rio Tinto decisions are significant for corporations that do business abroad, though their conclusions pull in different directions. The Drummond court’s holding—that ATS claims may be brought against corporations and may be based on an aiding and abetting theory—leaves the Eleventh Circuit as one of the most plaintiff-friendly jurisdictions for these types of lawsuits. In contrast, the Rio Tinto decision potentially erects another hurdle for plaintiffs who may have to show that they exhausted local remedies and also provides corporate defendants with another defense in their arsenal against ATS claims.

To read the entire update, please click here.

 

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