Thursday, July 1, 2021
On June 17, the U.S. Supreme Court held that U.S. corporations are not liable for alleged abuses against non-U.S. citizens in foreign countries merely because general operational decisions made in the United States contributed to the tortious overseas conduct.
Nestlé USA, Inc. v. Doe I, 593 U.S. (2021)
. At the same time, however, the Court signaled that non-citizens can sue U.S. corporations for violations of international law in principle, even if questions remain about the actual scope of claims that courts may recognize going forward. Meanwhile, as U.S. consumers and investors intensify their own demands for responsible sourcing, sustainability, and transparency in global product and commodity supply chains, the Court’s decision may lead to more pressure on lawmakers, regulators, and corporate boards and officers to advance initiatives that independently address these concerns.
Supreme Court Rejects Human Rights Lawsuit Against U S Corporations, But Leaves Door Open For Future Claims | Beveridge & Diamond PC
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U S Supreme Court requires more than general corporate activity in U S to bring Alien Tort Statute claims | Quinn Emanuel Urquhart & Sullivan, LLP
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Supreme Court slices and dices 1789 law protecting non-citizens
International law in the 21st century has expanded to include the protection of human rights.
In decisions only meant to protect powerful American corporations against federal lawsuits by non-citizens, the Supreme Court has emaciated the Alien Tort Statute, 28 U.S.C. Sec. 1350. “The Alien Tort Statute (ATS) is a U.S. federal law first adopted in 1789 that gives the federal courts jurisdiction to hear lawsuits filed by non-U.S. citizens for torts committed in violation of international law. When the ATS was drafted in the 18th century, international law dealt primarily with regulating diplomatic relations between States and outlawing crimes such as piracy. However, international law in the 21st century has expanded to include the protection of human rights. In the 60 years from the signing of the Universal Declaration of Human Rights in 1948 to the present decade, universal human rights have moved from being an