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Corporations Rest Easy (But Pirates Beware) - The Supreme Court and Alien Torts Statute

Pirates around the world are shaking in fear. 

Pirate
After two years, two oral arguments, and a multitude of briefs, the Supreme Court has finally issued its opinion on the use of the Alien Torts Statute (ATS) in human rights abuse cases. On Wednesday, the court issued a unanimous ruling limiting the rights of foreign victims of human rights violations to bring their claims in US courts.

The court focused on the extraterritoriality of the claims – holding that because the conduct took place outside of the United States, ATS does not apply.

In order to get the unanimous ruling it appeared as if the court crafted their holding very narrowly. Chief Justice Roberts, writing the majority opinion stated “The question here is not whether petitioners have stated a proper claim under ATS, but whether a claim may reach conduct occurring in the territory of a foreign sovereign.” According to the court, it does not. In reaching its decision, the court distinguished between violations of international law (what the court called the law of nations) and violations of international law abroad. As Chief Justice Roberts wrote: “The ATS covers actions by aliens for violations of the law of nations, but that does not imply extraterritorial reach – such violations affecting aliens can occur either within or outside of the United States.”

In addition, the court distinguished the territorial application of one of the original uses of the statute – piracy- from the territorial applications of many of the human rights violations that are litigated underATS (usually on foreign soil). The court stated that

Applying U.S. law to pirates does not typically impose the sovereign will of the United States onto conduct occurring within the territorial jurisdiction of another sovereign, and therefore carries less direct foreign policy consequences. ... We do not think that the existence of a cause of action against them is a sufficient basis for concluding that other causes of action under the ATS reach conduct that does not occur within the territory of another sovereign; pirates may well be a category unto themselves.

As such, the court concluded that having claims brought for conduct that happened in the waters (or on the soil) of another sovereign was going too far.

Justices

Nine justices in black robes can do a lot of damage on the high seas.

However, the court split sharply on other issues raised by the lawsuit: whether a suit could be brought under ATS where at least part of the conduct is alleged to have occurred here and; whether corporations (as opposed to individuals or government representatives) are completely exempt fromATS suits. The court’s opinion also leaves open the status of numerous cases pending in US courts with ATS claims. 

As Justice Kennedy wrote in a concurring opinion “The Opinion for the Court is careful to leave open a number of significant questions regarding the reach and interpretation of the Alien Tort Statute.” Nonetheless, the decision was enough to have the petitioner’s claim dismissed and Shell relieved of liability.

But there is no joy for pirates, for the Court has ruled that out. (with apologies to Casey at the Bat)

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