Kiobel v. Royal Dutch Shell Petroleum (No Corporate Liability Under AlienTort Claims Act)

Order Affirming Motion to Dismiss

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A panel of the court ruled 2-1 on September 17, 2010 that the Alien Tort Statute gives U.S. courts jurisdiction over alleged violations of international law by individuals only, not by corporations.

The decision dismisses claims by a group of Nigerians that Shell aided in the torture and murder of dissidents in Nigeria in the 1990s, including the playwright Ken Saro-Wiwa.

“The principle of individual liability for violations of international law has been limited to natural persons -- not ‘juridical’ persons such as corporations -- because the moral responsibility for a crime so heinous and unbounded as to rise to the level of an ‘international crime’ has rested solely with the individual men and women who have perpetrated it,” Judge Jose Cabranes wrote on behalf of the two-judge majority.

Circuit Judge Pierre N. Leval wrote a separate opinion in which he agreed that the case should be dismissed but disagreed that the Alien Tort Statute applies only to individuals.

“The majority opinion deals a substantial blow to international law and its undertaking to protect fundamental human rights,” he wrote. “According to the rule my colleagues have created, one who earns profits by commercial exploitation of abuse of fundamental human rights can successfully shield those profits from victims’ claims for compensation simply by taking the precaution of conducting the heinous operation in the corporate form.”

He agreed that the case should be dismissed, saying the plaintiffs didn’t properly claim Shell intended to cause the Nigerian government to violate human rights.

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Published In: Business Torts Updates, Civil Remedies Updates, Constitutional Law Updates, International Trade Updates, Toxic Torts Updates

Reference Info:Decision | Federal, 2nd Circuit, New York | United States

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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