On December 8, 2015, the U.S. Court of Appeals for the Second Circuit (“Second Circuit”) issued its decision in In re Arab Bank, PLC Alien Tort Statute Litigation, which involved claims brought against Arab Bank, PLC (“Arab Bank”) under the Alien Tort Statute (“ATS”), a federal statute providing U.S. courts with jurisdiction over foreign plaintiffs’ tort claims asserting a violation of international law or a treaty to which the United States is party.
The Arab Bank decision represents the first time the Second Circuit has expressly re-examined its ATS jurisprudence since the Supreme Court’s decision in Kiobel v. Royal Dutch Petroleum Co. (“Kiobel II”), which clarified and narrowed the scope of jurisdiction under the ATS by holding that the ATS only confers jurisdiction upon claims based upon conduct taking place, at least in part, in the United States. In the wake of Kiobel II, however, there remained some uncertainty as to the status of the Second Circuit decision that it affirmed (“Kiobel I”), as Kiobel II affirmed on grounds different than those underpinning the Second Circuit’s decision – specifically, that the ATS did not permit claims against corporate defendants.
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