By Carolyn A. Dubay, Associate Editor,
International Judicial Monitor
In the last several years, the
United States Supreme Court has handed down a number of decisions in
transnational cases that appear to retract the ability of federal and state
courts to entertain cases where the facts giving rise to the claim occurred
entirely abroad, or where the putative defendant has only limited or tangential
connections to the United States. This trend was confirmed in April 2013, when
the Supreme Court handed down its decision in Kiobel v. Royal Dutch Petroleum Co., 133 S. Ct. 1659 (2013). In Kiobel,
the Supreme Court applied the presumption against the extraterritorial
application of American laws to limit the reach of the Alien Tort Statute, 28
U. S. C. §1350 (the ATS). The ATS gives the federal courts subject matter
jurisdiction over tort claims brought by aliens based on violations of the law
of nations. After Kiobel, the ATS may not be used as a vehicle to
litigate claims based on violations of basic human rights that occur abroad and
have no obvious connection to the United States.
In Kiobel, the
plaintiffs, who now reside in the United States, were previously residents in the Niger delta area
of Nigeria known for its oil resources. In the early 1990s, local protests
against oil exploration in the area led to violent clashes with the Nigerian
military and police, whom the plaintiffs accuse of beating, raping, killing,
and arresting local residents and destroying or looting their property. The
defendants in Kiobel included foreign oil companies alleged to have
aided and abetted these atrocities by supplying Nigerian forces with supplies,
compensation and logistical support. Other than the after-the-fact presence of
the named plaintiffs in the United States and the existence of some tenuous
contacts between the defendants’ corporate affiliates and the United States,
the thrust of the lawsuit was to provide remedies for the violation of human
rights that occurred entirely within Nigeria. In deciding Kiobel, the
Supreme Court eluded the initial question presented as to whether corporate
parties could be held liable as accessories to violations of international
human rights law committed by public authorities. Instead, the justices focused
on whether and under what circumstances courts may recognize a cause of action
under the ATS for violations of the law of nations occurring within the
territory of a sovereign other than the United States.
While the focus of the Kiobel decision was on statutory interpretation of the ATS and the
presumption against extraterritoriality in American law, the outcome mirrors in
many ways the general principle of international law limiting the prescriptive
authority of any nation to regulate conduct that occurs outside of its
territorial limits. From an international law perspective, the concept of prescriptive
jurisdiction limits a state’s regulatory powers in a way that recognizes the
power of a nation to assert sovereignty over conduct that occurs within its
territory or is carried out by its nationals, while at the same time limiting
the encroachment of one sovereign’s laws into territories outside its
jurisdiction. Prescriptive jurisdiction is limited, in essence, because
attempting to regulate conduct that occurs in another country raises the
possibility of international conflict and a breakdown of foreign relations. This was one of the major concerns that
the Supreme Court articulated in Kiobel in applying the presumption
against extraterritoriality to the reach of the ATS.
Beyond the conclusion
that American laws are presumptively domestic in reach, the Supreme Court’s
application of extraterritoriality in Kiobel recognized that the
presumption could be overcome by the express intent of Congress. Indeed, the
Supreme Court in Kiobel clearly suggested that Congress could create a
cause of action for extraterritorial violations of international law, such as
under the Torture Victim Protection Act, which creates a cause of action for
aliens who were victims of torture in a foreign nation.