Today the U.S. Supreme Court issued its decision in the Kiobel v. Shell case, limiting the courts’ ability to hear claims of human rights abuses committed abroad.
Lawrence Hurley of Reuters calls the disappointing decision, “a major victory for multinational companies,” adding that “the ruling is a major win for multinationals such as Royal Dutch that do business in the developing world and become embroiled in local political controversies.
“Those companies, which are still subject to lawsuits in foreign courts, fear U.S. courts because of the possibility of large damage awards,” Hurley writes. He goes on to note that, “The ruling is likely to affect other cases, including those involving similar claims against Anglo-Australian mining company Rio Tinto Plc over its conduct in Papua New Guinea; Exxon Mobil Corp over its activity in Indonesia; and Daimler AG concerning alleged abuses in Argentina. The companies have all vigorously contested the claims.”
In its press release, the organization writes, “Today in its decision in Kiobel v. Royal Dutch Petroleum, the Supreme Court gutted the Alien Tort Statute (ATS), a law that has been on the books for more than 200 years and for the last 30 years has been a critical avenue to hold serious human rights violators accountable. In a decision that will undermine the United States’ status as a leader on human rights, the Justices unanimously decided that the victims of the gross human rights violations alleged in this case were not entitled to relief under the ATS. Furthermore, a majority of the Court ruled more broadly that the ATS does not apply to human rights violations committed in other countries.