It is now commonplace for companies with international operations to be drawn into the U.S. courts to resolve commercial disputes arising out of events occurring far beyond the borders of the United States. However, companies increasingly are having to litigate here issues concerning their alleged participation in violations of international law. In recent years, the Alien Tort Claims Act (an obscure U.S. statute that had remained essentially unused for more than 200 years) has been utilized by many non-U.S. plaintiffs to file U.S. lawsuits against companies, alleging that those corporations are responsible for human rights-related violations occurring outside the U.S.
Over the last few months, in particular, there have been several important events in U.S. courts concerning cases under the Alien Tort Claims Act (also know as the Alien Tort Statute or Alien Tort Act), which highlight some important themes in this area and may provide some guideposts for companies facing these lawsuits in the future. For example, the recent, highly publicized $15.5 million settlement of one such case filed against Royal Dutch Shell concerning its activities in Nigeria may prove to increase the number of such suits filed in the U.S. At the other end of the spectrum, however, federal courts across the country have issued several key decisions upholding dismissal of cases filed under the act and may provide companies with additional ammunition to fight these suits.
