Justia International Law Opinion Summaries

Articles Posted in U.S. Supreme Court
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An investment treaty between the U.K. and Argentina authorizes a party to submit a dispute to “the competent tribunal of the Contracting Party in whose territory the investment was made,” and permits arbitration if, 18 months after such submission, the tribunal has not made a final decision. BG, a British firm, had an interest in MetroGAS, an Argentine entity licensed to distribute natural gas in Buenos Aires. At the time of BG’s investment, Argentine law provided that gas tariffs would be calculated in U.S. dollars and would be set at levels sufficient to assure gas distribution firms a reasonable return. Argentina later changed the calculation basis to pesos. Profits became losses. BG sought arbitration, which was conducted in Washington, D. C. BG claimed that Argentina had violated the Treaty, which forbids expropriation of investments and requires each nation to give investors fair and equitable treatment. Argentina denied the claims and argued that the arbitrators lacked jurisdiction because BG had not complied with the local litigation requirement. The arbitration panel concluded that Argentina’s enactment of laws that hindered recourse to its judiciary excused compliance and that Argentina had not expropriated BG’s investment but had denied fair and equitable treatment. The district court confirmed the award. The District of Columbia Circuit vacated, holding that the arbitrators lacked jurisdiction. The Supreme Court reversed. The local litigation requirement was a matter for arbitrators to interpret and apply; courts should review that interpretation with deference. Courts presume that the parties intended arbitrators to decide disputes about application of procedural preconditions to arbitration, including claims of waiver, delay, defense to arbitrability, time limits, notice, laches, or estoppel. The provision is procedural; it determines when the contractual duty to arbitrate arises, not whether there is a duty to arbitrate. It is a claims-processing rule. The fact that contract is a treaty does not make a difference. The Treaty contains no evidence that the parties had intentions contrary to the ordinary presumptions about who should decide threshold arbitration issues. View "BG Group plc v. Republic of Argentina" on Justia Law

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Residents of Argentina sued Daimler, a German company, in a California federal district court, alleging that Mercedes-Benz Argentina, a Daimler subsidiary, collaborated with state security forces during Argentina’s 1976–1983 “Dirty War” to kidnap, detain, torture, and kill MB Argentina workers, related to the plaintiffs. They asserted claims under the Alien Tort Statute and the Torture Victim Protection Act of 1991, and under California and Argentina law. Personal jurisdiction was predicated on the California contacts of Mercedes-Benz USA (MBUSA), another Daimler subsidiary, incorporated in Delaware with its principal place of business in New Jersey. MBUSA distributes Daimler-manufactured vehicles to independent U.S. dealerships, including some in California. The district court dismissed. The Ninth Circuit reversed, holding that MBUSA, which it assumed to fall within the California courts’ all-purpose jurisdiction, was Daimler’s “agent” for jurisdictional purposes. The Supreme Court reversed. Daimler is not amenable to suit in California for injuries allegedly caused by MB Argentina outside the U.S. California’s long-arm statute allows the exercise of personal jurisdiction to the full extent permissible under the U. S. Constitution. Even if California is home to MBUSA, Daimler’s affiliations with California are not sufficient to subject it to the general jurisdiction of that State’s courts. The proper inquiry is whether a foreign corporation’s “affiliations with the State are so ‘continuous and systematic’ as to render [it] essentially at home in the forum State.” Neither Daimler nor MBUSA is incorporated in California; neither has its principal place of business there. If Daimler’s California activities sufficed to allow adjudication of this case in California, the same global reach would presumably be available in every other state in which MBUSA’s sales are sizable. View "Daimler AG v. Bauman" on Justia Law

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In 1997, the United Kingdom imposed a one-time “windfall tax” on 32 U. K. companies privatized between 1984 and 1996 by the Conservative government. The companies had been sold to private parties through an initial sale of shares, known as “flotation.” Many of the companies became more efficient and earned substantial profits in the process. PPL, part owner of a privatized company, claimed a credit for its share of the bill in its 1997 federal income-tax return, relying on IRC section 901(b)(1), which states that any “income, war profits, and excess profits taxes” paid overseas are creditable against U. S. income taxes. Treasury Regulation 1.901–2(a)(1) states that a foreign tax is creditable if its “predominant character” “is that of an income tax in the U. S. sense.” The IRS rejected PPL’s claim, but the Tax Court held that the U. K. windfall tax was creditable. The Third Circuit reversed. A unanimous Supreme Court reversed, holding that the U. K. tax is creditable under section 901. Creditability depends on whether the tax, if enacted in the U. S., would be an income, war profits, or excess profits tax. A tax’s predominant character is that of an income tax “[i]f ... the foreign tax is likely to reach net gain in the normal circumstances in which it applies.” The windfall tax’s predominant character is that of an excess profits tax, a category of income tax in the U. S. sense. The Labour government’s conception of “profit-making value” as a backward¬-looking analysis of historic profits is not a typical valuation method; it is a tax on realized net income disguised as a tax on the difference between two values, one of which is a fictitious value calculated using an imputed price-to-earnings ratio. The windfall tax is economically equivalent to the difference between the profits each company actually earned and the amount the Labour government believed it should have earned given its flotation value. For most companies, the substantive effect was a 51.71 percent tax on all profits above a threshold, “a classic excess profits tax.” View "PPL Corp. v. Comm'r of Internal Revenue" on Justia Law

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Nigerian nationals, having been granted asylum in the U.S., filed suit under the Alien Tort Statute (ATS), alleging that Dutch, British, and Nigerian corporations aided and abetted the Nigerian Government in committing violations of the law of nations in Nigeria. The complaint alleges that in the 1990s Nigerian government forces attacked villages, beating, raping, killing, and arresting residents and destroying or looting property and that the corporations provided food, transportation, compensation, and a staging ground. The ATS provides that “district courts shall have original jurisdiction of any civil action by an alien for a tort only, committed in violation of the law of nations or a treaty of the United States,” 28 U. S. C. 1350. On interlocutory appeal, the Second Circuit dismissed, holding that the law of nations does not recognize corporate liability. The Supreme Court affirmed. The presumption against extraterritoriality applies to ATS claims. The danger of unwarranted judicial interference in foreign policy is magnified where the question is not what Congress has done but what courts may do. Nothing in the ATS indicates extraterritorial reach. Violations of the law of nations affecting aliens can occur either within or outside the United States. The question is whether the court has authority to recognize a cause of action under U. S. law to enforce a norm of international law. There is no indication that Congress expected causes of action to be brought under the statute for violations of the law of nations occurring abroad. View "Kiobel v. Royal Dutch Petroleum Co." on Justia Law

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Wiley, an academic publisher, often assigns to its foreign subsidiary (WileyAsia) rights to publish, print, and sell Wiley’s English language textbooks abroad. WileyAsia’s books state that they are not to be taken (without permission) into the U.S. When Kirtsaeng moved to the U.S., he asked friends to buy foreign edition English-language textbooks in Thai book shops, where they sold at low prices, and mail them to him. He sold the books at a profit. Wiley claimed that Kirtsaeng’s unauthorized importation and resale was an infringement of Wiley’s 17 U.S.C. 106(3) exclusive rights to distribute its copyrighted work and section 602’s import prohibition. Kirtsaeng cited section 109(a)’s “first sale” doctrine, which provides that “the owner of a particular copy or phonorecord lawfully made under this title ... is entitled, without the authority of the copyright owner, to sell or otherwise dispose of the possession of that copy or phonorecord.” The district court held that the defense did not apply to goods manufactured abroad. The jury found that Kirtsaeng had willfully infringed Wiley’s American copyrights and assessed damages. The Second Circuit affirmed, concluding that section 109(a)’s “lawfully made under this title” language indicated that the “first sale” doctrine does not apply to copies of American copyrighted works manufactured abroad. The Supreme Court reversed; the “first sale” doctrine applies to copies of a copyrighted work lawfully made abroad. Section 109(a) says nothing about geography. A geographical interpretation of the first-sale doctrine could re¬quire libraries to obtain permission before circulating the many books in their collections that were printed overseas; potential practical problems are too serious, extensive, and likely to come about to be dismissed as insignificant—particularly in light of the ever-growing importance of foreign trade to America. View "Kirtsaeng v. John Wiley & Sons, Inc." on Justia Law

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The Foreign Intelligence Surveillance Act,50 U.S.C. 1881a,2008 amendments, permit the Attorney General and the Director of National Intelligence to acquire foreign intelligence information by jointly authorizing surveillance of individuals who are not "United States persons" and are reasonably believed to be located outside the U.S. They normally must first obtain Foreign Intelligence Surveillance Court approval; 1881a surveillance is subject to statutory conditions, congressional supervision, and compliance with the Fourth Amendment. United States persons who claim to engage in sensitive international communications with individuals who they believe are likely targets of surveillance sought a declaration that 1881a is facially unconstitutional and a permanent injunction. The district court found that they lacked standing, but the Second Circuit reversed, holding that they showed an "objectively reasonable likelihood" that their communications will be intercepted in the future and that they suffer present injuries from costly and burdensome measures to protect the confidentiality of their communications. The Supreme Court reversed. The plaintiffs do not have Article III standing, which require an injury that is "concrete, particularized, and actual or imminent; fairly traceable to the challenged action; and redressable by a favorable ruling." Allegations of possible future injury are not sufficient. Plaintiffs’ standing theory rests on a speculative chain of possibilities. The Court stated that it is "reluctant to endorse standing theories that require guesswork as to how independent decision-makers will exercise their judgment." Plaintiffs cannot manufacture standing by choosing to make expenditures based on hypothetical future harm that is not certainly impending. View "Clapper v. Amnesty Int'l USA" on Justia Law

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The Hague Convention on the Civil Aspects of International Child Abduction requires contracting states to order a child returned to her country of habitual residence upon finding that the child has been wrongfully removed to or retained in the contracting state. The International Child Abduction Remedies Act, 42 U. S. C. 11601, implements the Convention. Chafin, a U.S. citizen, married a United Kingdom citizen (mother), in Germany, where they had a daughter, E. C. When Chafin was deployed with the military to Afghanistan, mother took E. C. to Scotland. When Chafin was transferred to Alabama, mother traveled there with E. C. Chafin filed for divorce and custody. Mother filed a petition under the Convention and ICARA. The district court concluded that E. C.’s country of habitual residence was Scotland. In Scotland, mother was granted interim custody and a preliminary injunction prohibiting Chafin from removing E. C. The Eleventh Circuit dismissed Chafin’s appeal as moot. The Supreme Court vacated and remanded. Return of a child to a foreign country does not render appeal of a return order moot. The Chafins continue to contest where their daughter will be raised. Chafin’s claim for re-return cannot be dismissed as so implausible that it is insufficient to preserve jurisdiction; his prospects of success are not pertinent to mootness. Even if Scotland were to ignore a re-return order, U. S. courts would continue to have personal jurisdiction over mother and could command her to take action under threat of sanctions. Enforcement of the order may be uncertain, but that does not typically render cases moot. If cases were to become moot upon return of a child, courts would be more likely to routinely grant stays, to prevent loss of any right to appeal, conflicting with the Convention’s mandate of prompt return. View "Chafin v. Chafin" on Justia Law

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Petitioners sued the Palestinian Authority and the Palestinian Liberation Organization under the Torture Victim Protection Act of 1991 (TVPA), which authorized a cause of action against "[a]n individual" for acts of torture and extrajudicial killing committed under authority or color of law of any foreign nation. The district court dismissed the suit, concluding that the TVPA's authorization of suit against "[a]n individual" extended liability only to natural persons. The United States Court of Appeals for the District of Columbia affirmed. The Court held that, as used in the TVPA, the term "individual" encompassed only natural persons. Consequently, the TVPA did not impose liability against organizations. Therefore, the Court affirmed the judgment of the lower courts. View "Mohamad v. Palestinian Authority" on Justia Law

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Petitioner, a Mexican national, was convicted of murder and sentenced to death by a Texas court. Petitioner sought a stay of execution on the ground that his conviction was obtained in violation of the Vienna Convention on Consular Relations (Vienna Convention), and relied on Case Concerning Avena and Other Mexican Nationals (Avena). The Court held that petitioner's argument was foreclosed by Medellin v. Texas, in which the Court held that neither the Avena decision nor the President's Memorandum purporting to implement that decision constituted directly enforceable federal law. The Court declined to stay the execution so that Congress could consider whether to enact legislation implementing the Avena decision where the Due Process Clause did not prevent a State from carrying out a lawful judgment in light of unenacted legislation that might someday authorize a collateral attack on that judgment. The Court also declined the United State's request that the Court stay the execution until January 2012 in support of "future jurisdiction to review the judgment in a proceeding." Accordingly, the applications for stay of execution was denied and petition for a writ of habeas corpus was denied. View "Leal Garcia v. Texas" on Justia Law