By Jonathan Stempel
WASHINGTON, Oct 1 (Reuters) - The U.S. Supreme Court seemed
skeptical on Monday of allowing victims of human rights abuses
to sue in American courts against the foreign corporations
accused of aiding in the atrocities.
But in oral arguments in one of the court's biggest human
rights cases in years, some justices suggested they might not
close U.S. courts to similar claims against individuals,
including those who take refuge in the United States, or to
claims involving U.S. companies.
In the case, the first of the court's new term, 12 Nigerians
accused Anglo-Dutch oil company Royal Dutch Shell Plc
of complicity in a violent crackdown on protesters by military
ruler Sani Abacha from 1992 to 1995.
Esther Kiobel filed her suit in 2002 on behalf of victims
including her husband, Barinem, who was executed in 1995.
Her case was based on a 1789 law known as the Alien Tort
Statute that had been dormant for nearly two centuries before
lawyers began using it in the 1980s to bring international human
rights cases in U.S. courts.
The Supreme Court heard arguments in February over whether
the Alien Tort Statute could apply to corporations, and later
expanded the case to consider whether the law could be invoked
in similar cases against anyone.
Justice Anthony Kennedy, often a swing vote, asked Kiobel's
lawyer Paul Hoffman whether there was a connection between
events in Nigeria and matters "that commenced in the United
States or that are closely related to the United States."
Kennedy expressed concern that if U.S. courts were to assert
jurisdiction, this could expose U.S. corporations to similar
lawsuits in other countries.
Hoffman countered: "It is possible the plaintiffs could have
sued in other places. They sued here because this is where they
live."
But Justice Samuel Alito questioned, as he had in February,
why that was appropriate, after Hoffman agreed that British and
Dutch courts could have fairly judged the Nigerian plaintiffs'
claims.
"Well, if that's so," Alito said, "why does this case belong
in the courts of the United States when it has nothing to do
with the United States other than the fact that a subsidiary of
the defendant has a big operation here?"
Kathleen Sullivan, a lawyer arguing for Royal Dutch
Petroleum, stressed Alito's concern.
"This case has nothing to do with the United States," she
said. By opening U.S. courts to similar lawsuits regardless of
the place of alleged misconduct, other nations might see fit to
use their courts in the same manner.
PIRACY
Several justices questioned whether Shell's position,
supported by other companies including Coca-Cola Co and
mining giant Rio Tinto Plc, might rule out the use of U.S.
courts for other types of crimes, such as piracy.
Justice Sonia Sotomayor said piracy would have "without
question" been considered a violation of international norms in
1789.
Sotomayor also appeared receptive to an argument by the
European Commission that the United States could be the court of
last resort in cases known as "foreign-cubed cases" involving
actions by a foreign corporation conducted outside the United
States in the aid of a foreign country.
"It seems to me like a fairly simple set of rules clearly
defined and limiting the application of this statute in a way
that sort of makes sense," she told Hoffman.
More than 150 lawsuits accusing U.S. and foreign
corporations of wrongdoing in more than 60 foreign countries
have been filed in U.S. courts in the last two decades,
according to the U.S. Chamber of Commerce.
Many companies settle to avoid costs and publicity.
The Obama administration argued that the Alien Tort Statute
would not apply in foreign-cubed cases, but could apply
elsewhere.
Solicitor General Donald Verrilli said limiting the law's
use would help the United States balance interests including
avoiding friction with foreign companies, helping U.S. companies
avoid possible liability abroad, and promoting human rights.
Justice Antonin Scalia, however, observed that prior
administrations had taken more expansive views of the protection
and future administrations might also adopt a different view.
HIGH-PROFILE CASES
A tearful Esther Kiobel attended the court session and was
among 20 protesters outside the courthouse on Monday.
Now 48 and living in Dallas, she had first brought the case
in 2002, two years before she said she became a U.S. citizen.
"My situation is terrible," she said in an interview. "This
country brought me here as a refugee. They saved me from being
killed. That's why we want our case here. Right now, I don't
feel safe in Nigeria."
The Kiobel case is the first high-profile case for the court
in its new nine-month term, and there was no reference to the
fireworks that ended the last term, when the court in June
upheld most of President Barack Obama's health care overhaul.
Next week, the court will hear a challenge to affirmative
action at the University of Texas at Austin. It is also
considered likely during the current term, which ends in June,
to review cases involving same sex marriage and voting rights.
Still, of the cases the court has taken so far, Pepperdine
University law professor Douglas Kmiec said, "Kiobel raises
perhaps the largest question of them all: the relationship
between America and the world."
The case is Kiobel v. Royal Dutch Petroleum Co, U.S. Supreme
Court, No. 10-1491.
(Additional reporting by Joan Biskupic and Ian Simpson)
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