Supreme Court of the United States

Jesner v. Arab Bank, PLC

April 24, 2018584 U.S. 241

Summary

The Court affirmed dismissal of Alien Tort Statute claims against Arab Bank, holding that foreign corporations may not be defendants in ATS suits absent congressional authorization. The Court reasoned that the ATS's separation-of-powers and foreign-relations concerns, the absence of a clearly established international-law norm imposing corporate liability, and Congress's decision to limit the analogous statutory remedy to individuals require courts to defer to the political branches. The judgment was affirmed even though the Court did not decide whether the alleged U.S. contacts independently satisfied the territorial requirements for ATS jurisdiction.

Holding

  • Whether foreign corporations may be defendants in ATS suits. Foreign corporations may not be defendants in suits brought under the Alien Tort Statute absent further action by Congress.
  • The framework governing recognition of ATS common-law actions. Before recognizing an ATS common-law action, courts must first determine whether the alleged violation rests on a specific, universal, and obligatory international-law norm and then determine whether judicial caution requires deference to Congress before allowing the claim to proceed.
  • The relevance of congressional statutory models to ATS corporate liability. The Torture Victim Protection Act's limitation of liability to individuals is a powerful indication that courts should not create a broader ATS remedy imposing liability on foreign corporations.

Cited authorities

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