DC And Seventh Circuits Split From Second Circuit: Allow For Corporate Liability Under Alien Tort Statute

Originally published in Pratt's Journal of Bankruptcy Law

This article describes two recent decisions from appellate courts that allow for corporate liability under the Alien Tort Statute. These decisions conflict with a Second Circuit decision, setting the stage for possible Supreme Court review.

In Kiobel v. Royal Dutch Petroleum Co., the Second Circuit held last year that the jurisdiction granted by the Alien Tort Statute ("ATS")¹ does not extend to civil actions against corporations.² Two recent decisions from appellate courts outside the Second Circuit have reached the opposite conclusion, thus possibly setting up this issue for determination by the Supreme Court.

On July 8, 2011, a panel of the District of Columbia Circuit ruled 2-1 in Doe VIII v. Exxon Mobil Corp.³ that the jurisdiction granted by the ATS extends to corporations and other non-natural person entities. Three days later, on July 11, 2011, the Seventh Circuit similarly held, unanimously, in F