07 Jesner v. Arab Bank
07 Jesner v. Arab Bank
07 Jesner v. Arab Bank
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KENNEDY, J., announced the judgment of the Court and delivered the
opinion of the Court with respect to Parts I, II–B–1, and II–C, in which
ROBERTS, C. J., and THOMAS, ALITO, and GORSUCH, JJ., joined, and an
opinion with respect to Parts II–A, II–B–2, II–B–3, and III, in which
ROBERTS, C. J., and THOMAS, J., joined. THOMAS, J., filed a concurring
opinion. ALITO, J., and GORSUCH, J., filed opinions concurring in part
and concurring in the judgment. SOTOMAYOR, J., filed a dissenting
opinion, in which GINSBURG, BREYER, and KAGAN, JJ., joined.
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determination.
These and other considerations that must shape and
instruct the formulation of principles of international and
domestic law are matters that the political branches are in
the better position to define and articulate. For these
reasons, judicial deference requires that any imposition of
corporate liability on foreign corporations for violations of
international law must be determined in the first instance
by the political branches of the Government.
The judgment of the Court of Appeals is affirmed.
It is so ordered.
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“to find the rule that will best effectuate the federal policy.”
Textile Workers v. Lincoln Mills of Ala., 353 U. S. 448,
457 (1957).
The ATS was meant to help the United States avoid
diplomatic friction. The First Congress enacted the law to
provide a forum for adjudicating that “narrow set of viola-
tions of the law of nations” that, if left unaddressed,
“threaten[ed] serious consequences” for the United States.
Sosa, 542 U. S., at 715; see also Brief for Professors of
International Law et al. as Amici Curiae 7–12. Specifically,
the First Congress was concerned about offenses like
piracy, violation of safe conducts, and infringement of the
rights of ambassadors, each of which “if not adequately
redressed could rise to an issue of war.” Sosa, supra, at
715. That threat was existentially terrifying for the young
Nation. See Kiobel v. Royal Dutch Petroleum Co., 569
U. S. 108, 123–124 (2013). To minimize the danger, the
First Congress enacted the ATS, “ensur[ing] that the
United States could provide a forum for adjudicating such
incidents” and thus helping the Nation avoid further
diplomatic imbroglios. Id., at 124; see ante, at 25 (majority
opinion).
Putting that objective together with the rules governing
federal common law generally, the following principle
emerges: Federal courts should decline to create federal
common law causes of action under Sosa’s second step
whenever doing so would not materially advance the
ATS’s objective of avoiding diplomatic strife. And apply-
ing that principle here, it is clear that federal courts
should not create causes of action under the ATS against
foreign corporate defendants. All parties agree that cus-
tomary international law does not require corporate liabil-
ity as a general matter. See Brief for Petitioners 30; Brief
for Respondent 22; see also ante, at 17 (plurality opinion);
post, at 3–4 (SOTOMAYOR, J., dissenting). But if customary
international law does not require corporate liability, then
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I
First adopted in 1789, the current version of the ATS
provides that “[t]he 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. More than two
hundred years later, the meaning of this terse provision
has still “proven elusive.” Sosa v. Alvarez-Machain, 542
U. S. 692, 719 (2004). At the same time, this Court has
suggested that Congress enacted the statute to afford
federal courts jurisdiction to hear tort claims related to
three violations of international law that were already
embodied in English common law: violations of safe con-
ducts extended to aliens, interference with ambassadors,
and piracy. Id., at 715; 4 W. Blackstone, Commentaries on
the Laws of England 68 (1769) (Blackstone); see also
Bellia & Clark, The Alien Tort Statute and the Law of
Nations, 78 U. Chi. L. Rev. 445 (2011) (arguing that the
ATS meant to supply jurisdiction over a slightly larger set
of claims involving intentional torts by Americans against
aliens).
In this case, the plaintiffs seek much more. They want
the federal courts to recognize a new cause of action, one
that did not exist at the time of the statute’s adoption, one
that Congress has never authorized. While their request
might appear inconsistent with Sosa’s explanation of the
ATS’s modest origin, the plaintiffs say that a caveat later
in the opinion saves them. They point to a passage where
the Court went on to suggest that the ATS may also afford
federal judges “discretion [to] conside[r] [creating] new
cause[s] of action” if they “rest on a norm of international
character accepted by the civilized world and defined with
a specificity comparable to the features of the [three] 18th-
century” torts the Court already described. 542 U. S., at
725.
I harbor serious doubts about Sosa’s suggestion. In our
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judgment).1
But even accepting Sosa’s framework does not end the
matter. As the Court acknowledges, there is a strong
argument that “a proper application of Sosa would pre-
clude courts from ever recognizing any new causes of
action under the ATS.” Ante, at 19. I believe that argu-
ment is correct. For the reasons just described, separation
of powers considerations ordinarily require us to defer to
Congress in the creation of new forms of liability. This
Court hasn’t yet used Sosa’s assertion of discretionary
authority to recognize a new cause of action, and I cannot
imagine a sound reason, hundreds of years after the stat-
ute’s passage, to start now. For a court inclined to claim
the discretion to enter this field, it is a discretion best
exercised by staying out of it.
The context in which any Sosa discretion would be
exercised confirms the wisdom of restraint. Sosa acknowl-
edged that any decision to create a new cause of action
would “inevitably [involve] an element of judgment about
the practical consequences” that might follow. Id., at 732–
733. But because the point of such a claim would be to
vindicate “a norm of international character,” id., at 725,
those “practical consequences” would likely involve ques-
tions of foreign affairs and national security—matters that
implicate neither judicial expertise nor authority. It is for
Congress to “define and punish . . . Offences against the
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1 Thedissent claims that Congress’s decision to give federal courts
“jurisdiction over claims based on ‘the law of nations,’ ” necessarily
implies the authority to develop that law. Post, at 16. That does not
follow. Federal courts have jurisdiction over all kinds of cases—for
example, those arising under the law of torts or contracts. Yet follow-
ing our decision in Erie R. Co. v. Tompkins, 304 U. S. 64 (1938), federal
courts are generally no longer permitted to promulgate new federal
common law causes of action in those areas. Id., at 75. I can see no
reason to treat the law of nations differently. See Sosa v. Alvarez-
Machain, 542 U. S. 692, 744–746 (2004) (Scalia, J., concurring in part
and concurring in judgment).
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§1350, the original text of the ATS did not expressly call
for a U. S. defendant. But I think it likely would have
been understood to contain such a requirement when
adopted.
That is because the First Congress passed the Judiciary
Act in the shadow of the Constitution. The Act created the
federal courts and vested them with statutory authority to
entertain claims consistent with the newly ratified terms
of Article III. Meanwhile, under Article III, Congress
could not have extended to federal courts the power to
hear just any suit between two aliens (unless, for example,
one was a diplomat). Diversity of citizenship was re-
quired. So, because Article III’s diversity-of-citizenship
clause calls for a U. S. party, and because the ATS clause
requires an alien plaintiff, it follows that an American
defendant was needed for an ATS suit to proceed.
Precedent confirms this conclusion. In Mossman v.
Higginson, 4 Dall. 12, 14 (1800), this Court addressed the
meaning of a neighboring provision of the Judiciary Act.
Section 11 gave the circuit courts power to hear, among
other things, civil cases where “an alien is a party.” 1
Stat. 78. As with §9, you might think §11’s language could
be read to permit a suit between aliens. Yet this Court
held §11 must instead be construed to refer only to cases
“where, indeed, an alien is one party, but a citizen is the
other.” Mossman, 4 Dall., at 14 (internal quotation marks
omitted). That was necessary, Mossman explained, to give
the statute a “constructio[n] consistent” with the diversity-
jurisdiction clause of Article III. Ibid. And as a matter of
precedent, I cannot think of a good reason why we would
now read §9 differently than Mossman read §11. Like
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courts of the several States, of all suits against consuls or vice-consuls,
except for offences above the description aforesaid. And the trial of
issues in fact, in the district courts, in all causes except civil causes of
admiralty and maritime jurisdiction, shall be by jury.” 1 Stat. 76–77
(some emphasis added; footnotes omitted).
8 JESNER v. ARAB BANK, PLC
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cases are, after all, supposed to come out alike. See Sarei
v. Rio Tinto, PLC, 671 F. 3d 736, 828 (CA9 2011) (Ikuta,
J., dissenting) (“Mossman’s analysis [of §11] is equally
applicable to [§9]. . . . ATS does not give federal courts
jurisdiction to hear international law claims between two
aliens”), vacated and remanded, 569 U. S. 945 (2013).
Nor does it appear the ATS meant to rely on any other
head of Article III jurisdiction. You might wonder, for
example, if the First Congress considered a “violation of
the law of nations” to be a violation of, and thus “arise
under,” federal law. But that does not seem likely. At the
founding, the law of nations was considered a distinct
“system of rules, deducible by natural reason, and estab-
lished by universal consent among the civilized inhabit-
ants of the world,” 4 Blackstone 66. While this Court has
called international law “part of our law,” The Paquete
Habana, 175 U. S. 677, 700 (1900), and a component of the
“law of the land,” The Nereide, 9 Cranch 388, 423 (1815),
that simply meant international law was no different than
the law of torts or contracts—it was “part of the so-called
general common law,” but not part of federal law. Sosa,
542 U. S., at 739–740 (opinion of Scalia, J.). See Bradley &
Goldsmith, Customary International Law as Federal
Common Law: A Critique of the Modern Position, 110
Harv. L. Rev. 815, 824, 849–850 (1997); see also Young,
Sorting Out the Debate Over Customary International
Law, 42 Va. J. Int’l L. 365, 374–375 (2002). The text of the
Constitution appears to recognize just this distinction.
Article I speaks of “Offences against the Law of Nations,”
while both Article III and Article VI’s Supremacy Clause,
which defines the scope of pre-emptive federal law, omit
that phrase while referring to the “Laws of the United
States.” Congress may act to bring provisions of interna-
tional law into federal law, but they cannot find their way
there on their own. “The law of nations is not embodied in
any provision of the Constitution, nor in any treaty, act of
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law. The prohibitions in the Bill of Rights, for instance, apply only to
state actors, whereas the Thirteenth Amendment’s prohibition on
slavery applies to all actors, state and private. See United States v.
Kozminski, 487 U. S. 931, 942 (1988).
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2 At present, the norm-specific query contemplated by footnote 20 is
2
The plurality briefly acknowledges this critique of its
reading of footnote 20, but nonetheless assumes the cor
rectness of its approach because of its view that there
exists a “distinction in international law between corpora
tions and natural persons.” Ante, at 17. The plurality
attempts to substantiate this proposition by pointing to
the charters of certain international criminal tribunals
and noting that none was given jurisdiction over corporate
defendants. That argument, however, confuses the sub
stance of international law with how it has been enforced
in particular contexts.
Again, the question of who must undertake the prohib
ited conduct for there to be a violation of an international-
law norm is one of international law, but how a particular
actor is held liable for a given law-of-nations violation
generally is a question of enforcement left up to individual
states. Sometimes, states act collectively and establish
international tribunals to punish certain international-law
violations. Each such tribunal is individually negotiated,
and the limitations placed on its jurisdiction are typi-
cally driven by strategic considerations and resource
constraints.
For example, the Allies elected not to prosecute corpora
tions at Nuremberg because of pragmatic factors. Those
factors included scarce judicial resources, a preference of
the occupation governments to swiftly dismantle the most
culpable German companies without destroying Germa
ny’s postwar economy, and a desire to focus on establish
ing the principle of nonstate criminal responsibility for
human-rights violations. See Brief for Nuremberg Schol
ars as Amici Curiae 4, 11–13.
More recently, the delegations that negotiated the Rome
Statute of the International Criminal Court in the 1990’s
elected not to extend that tribunal’s jurisdiction to corpo
rations in part because states had varying domestic prac
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nized Crime, Art. 10(1), Nov. 15, 2000, T. I. A. S. No. 13127, S. Treaty
Doc. No. 108–16; Convention on Combating Bribery of Foreign Public
Officials in International Business Transactions, Art. 2, Dec. 17, 1997,
2802 U. N. T. S. 230.
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states parties recognize tort claims for genocide, but federal courts have
long permitted such actions under the ATS as a matter of federal
common law. See, e.g., Kadic, 70 F. 3d, at 236. The same is true of the
Torture Convention. See, e.g., Filartiga v. Pena-Irala, 630 F. 2d 876,
885 (CA2 1980).
12 JESNER v. ARAB BANK, PLC
241 (1989), two aspects of the text of the ATS make clear
that the statute allows corporate liability. First, the text
confers jurisdiction on federal district courts to hear “civil
action[s]” for “tort[s].” 28 U. S. C. §1350. Where Congress
uses a term of art like tort, “it presumably knows and
adopts the cluster of ideas that were attached to [the]
borrowed word in the body of learning from which it was
taken and the meaning its use will convey to the judicial
mind unless otherwise instructed.” Morissette v. United
States, 342 U. S. 246, 263 (1952).
Corporations have long been held liable in tort under
the federal common law. See Philadelphia, W., & B. R.
Co. v. Quigley, 21 How. 202, 210 (1859) (“At a very early
period, it was decided in Great Britain, as well as in the
United States, that actions might be maintained against
corporations for torts; and instances may be found, in the
judicial annals of both countries, of suits for torts arising
from the acts of their agents, of nearly every variety”);
Chestnut Hill & Spring House Turnpike Co. v. Rutter, 4
Serg. & Rawle 6, 17 (Pa. 1818) (“[F]rom the earliest times
to the present, corporations have been held liable for
torts”). This Court “has assumed that, when Congress
creates a tort action, it legislates against a legal back
ground of ordinary tort-related . . . rules and consequently
intends its legislation to incorporate those rules.” Meyer v.
Holley, 537 U. S. 280, 285 (2003). The presumption, then,
is that, in providing for “tort” liability, the ATS provides
for corporate liability.
Second, whereas the ATS expressly limits the class of
permissible plaintiffs to “alien[s],” §1350, it “does not
distinguish among classes of defendants,” Argentine Re-
public v. Amerada Hess Shipping Corp., 488 U. S. 428, 438
(1989). That silence as to defendants cannot be presumed
to be inadvertent. That is because in the same section of
the Judiciary Act of 1789 as what is now the ATS, Con
gress provided the federal district courts with jurisdiction
14 JESNER v. ARAB BANK, PLC
II
At its second step, Sosa cautions that courts should
consider whether permitting a case to proceed is an ap
propriate exercise of judicial discretion in light of potential
foreign-policy implications. See 542 U. S., at 727–728,
732–733, 738. The plurality only assumes without decid
ing that international law does not impose liability on
corporations, so it necessarily proceeds to Sosa’s second
step. Here, too, its analysis is flawed.
A
Nothing about the corporate form in itself justifies
categorically foreclosing corporate liability in all ATS
actions. Each source of diplomatic friction that respond
ent Arab Bank and the plurality identify can be addressed
with a tool more tailored to the source of the problem than
a blanket ban on corporate liability.
Arab Bank contends that foreign citizens should not be
able “to sue a Jordanian corporation in New York for
events taking place in the Middle East.” Brief for Re
spondent 42. The heart of that qualm was already ad
dressed in Kiobel, which held that the presumption
against extraterritoriality applies to the ATS. 569 U. S.,
at 124. Only where the claims “touch and concern the
territory of the United States . . . with sufficient force” can
the presumption be displaced. Id., at 124–125. “[M]ere
corporate presence” does not suffice. Id., at 125. Thus,
contrary to the majority’s contention, “the relatively minor
connection between the terrorist attacks at issue in this
case and the alleged conduct in the United States” does
not “well illustrat[e] the perils of extending the scope of
ATS liability to foreign multinational corporations,” ante,
at 25, but merely illustrates the risks of extending the
scope of ATS liability extraterritorially absent sufficient
connection to the United States.
Arab Bank also bemoans the unfairness of being sued
20 JESNER v. ARAB BANK, PLC
ATS, but that argument is based on its view that there is no universally
recognized international-law norm of corporate liability, see Brief for
Hashemite Kingdom of Jordan as Amicus Curiae 12–15, not a conten
tion that corporate status alone presents foreign-policy concerns justify
ing immunity for all corporations in all ATS suits irrespective of
circumstance.
22 JESNER v. ARAB BANK, PLC
relations concerns at play in this case. Arab Bank is still being sued
under the Antiterrorism Act of 1990 for the exact same conduct as
alleged here. It is also hard to imagine that Jordan would have been
perfectly content to see the CEO of Arab Bank and high-level officials
at the New York branch sued under the ATS.
24 JESNER v. ARAB BANK, PLC
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been in conflict with the FSIA.
11 Petitioners may be right that Congress limited liability under the
TVPA to natural persons to harmonize the statute with the FSIA. That
Congress thought it necessary to achieve that goal by foreclosing
liability against all organizational defendants, not just those operating
under the authority of a foreign government, might indicate that
Congress thought such line drawing would be difficult, or that an
expansive approach was the cleanest way to avoid the statute becoming
a backdoor to suits against foreign governments.
28 JESNER v. ARAB BANK, PLC
liability at oral argument. See Tr. of Oral Arg. 60 (“[T]he idea of the
ATS is . . . not just that you violated a statute, but that you have
violated some specific universal obligatory norm so you are essentially
an enemy of mankind. So, as much as my clients would not like to be
an ATA defendant, they would really, really, really not like to be . . .
labeled an enemy of mankind”).
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friction.13
Second, the plurality expresses concern that if foreign
corporations are subject to liability under the ATS, other
nations could hale American corporations into court and
subject them “to an immediate, constant risk of claims
seeking to impose massive liability for the alleged conduct
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13 JUSTICE ALITO, adopting a more absolutist position than the plurality,
asserts without qualification that “federal courts should not create
causes of action under the ATS against foreign corporate defendants”
because doing so “would precipitate . . . diplomatic strife.” Ante, at 1, 4
(opinion concurring in part and concurring in judgment). The conclu
sion that ATS suits against foreign corporate defendants for law-of
nations and treaty violations always will cause diplomatic friction, and
that such suits will never be necessary “to help the United States avoid
diplomatic friction,” ante, at 4, however, is at odds with the considered
judgment of the Executive Branch and Congress regarding the im
portance of holding foreign corporations to account for certain egregious
conduct. As noted, see Part II–B–1, supra, the Executive Branch has
twice urged the Court not to foreclose the ability of foreign nationals to
sue foreign corporate defendants under the ATS. The United States
also has ratified several international agreements that require it to
impose liability on corporations, both foreign and domestic, for certain
actions, including the financing of terrorism. See supra, at 10–11.
Congress, too, has expressly authorized civil suits against corporations
for acts related to terrorism. See 18 U. S. C. §2333. The Executive
Branch and Congress surely would not have taken these positions,
entered into these obligations, or made available these causes of action
if the result were intolerable diplomatic strife.
JUSTICE ALITO also faults the lack of “real-world examples” of in
stances in which diplomatic friction has resulted from a court’s refusal
to permit an individual to bring an ATS suit against a foreign corpora
tion solely because of the defendant’s status as a foreign juridical
entity. Ante, at 6. Such refusals, though, have been rare, as no other
Court of Appeals besides the Second Circuit that has considered the
question has imposed a bar on corporate liability. Compare Doe v.
Drummond Co., 782 F. 3d 576, 584 (CA11 2015); Doe I v. Nestle USA,
Inc., 766 F. 3d 1013, 1022 (CA9 2014); Doe v. Exxon Mobil Corp., 654
F. 3d 11, 39–57 (CADC 2011), vacated on other grounds, 527 Fed. Appx.
7 (CADC 2013); Flomo v. Firestone Nat. Rubber Co., 643 F. 3d 1013,
1017–1021 (CA7 2011), with Kiobel v. Royal Dutch Petroleum, 621 F. 3d
111, 120 (CA2 2010).
32 JESNER v. ARAB BANK, PLC
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14 See, e.g., Nahimana v. Prosecutor, Case No. ICTR 99–52–A, Ap
peals Judgment ¶176 (Nov. 28, 2007) (upholding finding that the RTLM
Collines broadcasts “contributed substantially to the killing of Tutsi”);
G. Prunier, The Rwanda Crisis: History of a Genocide 224 (2d ed. 1999)
(detailing incitements to murder broadcast on the RTLM, including:
“ ‘The graves are not yet full. Who is going to do the good work and
help us fill them completely’ ”); Yanagizawa-Drott, Propaganda and
Conflict: Evidence From the Rwandan Genocide, 129 Q. J. Econ. 1947,
1950 (2014) (analyzing village-level data from Rwanda to estimate that
the RTLM’s transmissions caused 10 percent of the total participation
in the genocide).