Balintulo v. Daimler AG

727 F.3d 174, 2013 WL 4437057, 2013 U.S. App. LEXIS 17474
CourtCourt of Appeals for the Second Circuit
DecidedAugust 21, 2013
DocketDocket 09-2778-cv(L), 09-2779-cv, 09-2780-cv, 09-2781-cv, 09-2783-cv, 09-2785-cv, 09-2787-cv, 09-2792-cv, 09-2801-cv, 09-3037-cv
StatusPublished
Cited by88 cases

This text of 727 F.3d 174 (Balintulo v. Daimler AG) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Balintulo v. Daimler AG, 727 F.3d 174, 2013 WL 4437057, 2013 U.S. App. LEXIS 17474 (2d Cir. 2013).

Opinion

JOSÉ A. CABRANES, Circuit Judge:

The question presented is whether to issue a writ of mandamus to resolve in favor of the defendants this long-lived litigation under the Alien Tort Statute (“ATS”) — a statute, passed in 1789, that was rediscovered and revitalized by the courts in recent decades to permit aliens to sue for alleged serious violations of human rights occurring abroad. The statute was first deployed in 1980 against individual defendants alleged to have perpetrated crimes against humanity, and beginning in 1997, some courts have extended its reach to suits against corporate defendants as well. See Kiobel v. Royal Dutch Petroleum Co., 621 F.3d 111, 116 (2d Cir.2010), aff'd on other grounds, — U.S.-, 133 S.Ct. 1659, 185 L.Ed.2d 671 (2013). We consider this question in light of the Supreme Court’s recent decision that federal courts may not, under the ATS, recognize common-law causes of action for conduct occurring in another country.

In these putative class-action suits brought on behalf of those harmed by the decades-long South African legal regime known as “apartheid,” the plaintiffs assert that the South African subsidiary companies of the named corporate defendants— Daimler, Ford, and IBM (the “defen *180 dants”) — aided and abetted violations of customary international law committed by the South African government. 1 In short, the plaintiffs claim that these subsidiary companies sold cars and computers to the South African government, thus facilitating the apartheid regime’s innumerable race-based depredations and injustices, including rape, torture, and extrajudicial killings.

The plaintiffs brought these suits over ten years ago in federal court under the ATS, which confers federal jurisdiction over “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. Although the plaintiffs did not claim that any of the South African government’s alleged violations of the law of nations 2 occurred in the United States, *181 at the time they filed their complaint they assumed (as did most American courts at that time 3 ) that no such geographical connection was necessary. Based, in part, on that assumption, the United States District Court for the Southern District of New York (Shira A. Scheindlin, Judge 4 denied a motion to dismiss by the defendants, and allowed the suits to proceed. See In re South African Apartheid Litig., 617 F.Supp.2d 228, 246, 296 (S.D.N.Y.2009).

Although parties usually cannot appeal while district court proceedings are ongoing, the defendants sought immediate review of the District Court’s denial of their motion to dismiss in this Court, first through a motion to certify an interlocutory appeal, which the District Court denied, ánd thereupon through either a writ of mandamus or under the “collateral order” doctrine 5 — both of which permit immediate appellate review of certain types of particularly important decisions by a district court. In pursuing appellate review, the defendants claimed (1) that the case should be dismissed because it threatened significant United States foreign-policy interests, as explained in a statement of interest filed by the U.S. government; (2) that the jurisdiction conferred by the ATS does not permit suits against corporations or apply to acts committed outside of the United States; and (3) that the District Court erroneously imposed accessorial liability. We then granted the defendants’ motion for a stay of all proceedings, putting the District Court proceedings on pause while we considered this case.

Now on appeal for over four years, this case has been overtaken by recent events. Most significantly, the Supreme Court held, as a matter of United States law, that federal courts may not, under the ATS, recognize common-law causes of action for conduct occurring in the territory of another sovereign. Kiobel v. Royal Dutch Petroleum Co., — U.S.-, 133 S.Ct. 1659, 1668-69, 185 L.Ed.2d 671 (2013). 6 Addi *182 tionally, the South African government— which had previously opposed the suits because they “interfere[d] with the policy embodied by its Truth and Reconciliation Commission,” Sosa v. Alvarez-Machain, 542 U.S. 692, 733 n. 21, 124 S.Ct. 2739, 159 L.Ed.2d 718 (2004) — reversed its position in September 2009 after a change in governmental leadership. After this series of twists and turns, the parties submitted supplemental briefing, and we have now reached a decision.

The opinion of the Supreme Court in Kiobel plainly bars common-law suits, like this one, alleging violations of customary international law based solely on conduct occurring abroad. Because of that unambiguous holding, the defendants will be able to obtain their desired relief (dismissal of all claims) in the District Court through a motion for judgment on the pleadings, without resort to a writ of mandamus. The defendants’ request for mandamus relief is therefore denied. For the same reason, we need not consider the defendants’ argument under the collateral order doctrine. Instead, we vacate our stay on the District Court proceedings so that the defendants may move for judgment on the pleadings. We reserve the question whether we have jurisdiction under the collateral order doctrine and hold the putative appeal under that doctrine in abeyance pending further notice from the parties.

I. Background

A. The Pleadings

These consolidated cases come to us as a continuation of litigation on which the District Court, this Court, and even the Supreme Court, have already spoken at length. See Part I.B., post. In the latest iteration of pleadings, which have been amended twice, the plaintiffs assert that the South African subsidiaries of the various corporate defendants aided and abetted in violations of customary international law during the repressive “apartheid” legal regime in South Africa. The District Court summarized these allegations as follows:

Plaintiffs in the first action, Ntsebeza v. Daimler AG. (“Ntsebeza plaintiffs”), allege that they suffered discriminatory employment practices, employment retaliation for political beliefs, geographic segregation, arbitrary arrest and detention, torture, forced exile, arbitrary denationalization, and the extrajudicial killing of family members. The Ntsebeza plaintiffs bring a class action on behalf of “themselves and all black South African citizens (and their heirs and beneficiaries) who during the period from 1973 to 1994 suffered injuries” as a result of defendants’ direct and secondary violations of the law of nations.
Plaintiffs in the second action, Khulumani v. Barclay National Bank Ltd.

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Bluebook (online)
727 F.3d 174, 2013 WL 4437057, 2013 U.S. App. LEXIS 17474, Counsel Stack Legal Research, https://law.counselstack.com/opinion/balintulo-v-daimler-ag-ca2-2013.