Bano v. Union Carbide Corp.

273 F.3d 120, 2001 WL 1427210
CourtCourt of Appeals for the Second Circuit
DecidedNovember 15, 2001
DocketDocket No. 00-9250
StatusPublished
Cited by42 cases

This text of 273 F.3d 120 (Bano v. Union Carbide Corp.) 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
Bano v. Union Carbide Corp., 273 F.3d 120, 2001 WL 1427210 (2d Cir. 2001).

Opinion

SACK, Circuit Judge:

This litigation is the latest of many legal battles stemming from perhaps history’s worst industrial catastrophe: the 1984 toxic gas disaster at a chemical plant in Bhopal, India. Earlier actions included scores of individual and class-action complaints filed in federal courts throughout the United States and consolidated in the United States District Court for the Southern District of New York. Those claims were dismissed in deference to the Indian government’s efforts on behalf of disaster victims to pursue a global resolution in India of claims related to the disaster. The ensuing litigation in India eventually produced a settlement agreement, which gained the final approval of the Supreme Court of India in 1991.

The present action is in part an effort to obtain further redress for the Bhopal disaster in United States courts. The plaintiffs assert that they are victims of the disaster, their next-of-kin, and groups representing victims. The defendants are Union Carbide Corporation (“Union Carbide”) and its former Chief Executive Officer, Warren Anderson. At the time of the disaster, Union Carbide was the majority owner of Union Carbide India Limited (“UCIL”), which owned and operated the Bhopal plant. The plaintiffs allege that the defendants’ conduct leading up to the disaster violated various norms of international law, and seek relief under the Alien Tort Claims Act, 28 U.S.C. § 1350 (the “ATCA”).1

We hold that the fugitive disentitlement doctrine, which the plaintiffs argue bars the defendants from asserting defenses or dispositive motions based upon Indian law, is inapplicable to this case. And we hold that these claims are barred by the Indian settlement, which encompasses all civil claims related to the disaster.

The plaintiffs also raise several common-law claims seeking relief for environmental contamination at the Bhopal plant allegedly unrelated to the 1984 gas leak. The district court dismissed the plaintiffs’ entire complaint without directly addressing these claims. We vacate and remand the district court’s order insofar as it granted summary judgment to the defendants on the additional environmental claims in order to permit the court to address them in the first instance.

BACKGROUND

On the night of December 2-3, 1984, the UCIL Bhopal chemical plant leaked a large quantity of methyl isocyanate, a highly toxic gas, into the City of Bhopal, State of Madhya Pradesh, Union of India. Winds blew the gas into densely populated neighborhoods, resulting in thousands of deaths and more than two hundred thousand injuries. See In re Union Carbide Corp. Gas Plant Disaster at Bhopal, India, 634 F.Supp. 842, 844 (S.D.N.Y.1986) (“Bhopal I”).

Shortly after the disaster, victims and their relatives began to seek recovery from Union Carbide in United States courts. On February 6, 1985, the Judicial Panel on Multidistrict Litigation assigned 145 purported class actions that had been filed in federal courts throughout the country to the Southern District of New York. See id. A consolidated complaint was filed in that court on June 28,1985.

On March 29, 1985, India adopted the Bhopal Gas Leak Disaster (Processing of [123]*123Claims) Act (the “Bhopal Act”). That statute purported to give the Indian government the exclusive authority to represent victims of the Bhopal disaster in courts around the world. Individual victims and groups of victims, including several of the plaintiffs in this case, later challenged the validity of the Bhopal Act under the Indian Constitution. The Supreme Court of India upheld the Act. See Sahu v. Union of India, A.I.R.1990 S.C. 1480 (“Sahu”).

On April 8, 1985, meanwhile, the Indian government, acting pursuant to its authority under the Bhopal Act, filed a complaint in the United States District Court for the Southern District of New York on behalf of all victims of the disaster. In May 1986, the district court (John F. Keenan, Judge) dismissed the consolidated action, but made the dismissal contingent upon, among other things, Union Carbide’s submission to the jurisdiction of Indian courts. See Bhopal I, 634 F.Supp. at 867. We affirmed in In re Union Carbide Corp. Gas Plant Disaster at Bhopal, India, 809 F.2d 195 (2d Cir.), cert. denied, 484 U.S. 871, 108 S.Ct. 199, 98 L.Ed.2d 150 (1987).

In September 1986, the Indian government filed suit against Union Carbide in Bhopal District Court. Independently of that action, in November 1987, India’s Central Bureau of Investigation filed criminal charges against, among others, UCIL, Union Carbide, and Warren Anderson, alleging culpable homicide, grievous hurt, and causing death by use of a dangerous instrumentality.

Litigation in the civil suit proceeded for more than two years, during the course of which jurisdiction passed to the Supreme Court of India. Acting pursuant to Article 142(1) of the Indian Constitution, which enables the Supreme Court to fashion settlements in some circumstances,2 the Court issued two orders, one dated February 14, 1989, the other dated the following day (together, the “1989 settlement orders”), which, among other things, memorialized the terms of a settlement agreement among the parties. See Union Carbide Corp. v. Union of India, A.I.R. 1990 S.C. 273, 274-76 (“Union of India I”). The February 14, 1989 settlement order required Union Carbide to pay $470 million to the Indian government “in full settlement of all claims, rights and liabilities related to and arising out of the Bhopal Gas disaster,” and stated that “all civil proceedings” related to the disaster “shall stand concluded in terms of the settlement.” Id. at 275. The February 15, 1989 settlement order reduced Union Carbide’s share of the liability by $45 million to $425 million and required UCIL, instead, to pay that $45 million. See id.

The 1989 settlement orders also quashed all related criminal proceedings. Id. Among the contested issues on appeal is whether this aspect of the orders constituted a term of the preliminary settlement or was an independent ruling by the Supreme Court of India.

The Supreme Court of India later rejected a challenge to the validity of the 1989 settlement orders. See Union Carbide Corp. v. Union of India, A.I.R.1992 S.C. 248 (“Union of India II”). The Court affirmed its jurisdiction under the Indian Constitution to fashion the relief contained in those orders and concluded that the settlement was just and reasonable. The Court modified the orders in [124]*124one important respect, however. It overruled the portion of the order quashing additional criminal proceedings and ordered the criminal prosecution of Union Carbide, Anderson, and others to proceed. Id. at 312.

The criminal prosecution thereafter went forward in Bhopal District Court. Neither Anderson nor Union Carbide appeared for arraignment or any other proceedings in connection with that prosecution. In 1992, the Bhopal District Court declared them “absconders” and ordered the attachment of Union Carbide’s remaining assets in India.

On the civil front, meanwhile, in 1990 two purported classes of plaintiffs filed new complaints related to the Bhopal disaster in Texas state courts. The complaints, among other things, challenged the validity of the 1989 settlement orders.

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