Corrie v. Caterpillar, Inc.

CourtCourt of Appeals for the Ninth Circuit
DecidedSeptember 17, 2007
Docket05-36210
StatusPublished

This text of Corrie v. Caterpillar, Inc. (Corrie v. Caterpillar, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Corrie v. Caterpillar, Inc., (9th Cir. 2007).

Opinion

FOR PUBLICATION UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT

CYNTHIA CORRIE, on their own  behalf and as Personal Representatives of Rachel Corrie and her next of kin, including her siblings; CRAIG CORRIE, on their own behalf and as Personal Representatives of Rachel Corrie and her next of kin, including her No. 05-36210 siblings; MAHMOUD OMAR AL SHO’BI; FATHIYA MUHAMMAD  D.C. No. CV-05-05192-FDB SULAYMAN FAYED; FAYEZ ALI MOHAMMED ABU HUSSEIN; MAJEDA OPINION RADWAN ABU HUSSEIN; EIDA IBRAHIM SULEIMAN KHALAFALLAH, Plaintiffs-Appellants, v. CATERPILLAR, INC., Defendant-Appellee.  Appeal from the United States District Court for the Western District of Washington Franklin D. Burgess, District Judge, Presiding

Argued and Submitted July 9, 2007—Seattle, Washington

Filed September 17, 2007

Before: Arthur L. Alarcón, Michael Daly Hawkins, and Kim McLane Wardlaw, Circuit Judges.

Opinion by Judge Wardlaw

12485 12488 CORRIE v. CATERPILLAR, INC.

COUNSEL

Gwynne Skinner and Ronald C. Slye, Seattle University, Ron- ald A. Peterson Law Clinic, Seattle, Washington; Maria C. LaHood and Jennifer Green, Center for Constitutional Rights, New York, New York; and Erwin Chemerinsky (argued), for the plaintiffs-appellants.

Robert G. Abrams (argued), Howrey LLP, Washington, D.C.; Joanne E. Caruso, Richard J. Burdge, Jr., and David G. Meyer, Howrey LLP, Los Angeles, California; James L. Magee, Graham & Dunn PLC, Seattle, Washington, for the defendant-appellee.

Ronald J. Bettauer, Deputy Legal Adviser, Department of State, Jeffrey Buchwoltz, Acting Assistant Attorney General, John McKay, U.S. Attorney, Douglas N. Letter, Robert M. Loeb (argued), Attorneys, Appellate Staff, Department of Jus- tice, Washington, D.C., for amicus curiae the United States.

Ralph G. Steinhardt, George Washington University Law School, Washington, D.C., for amicus curiae International Law Scholars.

Marco Simons and Richard L. Herz, Earthrights International, Washington, D.C., for amicus curiae Career Foreign Service Diplomats. CORRIE v. CATERPILLAR, INC. 12489 Allan Ides, Loyola Law School, Los Angeles, California, for amicus curiae Professors of Constitutional and International Law.

Terry Collingsworth for amicus curiae the International Labor Rights Fund.

Tyler R. Giannini, Human Rights Program of Harvard Law School, Cambridge, Massachusetts, for amicus curiae Law Professors.

Robin S. Conrad and Amar D. Sarwal, National Chamber Lit- igation Center, Inc., Washington, D.C.; Maria Ghazal, Busi- ness Roundtable, Washington, D.C.; Paul R. Friedman, John Townsend Rich, and William F. Sheehan, Goodwin Procter LLP, Washington, D.C., for amicus curiae the Chamber of Commerce of the United States of America and Business Roundtable.

OPINION

WARDLAW, Circuit Judge:

Plaintiffs Cynthia and Craig Corrie, Mahmoud Al Sho’bi, Fathiya Muhammad Sulayman Fayed, Fayez Ali Mohammed Abu Hussein, Majeda Radwan Abu Hussein, and Eida Ibra- him Suleiman Khalafallah filed this action after their family members were killed or injured when the Israeli Defense Forces (“IDF”) demolished homes in the Palestinian Territo- ries using bulldozers manufactured by Caterpillar, Inc., a United States corporation. The IDF ordered the bulldozers directly from Caterpillar, but the United States government paid for them. The district court dismissed the action under Federal Rule of Civil Procedure 12(b)(6), finding it lacked jurisdiction because, inter alia, the political question doctrine precludes decision by an Article III court. 12490 CORRIE v. CATERPILLAR, INC. Because we agree that plaintiffs’ claims present nonjusti- ciable political questions that deprive the district court of sub- ject matter jurisdiction when construed under Federal Rule of Civil Procedure 12(b)(1), we do not reach the remaining ques- tions presented under state, federal, and international law. Plaintiffs’ action cannot proceed because its resolution would require the federal judiciary to ask and answer questions that are committed by the Constitution to the political branches of our government.

We have jurisdiction under 28 U.S.C. § 1291, and we affirm.

I. Facts and Background

A. The Allegations in the Complaint

Because this action was dismissed under Federal Rule of Civil Procedure 12(b)(6), we accept all facts alleged in the complaint as true and construe them in the light most favor- able to the plaintiffs. Maduka v. Sunrise Hosp., 375 F.3d 909, 911 (9th Cir. 2004).

Following the Six Day War in 1967, Israel occupied and took control of the West Bank and Gaza Strip. Caterpillar is the world’s leading manufacturer of heavy construction and mining equipment. Among its customers is the IDF, which since 1967 has utilized Caterpillar bulldozers to demolish homes in the Palestinian Territories. According to plaintiffs’ complaint, Caterpillar sold the bulldozers to the IDF despite its actual and constructive notice that the IDF would use them to further its home destruction policy in the Palestinian Terri- tories; a policy plaintiffs contend violates international law. Seventeen members of plaintiffs’ families — sixteen Palestin- ians and one American — were killed or injured in the course of the demolitions. CORRIE v. CATERPILLAR, INC. 12491 B. Facts Beyond the Complaint1

The complaint alleges that Caterpillar sold bulldozers to the IDF, but it does not explain how those bulldozers were financed. There is undisputed evidence in the record, how- ever, that the United States government paid for every bull- dozer that Caterpillar transferred to the IDF. Caterpillar submitted an affidavit by Frank Weinberg (“Weinberg Decla- ration”), General Manager of Caterpillar’s Defense & Federal Products division, in which Weinberg states that the United States government has approved and financed all contracts between Israel and Caterpillar dating back to at least 1990, and that Caterpillar “does not sell products to the government of Israel in sales that are not approved by the U.S. govern- ment.”

Appended to the Weinberg Declaration is a copy of a letter from the Defense Security Cooperation Agency (“DSCA”), an arm of the United States Department of Defense, sent in Sep- tember 2001 to the Israeli government and copied to Caterpil- lar (“DSCA letter”). The letter grants “[f]unding approval” for the Israeli government’s purchase of fifty Caterpillar D9 bull- dozers under the Foreign Military Financing program (“FMF”). Under the FMF, foreign governments enter into contracts directly with American defense contractors and then apply to the DSCA for approval of funding on a case-by-case basis.2 The DSCA letter also states that the DSCA “find[s] the proposed procurement to be consistent with the purposes of 1 As we discuss infra, it is proper to consider facts in the record found outside the complaint because Caterpillar’s motion to dismiss argues the presence of a political question, which would deprive us of subject matter jurisdiction. 2 See DSCA, “Guidelines for Foreign Military Financing of Direct Com- mercial Contracts — January 2005,” at http://www.dsca.osd.mil/ DSCA_memoranda/fmf_dcc_2005/Guidlines 2005%203.pdf. We take judicial notice of the DSCA’s guidelines for implementing the FMF. See Fed. R. Evid.

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