Nestlé USA, Inc. v. Doe

593 U.S. 628
Supreme Court of the United States·Decided June 17, 2021·No. 19-416·Published·Cited by 24 cases

Opinion

(Slip Opinion) OCTOBER TERM, 2020 1

Syllabus

NOTE: Where it is feasible, a syllabus (headnote) will be released, as is being done in connection with this case, at the time the opinion is issued. The syllabus constitutes no part of the opinion of the Court but has been prepared by the Reporter of Decisions for the convenience of the reader. See United States v. Detroit Timber & Lumber Co., 200 U. S. 321, 337.

SUPREME COURT OF THE UNITED STATES

Syllabus

NESTLE USA, INC. v. DOE ET AL.

CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT

No. 19–416. Argued December 1, 2020—Decided June 17, 2021*

Respondents are six individuals from Mali who allege that they were trafficked into Ivory Coast as child slaves to produce cocoa. U. S.-based companies Nestlé USA, Inc., and Cargill, Inc., do not own or operate cocoa farms in Ivory Coast, but they do buy cocoa from farms located there and provide those farms with technical and financial resources. Respondents sued Nestlé, Cargill, and others under the Alien Tort Statute (ATS)—which provides federal courts jurisdiction to hear claims brought “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— contending that this arrangement aids and abets child slavery. Because respondents’ injuries occurred overseas and the only domestic conduct alleged by respondents was general corporate activity, the District Court dismissed the suit as an impermissible extraterritorial application of the ATS under Kiobel v. Royal Dutch Petroleum Co., 569 U. S. 108. The Ninth Circuit held, as relevant, that respondents had pleaded a domestic application of the ATS, as required by Kiobel, because the corporations’ major operational decisions originated in the United States. Held: The judgment is reversed, and the case is remanded. 929 F. 3d. 623, reversed and remanded.

JUSTICE THOMAS delivered the opinion of the Court with respect to Parts I and II, concluding that respondents here improperly seek extraterritorial application of the ATS. The Court’s two-step framework for analyzing extraterritoriality issues first presumes that a statute 2 NESTLE USA, INC. v. DOE

Syllabus

applies only domestically and asks “whether the statute gives a clear, affirmative indication” that rebuts the presumption. RJR Nabisco, Inc. v. European Community, 579 U. S. 325, 337. As the Court has already held, the ATS does not rebut the presumption of domestic application . Kiobel, 569 U. S., at 124. In fact, the ATS does not expressly “regulate conduct” at all, much less “evince a ‘clear indication of extraterritoriality .’ ” Id., at 115–118. Second, where the statute, as here, does not apply extraterritorially, plaintiffs must establish that “the conduct relevant to the statute’s focus occurred in the United States . . . even if other conduct occurred abroad.” RJR Nabisco, 579 U. S., at 337.

The parties dispute what conduct is relevant to the “focus” of the ATS, but even if this dispute were resolved in respondents’ favor, their complaint would impermissibly seek extraterritorial application of the ATS. Nearly all the conduct they allege aided and abetted forced labor —providing training, equipment, and cash to overseas farmers— occurred in Ivory Coast. Pleading general corporate activity, like “mere corporate presence,” Kiobel, 569 U. S., at 125, does not draw a sufficient connection between the cause of action respondents seek and domestic conduct. To plead facts sufficient to support a domestic application of the ATS, plaintiffs must allege more domestic conduct than general corporate activity common to most corporations. Pp. 3–5.

THOMAS, J., announced the judgment of the Court and delivered the opinion of the Court with respect to Parts I and II, in which ROBERTS, C. J., and BREYER, SOTOMAYOR, KAGAN, GORSUCH, KAVANAUGH, and BAR- RETT, JJ., joined, and an opinion with respect to Part III, in which GOR- SUCH and KAVANAUGH, JJ., joined. GORSUCH, J., filed a concurring opinion , in which ALITO, J., joined as to Part I, and in which KAVANAUGH, J., joined as to Part II. SOTOMAYOR, J., filed an opinion concurring in part and concurring in the judgment, in which BREYER and KAGAN, JJ., joined. ALITO, J., filed a dissenting opinion.

Cite as: 593 U. S. ____ (2021) 1

Opinion of the Court

NOTICE: This opinion is subject to formal revision before publication in the preliminary print of the United States Reports. Readers are requested to notify the Reporter of Decisions, Supreme Court of the United States, Washington , D. C. 20543, of any typographical or other formal errors, in order that corrections may be made before the preliminary print goes to press.

SUPREME COURT OF THE UNITED STATES

Nos. 19–416 and 19–453

NESTLE USA, INC., PETITIONER 19–416 v.

JOHN DOE I, ET AL.

CARGILL, INC., PETITIONER 19–453 v.

JOHN DOE I, ET AL.

ON WRITS OF CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT [June 17, 2021]

JUSTICE THOMAS announced the judgment of the Court and delivered the opinion of the Court with respect to Parts I and II, and an opinion with respect to Part III, in which JUSTICE GORSUCH and JUSTICE KAVANAUGH join.

The Alien Tort Statute (ATS) gives federal courts jurisdiction to hear certain civil actions filed by aliens. 28 U. S. C. §1350. Although this jurisdictional statute does not create a cause of action, our precedents have stated that courts may exercise common-law authority under this statute to create private rights of action in very limited circumstances . See, e.g., Sosa v. Alvarez-Machain, 542 U. S. 692, 724 (2004); Hernández v. Mesa, 589 U. S. ___, ___, ___ (2020) (slip op., at 6, 14). Respondents here seek a judicially created cause of action to recover damages from American corporations that allegedly aided and abetted slavery abroad. Although respondents’ injuries occurred entirely 2 NESTLE USA, INC. v. DOE

Opinion of the Court

overseas, the Ninth Circuit held that respondents could sue in federal court because the defendant corporations allegedly made “major operational decisions” in the United States. The Ninth Circuit erred by allowing this suit to proceed .

I

According to the operative complaint, Ivory Coast—a West-African country also known as Côte d’Ivoire—is responsible for the majority of the global cocoa supply. Respondents are six individuals from Mali who allege that they were trafficked into Ivory Coast as child slaves to produce cocoa.

Petitioners Nestlé USA and Cargill are U. S.-based companies that purchase, process, and sell cocoa. They did not own or operate farms in Ivory Coast. But they did buy cocoa from farms located there. They also provided those farms with technical and financial resources—such as training, fertilizer, tools, and cash—in exchange for the exclusive right to purchase cocoa. Respondents allege that they were enslaved on some of those farms.

Respondents sued Nestlé, Cargill, and other entities, contending that this arrangement aided and abetted child slavery . Respondents argue that petitioners “knew or should have known” that the farms were exploiting enslaved children yet continued to provide those farms with resources. App. 319. They further contend that petitioners had economic leverage over the farms but failed to exercise it to eliminate child slavery. And although the resource distribution and respondents’ injuries occurred outside the United States, respondents contend that they can sue in federal court because petitioners allegedly made all major operational decisions from within the United States.

The District Court dismissed this suit after we held that the ATS does not apply extraterritorially. Kiobel v. Royal Dutch Petroleum Co., 569 U. S. 108 (2013). It reasoned that

Cite as: 593 U. S. ____ (2021) 3

Opinion of the Court

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