Transnational

Over the past 15 years, there has been a sharp rise in lawsuits brought against American companies, as well as foreign companies with a substantial U.S. presence, that are premised on alleged personal or environmental injuries occurring abroad. These cases raise the question of whether U.S. courts should be the venue for cases concerning conduct occurring outside the territory of the United States. They have also been characterized by controversial and abusive tactics by plaintiffs and their lawyers.

Many of those transnational lawsuits have been filed in the U.S. by plaintiffs’ class action firms, public interest attorneys and non-governmental organizations.  Some have been filed in federal courts under the 200-year old Alien Tort Statute (ATS), while many more have been brought in state courts under common law theories of liability. 

These cases raise several concerns. One is the use of U.S. courts for adjudicating disputes that occurred outside of the country. It is a generally established principle that U.S. courts should not hear cases involving foreign conduct unless there is a significant nexus to the United States. By undermining this principle, these cases set a precedent that could be used to expose Americans to litigation in foreign courts over conduct occurring in the United States.

Equally troubling are the tactics used in these cases. According to ILR’s study Think Globally, Sue Locally, transnational cases are characterized by a number of features, including aggressive media tactics, organized protests and boycotts of corporate defendants, political pressure and, in some cases, outright fraud and abuse by plaintiffs’ lawyers. In the major transnational case against Chevron in Ecuador, four federal courts have found the proceedings tainted by fraud.

In April 2013, the U.S. Supreme Court ruled in Kiobel v. Royal Dutch Petroleum that claims of wrongful conduct on foreign soil cannot be brought in U.S. courts under the ATS.  This ruling has substantially limited the use of the ATS in transnational cases, but does not deter cases brought under state common law. A complete list of lawsuits against corporations under the Alien Tort Statute can be found here

 

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All Results for Transnational

  1. In the News Today - June 7, 2019

    June 07, 2019 | News

    NYC Bar Won't Make TPLF Comments Public... Read More

  2. ILR: NYC Bar Shouldn't "Immunize" Unethical TPLF Deals

    June 05, 2019 | News

    The U.S. Chamber Institute for Legal Reform (ILR) urged the New York City Bar Association not to "immunize" third party litigation funding as it explores whether or not the practice violates the organization's ethical guidelines on fee splitting.... Read More

  3. In the News Today - June 4, 2019

    June 04, 2019 | News

    ... Read More

  4. Did Litigation Funders Just Confirm Our Suspicions? Again?

    May 31, 2019 | Blogs

    It is not surprising that in April, two litigation funders essentially confirmed they look for cases with massive damages potential to find their next jackpot. What is more interesting is the fact that one of those funders, contrary to the industry's long-standing declaration against such practices, may have just admitted they do, in fact, want some control over the litigation they fund.... Read More

  5. Litigation Funding "Damaging" Australian Economy, Former Law Council President Says

    May 30, 2019 | News

    The former president of the Law Council of Australia, which represents the country's legal profession, said in an op-ed that third party litigation funding must be addressed because it is "damaging" the economy and "taking excessive commissions and charges from those claimants who genuinely deserve compensation."... Read More

  6. In the News Today - May 16, 2019

    May 16, 2019 | News

    "State AGs Protest ALI Consumer Contract Restatement;" Litigation Funders Walk Through "Tools" They Use to Keep Recipients in Line... Read More

  7. In the News Today - May 3, 2019

    May 03, 2019 | News

    Judge Says TPLF Invites Questions of "Control;" U.S. Chamber Institute for Legal Reform Adds Capitol Hill Lawyer To Executive Team... Read More

  8. In the News Today - April 3, 2019

    April 03, 2019 | News

    Lawyers' Court Fight Spills Over From Florida To Texas... Read More

  9. Now We Know Why Litigation Funders Make It "Harder and More Expensive to Settle Cases"

    April 03, 2019 | Blogs

    Third party litigation funders can keep their presence hidden without the judge, jury, or defendant knowing that they're bankrolling the case. But every once in a while, we get some sunlight. Last year, an executive with one of the world's largest litigation funders, IMF Bentham, admitted to The Wall Street Journal that they "make it harder and more expensive to settle cases." Now, we may know why. ... Read More

  10. Lone Star Lawmakers Take Lead in Tackling Trio of Troubling Lawsuit Abuses

    March 29, 2019 | Blogs

    At a Judiciary Committee hearing this week, the Texas House of Representatives debated a trio of bills that address key issues facing the civil justice system today: The growing problem of lawsuits by cities and counties, harmful trial lawyer advertising misleading seniors into stopping their medications, and big finance firms investing in lawsuits.... Read More