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



As Kiobel Turns Two: How the Supreme Court is Leaving the Details to Lower Courts

August 11, 2015 | This paper explores the effect of the U.S. Supreme Court's Kiobel decision on Alien Tort Statute (ATS) litigation in lower courts, and how lower courts have struggled to determine whether Kiobel permits U.S. corporations to be sued under the ATS for alleged torts in foreign countries.

Federal Cases from Foreign Places: How the Supreme Court Has Limited Foreign Disputes From Flooding U.S. Courts

October 21, 2014 | This collection of essays examines the shifting legal landscape of federal claims by foreign plaintiffs in the federal courts and focuses on the most common statutes invoked by foreign plaintiffs, as well as the threshold issues of personal jurisdiction and pleading standards that govern such suits.

All Results for Transnational

In the News Today - November 16, 2017

November 16, 2017 | News and Blog

Federal Rules Panel to Look at Third-Party Litigation Funding; California may limit liability of self-driving cars' makers Read More »

Third Party Litigation Funding's Week Under the Microscope

Author: Page Faulk, Senior Vice President, Legal Reform Initiatives, U.S. Chamber Institute for Legal Reform | November 10, 2017 | News and Blog

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In the News Today - November 9, 2017

November 09, 2017 | News and Blog

Senate Urged To Pass Legal Reform Bills; Federal Judicial Panel to Consider Litigation Financing. Read More »

In the News Today - November 7, 2017

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The Time for Litigation Funding Transparency is Now; Wrestler Admitted Atty Solicitation In Podcast, WWE Says Read More »

The Time For Litigation Funding Transparency is Now

Author: Harold Kim, Executive Vice President, U.S. Chamber Institute for Legal Reform | November 07, 2017 | News and Blog

In court, third party litigation funding arrangements remain hidden. Outside the courtroom, however, the practice is getting more attention. Read More »

In the News Today - October 31

October 31, 2017 | News and Blog

Investors in Litigation Financing Target Commercial Auto; So What If You Can't Join a Class Action? Read More »

In the News Today - October 30, 2017

October 30, 2017 | News and Blog

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Unstable Foundation: Our Broken Class Action System and How to Fix It

October 24, 2017 | Research

Unstable Foundation examines the pervasive flaws afflicting the United States' class action system. Class actions rarely provide meaningful compensation for class members, and are poorly suited to deterring wrongful conduct. Read More »

In the News Today - October 19, 2017

October 19, 2017 | News and Blog

Trump Nominates Joseph Simons Of Paul Weiss As FTC Chair; UK-Based Temple Funding Urges Regulatory Oversight of Third Party Funding Industry Read More »

In the News Today - October 12, 2017

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Terror Liability Troubles Kennedy, Conservatives At High Court Read More »

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