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subject matter jurisdiction

Kiobel v. Royal Dutch Petroleum (10-1491)

in
Oral argument: 
October 1, 2012
Court below: 
United States Court of Appeals for the Second Circuit

Petitioner Esther Kiobel, representing a group of individuals from the Ogoni region in Nigeria, filed a class action lawsuit against Respondents, the Royal Dutch Petroleum Co., Shell Transport and Trading Company PLC, and Shell Petroleum Development Company of Nigeria, LTD (“Royal Dutch”) under the Alien Tort Statute (“ATS”). The ATS grants jurisdiction to some federal courts for certain violations of international law. Petitioners allege that Royal Dutch aided the Nigerian government in committing various acts of violence against protestors of the oil exploration projects in the Ogoni region.  Petitioners claim that they have standing to sue under the ATS because the history, text, and purpose of the statute support the application of the ATS to actions in foreign countries. Petitioner also contends that previous court decisions interpreted the ATS to extend beyond U.S. territory. In response, Royal Dutch argues that the ATS is not an exception to the presumption that U.S. law does not apply extraterritorially, and should not be applicable to actions outside of the U.S. The Court's decision in this case will clarify the reach of the U.S. federal courts' jurisdiction over certain extraterritorial tort claims. 

Questions Presented: 

Whether the issue of corporate civil tort liability under the Alien Tort Statute ("ATS"), 28 U.S.C. § 1350, is a merits question, as it has been treated by all courts prior to the decision below, or an issue of subject matter jurisdiction, as the court of appeals held for the first time.

Issue(s)

Whether an American federal court can hear a claim under the Alien Tort statute, when that claim arose out of conduct in a foreign country.

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Written by: 
Claire Holton-Basaldua
Dean Caruvana
Edited by: 
Jenny Liu
Additional Resources: 

Morrison v. National Australia Bank (08-1191)

in

Appealed from the United States Court of Appeals for the Second Circuit (Jan. 11, 2010)

Oral argument: Mar. 29, 2010

SUBJECT MATTER JURISDICTION, SECURITIES, COMITY, FOREIGN TRANSACTIONS

Respondent National Australia Bank (“NAB”) is an Australian corporation with significant U.S. operations. In 2001, NAB acknowledged flaws in the method that its Florida subsidiary, HomeSide Lending, had used in calculating the value of its mortgages and recording this value on its balance sheet. This recognition led to a drop both in NAB’s stock and ADR values. Petitioners, who represent a class of Australian and American shareholders, brought suit against NAB for alleged violations of Sections 10(b) and 20(a) of the Securities and Exchange Act of 1934. The Second Circuit dismissed the case for lack of subject matter jurisdiction. On appeal, Petitioners argue that the Securities and Exchange Act applies to foreign commerce, while NAB argues that there is a presumption against extraterritorial application of Congressional acts. The Supreme Court’s decision in this case will strike a balance between providing a U.S. forum for litigation between international parties and furnishing a recourse for international shareholders who fall victim to the fraudulent activity of international corporations with significant American operations.

Levin v. Commerce Energy, Inc. (09-223)

in

Appealed from the United States Court of Appeals for the Sixth Circuit (Feb. 4, 2009)

Oral argument: March 22, 1010

TAX INJUNCTION ACT, COMITY, SUBJECT MATTER JURISDICTION, FEDERALISM

Respondent, Commerce Energy, Inc., sued the Ohio Tax Commissioner, Petitioner, Richard Levin, alleging Ohio's tax scheme violates the Commerce Clause and the Equal Protection Clause of the U.S. Constitution. Commerce contends that four Ohio companies benefit from certain tax exemptions that Commerce is not eligible for as an out-of-state company. Levin argues that the Tax Injunction Act and principles of comity bar Commerce's suit from proceeding in a federal court. Commerce counters that a federal court has jurisdiction to hear their suit. In this case, the U.S. Supreme Court will clarify the scope of the federal judiciary's authority to hear lawsuits regarding state tax law.

Reed Elsevier v. Muchnick (08-103)

in

Oral argument: Oct. 7, 2009

Appealed from: United States Court of Appeals for the Second Circuit (Nov. 29, 2007)

COPYRIGHT ACT, COPYRIGHT INFRINGEMENT, SUBJECT MATTER JURISDICTION, CLASS ACTION

Freelance writers, led by Letty Cotton Pogrebin, brought a class action lawsuit against publishers, led by Reed Elsevier, Inc., for copyright infringement, claiming that the publishers electronically reproduced their works without authorization. The majority of the claims in the class related to alleged infringements of unregistered copyrights. With the approval of the District Court, the parties settled the lawsuit. The Second Circuit held, pursuant to 17 U.S.C. § 411(a), that the District Court lacked subject matter jurisdiction to certify a class or to approve a settlement with respect to claims arising from unregistered copyrights. The Supreme Court’s interpretation of § 411(a) will determine whether claims relating to unregistered copyrights can be settled in class actions along with claims arising from registered work. An affirmation of the Second Circuit’s opinion may make settlements more difficult.

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