Law Commons^™

Global Climate Litigation Report: 2023 Status Review, Michael Burger, Maria Antonia Tigre

Sabin Center for Climate Change Law

This Global Climate Litigation Report: 2023 Status Review, which updates previous United Nations Environment Programme reports published in 2017 and 2020, provides an overview of the current state of climate change litigation and an update of global climate change litigation trends. It provides judges, lawyers, advocates, policymakers, researchers, environmental defenders, climate activists, human rights activists (including women’s rights activists), NGOs, businesses and the international community with an essential resource to understand the current state of global climate litigation, including descriptions of the key issues that courts have faced in the course of climate change cases.

The Long Tail Of World War Ii: Jus Post Bellum In Contemporary East Asia, Timothy Webster

Faculty Scholarship

The shadow of World War II still looms over East Asia. Unlike the West, issues of state accountability, corporate liability, and individual reparation roil the victims, governments, and civil society organizations. It stills form a critical, often controversial, backdrop for international relations among China, Japan, Korea, and other Asian nations. This chapter fills an important gap by focusing on jus post bellum outside of the West. The chapter examines the results, motivations, and achievements of civil litigation, namely approximately one hundred World War II reparations lawsuits filed in Japan. In so doing, it answers three related questions. Why does World …

Disaggregating Corporate Liability: Japanese Multinationals And World War Ii, Timothy Webster

Faculty Scholarship

The past two decades have witnessed unprecedented attention to corporate legal liability for human rights abuses. Yet the supporting jurisprudence is relatively thin. Scholars generally agree that corporations can incur legal liability for serious violations of international human rights law. But courts find any number of ways to avoid such a result. This Article finds qualified support for an emergent norm of corporate civil liability from recent litigation in Japan. Specifically, the transnational war reparations litigation of the past three decades has yielded a consistent jurisprudence of qualified liability. Courts detail the abuses committed by Japan's largest multinational corporations, and …

Texas Gulf Sulphur And The Genesis Of Corporate Liability Under Rule 10b-5, Adam C. Pritchard, Robert B. Thompson

Articles

This Essay explores the seminal role played by SEC v. Texas Gulf Sulphur Co. in establishing Rule 10b-5’s use to create a remedy against corporations for misstatements made by their officers. The question of the corporation’s liability for private damages loomed large for the Second Circuit judges in Texas Gulf Sulphur, even though that question was not directly at issue in an SEC action for injunctive relief. The judges considered both, construing narrowly “in connection with the purchase or sale of any security,” and the requisite state of mind required for violating Rule 10b-5. We explore the choices of the …

Texas Gulf Sulphur And The Genesis Of Corporate Liability Under Rule 10b-5, Adam C. Pritchard, Robert B. Thompson

Law & Economics Working Papers

This Essay explores the seminal role played by SEC v. Texas Gulf Sulphur in establishing Rule 10b-5’s use to create a remedy against corporations for misstatements made by their officers. The question of the corporation’s liability for private damages loomed large for the Second Circuit judges in Texas Gulf Sulphur, even though that question was not directly at issue in an SEC action for injunctive relief. The judges considered both construing narrowly "in connection with the purchase or sale of any security," and the requisite state of mind required for violating Rule 10b-5. We explore the choices of the Second …

Corporate Liability For Human Rights Violations: The Future Of The Alien Tort Claims Act, Milena Sterio

Law Faculty Articles and Essays

This paper addresses complex legal issues in light of and in the context of Jesner v. Arab Bank, a case involving the scope of corporate liability for human rights abuses under the Alien Tort Claims Act (ATCA). Part I provides a brief overview of the Jesner case. Part II outlines the case Kiobel v. Royal Dutch Petroleum Co. and its holding. Part III discusses Kiobel's shortcomings, including the vagueness of its "touch and concern" test and its failure to specify which law—international or domestic—applies to the issue of corporate liability under the ATCA. Part IV then proposes other …

The Impact Of Recent Sec Financial Reporting Probes On Shareholder Wealth: Companies, Competitors, And Consequences, Stephen Warde

Honors Projects in Finance

During an undergraduate college career, an accounting major devotes a great part of his or her time to learning how publicly traded businesses prepare financial statements in compliance with Generally Accepted Accounting Principles (GAAP) and federal securities laws. These accounting principles, standards, and procedures are ultimately enforced by the U.S. Securities and Exchange Commission (SEC) to protect investors, uphold fair markets, and promote public trust in the capital market system. To fulfill its mission, the SEC Division of Enforcement conducts investigations into possible violations of the federal securities laws and administers enforcement actions. Naturally, SEC investigations and the anticipation of …

Recent Reforms Of Switzerland's Anti-Corruption Laws: What They Mean For International Sports Organizations, Nicole Gütling

Center for the Advancement of Public Integrity (Inactive)

Switzerland is perceived as one of the least corrupt countries in the world based on international rankings. According to the “Corruption Perception Index” of Transparency International, Switzerland has regularly been rated among the top eight least corrupt countries since 2009. Even before then, since 1995 in fact, Switzerland has consistently received good rankings on integrity. However, recent corruption allegations in the world of football, particularly the cases involving the FIFA World Cup 2018 and 2022, have led to international scrutiny of the effectiveness of Switzerland’s anti-money laundering and anti-corruption regimes. This issue is particularly significant for Switzerland, which is home …

Corruption, Corporations, And The New Human Right, Andrew B. Spalding

Law Faculty Publications

We should no longer expect the Alien Tort Statute to be the principal federal statute that deters overseas corporate rights violations. That distinction rightly belongs to the Foreign Corrupt Practices Act, an antibribery statute that rests on undisputed principles of corporate liability, contains a clear congressional statement of extraterritorial application, and routinely collects penalties from multinational corporate defendants. Scholars have not associated the FCPA with human rights, owing principally to a thin understanding of rights theory. But freedom from corruption can and should be understood as a human right, one that is as old as social contract theory but new …

From Kiobel Back To Structural Reform: The Hidden Legacy Of Holocaust Restitution Litigation, Leora Bilsky, Rodger D. Citron, Natalie R. Davidson

Scholarly Works

This paper offers a new approach to the issue of transnational corporate liability for human rights violations and more generally an inquiry into the place of domestic legal experiences in theorizing about transnational law. Grounded in a study of the Holocaust restitution litigation of the 1990s, we explain corporate liability as a type of bureaucratic liability and explore in depth the relationship between the Holocaust litigation and the theory of structural reform litigation developed in the U.S. to address the bureaucratic structure of rights violations. We read the restitution litigation in light of pluralist reformulations of structural reform, in which …

Understanding And Mitigating The Negative Impacts Of Product Recalls In The Global Supply Chain, Emily Carow

Honors Projects in Management

Product recalls can be detrimental to any company; the event can be costly and often causes a loss of company reputation, customer trust and loyalty, and sometimes a loss of customer lives. With the number of product recalls on the rise, the issue has become of utmost importance, and although government agencies are set in place to protect the customers, there is no such agency to act in the best interest of the company experiencing the recall (Sowinski, 2012). Therefore, understanding best practices for the prevention of, reaction to, and recovery from product recalls can be extremely beneficial to a …

Kiobel V. Royal Dutch Petroleum: The Alien Tort Statute's Jurisdictional Universalism In Retreat, Kenneth Anderson

Articles in Law Reviews & Other Academic Journals

Kiobel v. Royal Dutch Petroleum (Shell), a long-running Alien Tort Statute (ATS) case brought by Nigerian plaintiffs alleging aiding and abetting liability against various multinational oil companies for human rights violations of the Nigerian government in the 1990s, including a non-US Shell corporation, first came before the US Supreme Court in the 2011-2012 term, following a sweeping Second Circuit holding that there was no "liability for corporations" under the ATS. In oral argument, however, several Justices asked a different question from corporate liability: noting that the case involved foreign plaintiffs, foreign defendants, and conduct taking place entirely on foreign sovereign …

License To Kill? Corporate Liability Under The Alien Tort Claims Act?, Kevin Golden

In the Balance

Because Kiobel removed corporate defendants from the scope of civil liability under the ATS, and because a corporation is not a person who can be charged, convicted and imprisoned for a crime, it effectively placed large multinational corporations above the law. Kiobel v. Royal Dutch Petroleum Co., 621 F.3d 111, 145 (2d Cir. 2010). In Part II of this article, I will provide a necessary overview of the history of the ATS and its evolution into modern-day relevance. I will discuss the state of ATS law as it pertains to corporations in Part III. Lastly, I will discuss the Kiobel …

Remarks On The Gjil Symposium On Corporate Responsibility And The Alien Tort Statute, Vivian Grosswald Curran

Articles

The following essay is a summary of remarks I delivered at the symposium on corporate responsibility and the Alien Tort Statute held at Georgetown Law School after the first Kiobel v. Royal Dutch Petroleum Co. Supreme Court oral argument. My remarks addressed the importance of considering foreign national law when judging the meaning of universal civil jurisdiction, and, implicitly, the inextricability of domestic from international law matters.

Leverage, Sanctions, And Deterrence Of Accounting Fraud, Urska Velikonja

Faculty Scholarship

The empirical evidence suggests that firms overpay for fraud liability and overspend on internal compliance mechanisms (which are not very effective at preventing fraud). Yet, insiders who commit fraud are rarely sanctioned for their wrongdoing, which produces moral hazard and individual underdeterrence.
Two factors explain the failure to sanction managers who commit fraud. First, managers control the information revealing who was involved in account fraud and, thus, can impede external investigations and sanctions. Second, managers also influence whether the firm will investigate and sanction accounting fraud internally. Managers’ control over settlement and the availability of directors’ and officers’ insurance further …

Kiobel And Corporate Immunity Under The Alien Tort Statute: The Struggle For Clarity Post-Sosa, Dorothy S. Lund

Faculty Scholarship

In September 2010, a two-judge Second Circuit majority ruled that corporations are immune from liability under the Alien Tort Statute (“ATS”). This statute, which grants aliens access to federal district courts, has emerged as a controversial tool for international norm enforcement in the last thirty years. The unexpected decision to foreclose corporate liability has generated a wave of criticism from human rights activists and international law scholars who claim that the decision is grounded in a fundamental misunderstanding of international law.

This commentary examines the Kiobel decision against other recent interpretations of the ATS, especially those following the Supreme Court’s …

Intraportfolio Litigation Essay, Amanda M. Rose, Richard Squire

Faculty Scholarship

The modern trend is for investors to diversify. Shareholders who own one S&P 500 firm tend to own many of the others as well. This trend casts doubt on the traditional compensation and deterrence rationales for legal rules that hold corporations liable for the acts of their agents. Today, when A Corp sues B Corp (for breach of contract, theft of trade secrets, or any other legal wrong), many of the same shareholders own both the plaintiff and the defendant. For these shareholders, damages just shift money from one pocket to another, minus of course lawyer fees. We offer here …

Translating Unocal: The Expanding Web Of Liability For Business Entities Implicated In International Crimes, Anita Ramasastry, Robert C. Thompson, Mark B. Taylor

Articles

The Ninth Circuit ruled that a corporation could be held liable under the federal Alien Tort Claims Act for its complicity in a violation of international criminal law occurring outside the U.S. (Doe I v. Unocal Corp., 395 F.3d 932 (9th Cir. 2002)). Since then, litigants have filed increasing numbers of such cases. These cases raise two questions: (1) Is the United States the only country that provides judicial accountability for business entities involved in international crimes abroad? and (2) How are other countries "translating" the basic kinds of accountability that Unocal recognized into their own legal systems? This Article …

Arbitrating Human Rights, Roger P. Alford

Journal Articles

Corporate liability for human rights abuses is one of the most important developments in current international law and practice. With the advent of human rights litigation against corporations, there is now the prospect of a deep-pocket defendant that is complicit in grave human rights abuses, subject to personal jurisdiction, and not immune from suit. Indeed, if a corporation is accused of "aiding and abetting" human rights abuses, this is all but a concession that the corporate actor is not the principal wrong-doer. It is of course possible that this controversial trend toward corporate responsibility may reflect a genuine concern about …

Jerry Phillips' Product Line Continuity And Successor Corporation Liability: Where Are We Twenty Years Later, George Kuney

Scholarly Works

No abstract provided.

Jerry Phillips' Product Line Continuity And Successor Corporation Liability: Where Are We Twenty Years Later, George Kuney

College of Law Faculty Scholarship

No abstract provided.

Minimizing Corporate Liability Exposure When The Whistle Blows In The Post Sarbanes-Oxley Era, Marc I. Steinberg, Seth A. Kaufman

Faculty Journal Articles and Book Chapters

Over the past few years, numerous newspapers and magazines have featured stories discussing whistleblowers. From Sherron Watkins at Enron to Cynthia Cooper at Worldcom, employees who reported perceived corporate fraud have received widespread attention. With this increased public focus, Congress chose to provide statutory protection in the whistleblower corporate or securities law context through enactment of the Sarbanes-Oxley Act of 2002 (SOX).

Prior to SOX, federal and state statutes (as well as common law) existed to protect whistleblowers in specific settings. For example, the False Claims Act provides protection to individuals who report fraudulent activities committed against the federal government. …

The Irrefutable Logic Of Judgment Proofing: A Reply To Professor Schwarcz, Lynn M. Lopucki

UF Law Faculty Publications

In The Inherent Irrationality of Judgment Proofing, Professor Steven L. Schwarcz raises interesting new arguments against my death of liability thesis. The sheer number of those arguments makes it impossible for me to respond to all of them. The core of Schwarcz's insight is to divide judgment proofing structures into those negotiated at arm's length and those constructed within a single corporate group. I consider his arguments regarding the first set of structures in Part I and the second set in Part II.

The Essential Structure Of Judgment Proofing, Lynn M. Lopucki

UF Law Faculty Publications

This article argues that substantially all judgment proofing can be described through a single model: a symbiotic relationship between two or more entities, in which one of the entities generates disproportionately high risks of liability while the other owns a disproportionately high level of assets. The two entities typically are joined by a contract that allocates the profits gained from externalization of the tort liability. Proof that the model is workable even in large businesses is made by demonstrating that a single business can be divided into two such entities without altering its components or its function. The courts cannot …

Is Unlimited Liability Really Unattainable: Of Long Arms And Short Sales, Mark R. Patterson

Faculty Scholarship

Unlimited shareholder liability would radically change the way we look at corporations. In an unlimited-liability world, one part at least of the veil between corporation and shareholder would no longer exist. As a result, the relationship between corporation and shareholder would be, both in law and in fact,much closer than it is currently. The two parts of this change-the legal and the factual-would reinforce each other. The legal change would be reflected in court decisions enforcing unlimited liability Regardless of the exact contours that decisions in this area took initially, there would be at least some shareholders-mutual funds, for example--whom …

Product Liability And The Passage Of Time: The Imprisonment Of Corporate Rationality, James A. Henderson Jr.

Cornell Law Faculty Publications

In theory, the product liability system should induce manufacturers to invest in product safety at the socially optimal level, i.e., the level at which the marginal cost of the investment equals the marginal cost of product-related accidents thereby avoided. In reality, however, this inducement may be weakened by countervailing incentives, causing manufacturers in marginal cases to forgo investment that would appear to be cost-effective. Professor Henderson argues that in these cases corporate rationality has been "imprisoned" by two "real-world" phenomena. First, a manufacturer may postpone product improvements lest they be viewed by potential claimants and juries as a confession of …