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16 St. Thomas L. Rev. 607 (2003-2004)
International Implications of the Alien Tort Statute

handle is hein.journals/stlr16 and id is 621 raw text is: INTERNATIONAL IMPLICATIONS OF THE ALIEN TORT STATUTE' GARY CLYDE HUFBAUER* & NICHOLAS K. MITROKOSTAS+ The district courts shall have original jurisdiction of any civil action by an alien for a tort only, committed in violation of the law of nations or a treaty of the United States.2 I. INTRODUCTION The Alien Tort Statute (ATS),3 a one-sentence law penned in 1789, could devastate global trade and investment - more than two hundred years after it was enacted. Unless curbed by the Supreme Court or the Congress, the ATS could be invoked by thousands of Chinese citizens, organized by plaintiffs' attorneys and supported by international human rights groups. In a class action lawsuit filed in federal court, pursuant to the ATS, the Chinese plaintiffs might allege that multinational corporations (MNCs) violated international law by abetting China's denial of political rights, observing China's restrictions on trade unions, and impairing the Chinese environment. The complaint might claim actual damages of $6 billion and punitive damages of $20 billion. To minimize their potential liability, the defendant corporations could settle for an intermediate amount, such as $10 billion. Rather than fight lengthy battles in federal courts, as well as in the court of public opinion, targeted MNCs may curtail their investments in countries with less-than-perfect records in human and labor rights and respect for political and environmental norms. Corporate lawyers might 1. This Article is based on a 2003 study, Gary Clyde Hufbauer & Nicholas K. Mitrokostas, Awakening Monster: The Alien Tort Statute of 1789, Policy Analyses in International Economics 70, INST. INT'L ECON. (July 2003). * Gary Clyde Hufbauer, Reginald Jones Senior Fellow, Institute for International Economics, Washington, D.C. He is a co-author of ECONOMIC SANCTIONS RECONSIDERED, 3d. ed. (forthcoming). + Nicholas K. Mitrokostas, Law Clerk to the Honorable Judith A. Cowin, Supreme Judicial Court of Massachusetts. This Article does not reflect the views of the Commonwealth of Massachusetts or the Justices of the Supreme Judicial Court. 2. 28 U.S.C. § 1350 (2000); see also Act of Sept. 24, 1789, ch. 20, 9(b), 1 Stat. 73, 77. Some courts have referred to the statute as the Alien Tort Claims Act (ATCA) or the Alien Tort Act (ATA). For an excellent overview of the statute and its history, see CARTER ET AL., INTERNATIONAL LAW 229 & 251 (4th ed. 2003). 3. 28 U.S.C. § 1350 (2000).

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