JOSÉ A. CABRANES, Circuit Judge:
The question presented is whether to issue a writ of mandamus to resolve in favor of the defendants this long-lived litigation under the Alien Tort Statute ("ATS") — a statute, passed in 1789, that was rediscovered and revitalized by the courts in recent decades to permit aliens to sue for alleged serious violations of human rights occurring abroad. The statute was first deployed in 1980 against individual defendants alleged to have perpetrated crimes against humanity, and beginning in 1997, some courts have extended its reach to suits against corporate defendants as well. See Kiobel v. Royal Dutch Petroleum Co., 621 F.3d 111, 116 (2d Cir.2010), aff'd on other grounds, ___ U.S. ___, 133 S.Ct. 1659, 185 L.Ed.2d 671 (2013). We consider this question in light of the Supreme Court's recent decision that federal courts may not, under the ATS, recognize common-law causes of action for conduct occurring in another country.
In these putative class-action suits brought on behalf of those harmed by the decades-long South African legal regime known as "apartheid," the plaintiffs assert that the South African subsidiary companies of the named corporate defendants — Daimler, Ford, and IBM (the "defendants")
The plaintiffs brought these suits over ten years ago in federal court under the ATS, which confers federal jurisdiction over "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." 28 U.S.C. § 1350. Although the plaintiffs did not claim that any of the South African government's alleged violations of the law of nations
Although parties usually cannot appeal while district court proceedings are ongoing, the defendants sought immediate review of the District Court's denial of their motion to dismiss in this Court, first through a motion to certify an interlocutory appeal, which the District Court denied, and thereupon through either a writ of mandamus or under the "collateral order" doctrine
Now on appeal for over four years, this case has been overtaken by recent events. Most significantly, the Supreme Court held, as a matter of United States law, that federal courts may not, under the ATS, recognize common-law causes of action for conduct occurring in the territory of another sovereign. Kiobel v. Royal Dutch Petroleum Co., ___ U.S. ___, 133 S.Ct. 1659, 1668-69, 185 L.Ed.2d 671 (2013).
The opinion of the Supreme Court in Kiobel plainly bars common-law suits, like this one, alleging violations of customary international law based solely on conduct occurring abroad. Because of that unambiguous holding, the defendants will be able to obtain their desired relief (dismissal of all claims) in the District Court through a motion for judgment on the pleadings, without resort to a writ of mandamus. The defendants' request for mandamus relief is therefore denied. For the same reason, we need not consider the defendants' argument under the collateral order doctrine. Instead, we vacate our stay on the District Court proceedings so that the defendants may move for judgment on the pleadings. We reserve the question whether we have jurisdiction under the collateral order doctrine and hold the putative appeal under that doctrine in abeyance pending further notice from the parties.
These consolidated cases come to us as a continuation of litigation on which the District Court, this Court, and even the Supreme Court, have already spoken at length. See Part I.B., post. In the latest iteration of pleadings, which have been amended twice, the plaintiffs assert that the South African subsidiaries of the various corporate defendants aided and abetted in violations of customary international law during the repressive "apartheid" legal regime in South Africa. The District Court summarized these allegations as follows:
In re South African Apartheid Litig., 617 F.Supp.2d at 241-43.
"The tortuous procedural history of these cases dates back to the filing of complaints in 2002." In re South African Apartheid Litig., 624 F.Supp.2d 336, 338 (S.D.N.Y.2009).
On remand, the plaintiffs filed an amended complaint, this time naming only eight defendants.
We initially heard argument on a variety of preliminary motions on September 1, 2009. Only a day after argument, we received a letter from the South African government reversing its earlier position and declaring that it was "now of the view that [the United States District Court for the Southern District of New York] is an appropriate forum to hear the remaining claims of aiding and abetting in violation of international law." See Letter of Jeffrey Thamsanqa Radebe, Minister of Justice and Constitutional Development, Sept. 2, 2009; see also Sosa, 542 U.S. at 733 n. 21,
Less than a year later, this Court (in a separate case) held that "the Alien Tort Statute does not provide subject matter jurisdiction over claims against corporations" based on asserted violations of customary international law. Kiobel v. Royal Dutch Petroleum Co., 621 F.3d 111, 149 (2d Cir.2010), reh'g en banc denied, 642 F.3d 379 (2d Cir.2011). The Supreme Court granted certiorari and, after reargument,
The defendants seek a writ of mandamus under the All Writs Act, 28 U.S.C. § 1651,
As a general matter, denials of a motion to dismiss are not appealable as "final decisions" of the district courts under 28 U.S.C. § 1291.
If a district court refuses certification, or certification is not otherwise available, however, then a party may petition for a writ of mandamus — "a drastic and extraordinary remedy reserved for really extraordinary causes." Cheney v. U.S. Dist. Ct. for D.C., 542 U.S. 367, 380, 124 S.Ct. 2576, 159 L.Ed.2d 459 (2004) (internal quotation marks omitted); see also Will v. United States, 389 U.S. 90, 107, 88 S.Ct. 269, 19 L.Ed.2d 305 (1967) (noting that the writ of mandamus is one of "the most potent weapons in the judicial arsenal"); note 15, ante (common-law remedy codified in the All Writs Act). Three conditions circumscribe use of the writ:
Cheney, 542 U.S. at 380-81, 124 S.Ct. 2576 (alternations, internal quotation marks, and citations omitted). Mandamus relief is appropriate "in extraordinary circumstances," when, for example, a district court's order "amounts to a judicial usurpation of power or a clear abuse of discretion, or otherwise works a manifest injustice." Mohawk Indus., 558 U.S. at 111, 130 S.Ct. 599 (alteration and internal quotation marks omitted).
Two aspects of ATS jurisprudence, however, urge greater appellate oversight through use of mandamus in appropriate cases. First, ATS suits often create particular "risks of adverse foreign policy consequences," Sosa, 542 U.S. at 728, 124 S.Ct. 2739, obliging courts to be "particularly wary of impinging on the discretion of the Legislative and Executive Branches in managing foreign affairs," id. at 727, 124 S.Ct. 2739. This risk of treading into matters within the province of other branches of government, and intruding into delicate areas of intergovernmental relations, warrants closer appellate scrutiny through supervisory mandamus review. See Cheney, 542 U.S. at 380-82, 124 S.Ct. 2576. Appellate courts have therefore been less hesitant to issue the writ when a lower-court decision threatens to affect the foreign policy of the United States. See, e.g., Ex parte Republic of Peru, 318 U.S. 578, 586, 63 S.Ct. 793, 87 L.Ed. 1014 (1943); In re Austrian, German Holocaust Litig., 250 F.3d 156, 163-65 (2d Cir.2001); Abelesz v. OTP Bank, 692 F.3d 638, 651 (7th Cir.2012). Second, and relatedly, the ATS places federal judges in an unusual lawmaking role as creators of federal common law. See Sosa, 542 U.S. at 724-25, 124 S.Ct. 2739. This exercise of authority by federal courts elevates "the danger of unwarranted judicial interference in the conduct of foreign policy," Kiobel, 133 S.Ct. at 1664, again warranting
Such concerns are present here. In addition to the federal common-law aspect of these ATS suits, the United States government filed a statement of interest on October 30, 2003, articulating its position that "continued adjudication of [these] matters risks potentially serious adverse consequences for significant interests of the United States."
Id. at 255-56. Such important foreign policy interests as those raised here cannot be vindicated by waiting until final judgment.
Nonetheless, we need not wade into the merits of the defendants' various arguments, because we are not persuaded that mandamus is the only "adequate means to attain the relief" that they desire. For the reasons explained in the following section, see Part II.A.ii., and in light of the Supreme Court's holding in Kiobel that federal courts may not, under the ATS, recognize common-law causes of action for conduct occurring in the territory of another sovereign, Kiobel, 133 S.Ct. at 1668-69, defendants can seek the dismissal of all of the plaintiffs' claims, and prevail, prior to discovery, through a motion for judgment on the pleadings under Rule 12(c) of the Federal Rules of Civil Procedure.
As we have now made clear, Kiobel forecloses the plaintiffs' claims because the plaintiffs have failed to allege that any relevant conduct occurred in the United States. The plaintiffs resist this obvious impact of the Kiobel holding on their claims. The Supreme Court's decision, they argue, does not preclude suits under the ATS based on foreign conduct when the defendants are American nationals, or where the defendants' conduct affronts significant American interests identified by the plaintiffs. See Plaintiffs' Letter Br. at 6-13. Curiously, this interpretation of Kiobel arrives at precisely the conclusion reached by Justice Breyer, who, writing for himself and three colleagues, only concurred in the judgment of the Court affirming our decision to dismiss all remaining claims brought under the ATS. See Kiobel, 133 S.Ct. at 1671 (Breyer, J., concurring). The plaintiffs' argument, however, seeks to evade the bright-line clarity of the Court's actual holding — clarity that ensures that the defendants can obtain their desired relief without resort to mandamus. We briefly highlight why the plaintiffs' arguments lack merit.
The Supreme Court's Kiobel decision, the plaintiffs assert, "adopted a new presumption that ATS claims must `touch and concern' the United States with `sufficient force' to state a cause of action." Plaintiffs Letter Br. 6 (quoting Kiobel, 133 S.Ct. at 1669). The plaintiffs read the opinion of the Court as holding only that "mere corporate presence" in the United States is insufficient for a claim to "touch and concern" the United States, but that corporate citizenship in the United States is enough. Id. at 11 ("[I]nternational law violations committed by U.S. citizens on foreign soil `touch and concern' U.S. territory with `sufficient force' to displace the Kiobel presumption."). Reaching a conclusion similar to that of Justice Breyer and the minority of the Supreme Court in Kiobel, the plaintiffs argue that whether the relevant conduct occurred abroad is simply one prong of a multi-factor test, and the ATS still reaches extraterritorial conduct when the defendant is an American national. Id. at 8-11.
We disagree. The Supreme Court expressly held that claims under the ATS cannot be brought for violations of the law of nations occurring within the territory of a sovereign other than the United States. Kiobel, 133 S.Ct. at 1662, 1668-69. The majority framed the question presented in these terms no fewer than three times
In the conclusion of its opinion, the Supreme Court stated in dicta that, even when claims brought under the ATS "touch and concern the territory of the United States, they must do so with sufficient force to displace the presumption against extraterritorial application."
The plaintiffs also assert that "the Kiobel presumption is displaced here" because of the compelling American interests in supporting the struggle against apartheid in South Africa. Plaintiffs' Letter Br. 11. These case-specific policy arguments miss the mark. The canon against extraterritorial application is "a presumption about a statute's meaning." Morrison, 130 S.Ct. at 2877 (emphasis supplied). Its "wisdom," the Supreme Court has explained, is that, "[r]ather than guess anew in each case, we apply the presumption in all cases, preserving a stable background against which Congress can legislate with predictable effects." Id. at 2881 (emphasis supplied). For that reason, the presumption against extraterritoriality applies to the statute, or at least the part of the ATS that "carries with it an opportunity to develop common law," Sosa, 542 U.S. at 731 n. 19, 124 S.Ct. 2739, and "allows federal courts to recognize certain causes of action," Kiobel, 133 S.Ct. at 1664. In order "to rebut the presumption, the ATS [i.e., the statute] would need to evince a clear indication of extraterritoriality." Id. at 1665 (quotation marks omitted). Applying this approach in Kiobel, the Supreme Court held as a matter of statutory interpretation that the implicit authority to engage in common-law development under the ATS does not include the power to
Finally, the plaintiffs argue that the defendants "took affirmative steps in this country to circumvent the sanctions regime, though discovery would be necessary to determine the full scope of such U.S.-based conduct." Plaintiffs' Letter Br. 13. Without additional explanation, the plaintiffs refer to various paragraphs in the complaints asserting that the American defendants continued to supply the South African government with their products, notwithstanding various legal restrictions against trade with South Africa. See Balintulo Compl. ¶¶ 246-50 (Ford), App'x 494-95; id. ¶¶ 196, 198, 212(IBM), App'x 483, 486; Ntsebeza Compl. ¶ 128 (Ford), App'x 199; id. ¶¶ 139-41(IBM), App'x 202-03.
None of these paragraphs, however, ties the relevant human rights violations to actions taken within the United States. The complaint alleges only vicarious liability of the defendant corporations based on the actions taken within South Africa by their South African subsidiaries. See In re South African Apartheid Litig., 617 F.Supp.2d 228, 275 (S.D.N.Y.2009) ("[A]llegations [of an agency relationship] are sufficiently plausible to allow this claim to proceed on a theory of vicarious liability."). Because the defendants' putative agents did not commit any relevant conduct within the United States giving rise to a violation of customary international law — that is, because the asserted "violation[s] of the law of nations occurr[ed] outside the United States," Kiobel, 133 S.Ct. at 1669 — the defendants cannot be vicariously liable for that conduct under the ATS.
The defendants also assert that the district court's order denying their motion to dismiss is a "collateral order," subject to immediate appellate review. In contrast to the "discretionary review mechanisms" of certification and mandamus, Mohawk Indus., 558 U.S. at 111, 130 S.Ct. 599, collateral order appeals are taken "as of right," id. at 112, 130 S.Ct. 599, and do not depend on an "`individualized jurisdictional inquiry,'" id. at 107, 130 S.Ct. 599 (quoting Coopers & Lybrand v. Livesay, 437 U.S. 463, 473, 98 S.Ct. 2454, 57 L.Ed.2d 351 (1978)). The parties have presented strong arguments on each side regarding the immediate appealability of the District Court's order under the collateral order doctrine,
In these circumstances, the interests of judicial economy, and of the parties, are best served by holding this putative appeal under the collateral order doctrine in abeyance and enabling the District Court to consider a motion for judgment on the pleadings to dismiss the plaintiffs' remaining claims.
To summarize:
Because the Kiobel decision, combined with the opportunity to move for dismissal in the District Court, provides an adequate ground for dismissing all remaining claims, the defendants' petition for a writ of mandamus is
The Balintulo plaintiffs sued twenty-three named foreign and domestic corporations: AEG Daimler-Benz Industrie, Barclays National Bank Ltd., British Petroleum, PLC, ChevronTexaco Corp., ChevronTexaco Global Energy, Inc., Citigroup, Inc., Commerzbank, Credit Suisse Group, DaimlerChrysler AG, Deutsche Bank AG, Dresdner Bank AG, Exxon Mobil Corp., Fluor Corp., Ford Motor Co., Fujitsu, Ltd., General Motors Corp., IBM Corp., J.P. Morgan Chase, Rheinmetall Group AG, Rio Tinto Group, Shell Oil Co., Total-Fina-Elf, and UBS AG.
The Ntsebeza plaintiffs sued fifty-five defendants, including Amdahl Corp., American Isuzu Motors, Inc., Anglo-American Corp., Banque Indo Suez, Bank of America, N.A., Barclays Bank PLC, Citigroup Inc., Bristol-Meyers Squibb Co., Burroughs Corp., Chemical Bank & Chase Manhattan Bank, Chevron Texaco Corp., Citigroup AG, Coca-Cola Co., Colgate Palmolive, Commerzbank AG, Crédit Agricole S.A., Crédit Lyonnais, Credit Suisse Group, Daimler Chrysler Corp., De Beers Corp., Deutsche Bank AG, The Dow Chemical Co., Dresdner Bank AG, E.I. Dupont de Nemours and Co., EMS-Chemie (North America) Inc., Exxon Mobil Corp., Ford Motor Co., General Electric Co., General Motors Corp., Hewlett-Packard Co., Holcim, Inc., Holcim, Ltd., Honeywell International, Inc., ICL, Ltd., J.P. Morgan, IBM Corp., Manufacturers Hanover Corp., Merrill Lynch & Co. Inc., Minnesota Mining and Manufacturing Co. (3M Co.), National Westminster Bank PLC, Nestle USA, Inc., Novartis AG, Oerlikon Bührle AG, Oerlikon Contraves AG, Royal Dutch Petroleum Co., Schindler Holding AG, Securities Inc., Shell Oil Co., Shell Petroleum, Inc., Shell Transport & Trading Co. PLC, Sperry Corp., Standard Chartered, P.L.C., Sulzer AG, UBS AG, Unisys Corp., Xerox Corp., along with unnamed corporations and various named and unnamed corporate officers.
The three defendants in the instant appeal — Daimler, Ford, and IBM — are all that remain.
Petition for Writ of Certiorari, Kiobel v. Royal Dutch Petroleum Co., No. 10-1491, 2011 WL 2326721, at *i.
The Court heard argument on February 28, 2012, and then on March 5, 2012, ordered supplemental briefing and reargument to consider the following question:
Kiobel v. Royal Dutch Petroleum Co., ___ U.S. ___, 132 S.Ct. 1738, 182 L.Ed.2d 270 (2012) (Mem.). The Court heard reargument on October 1, 2012, and issued its decision on April 17, 2013. See Kiobel v. Royal Dutch Petroleum Co., ___ U.S. ___, 133 S.Ct. 1659, 185 L.Ed.2d 671 (2013).
Accordingly, mandamus relief can be appropriate even when the district court's opinion resolved "novel legal questions that were unsettled" at the time of the district court's decision. In re City of New York, 607 F.3d at 947. Indeed, because "the writ [can] serve[] a vital corrective and didactic function," Will, 389 U.S. at 107, 88 S.Ct. 269, orders are sometimes more appropriate candidates for mandamus when they have "raised a legal issue of first impression in this circuit." Chase Manhattan Bank, N.A. v. Turner & Newall, PLC, 964 F.2d 159, 163 (2d Cir.1992); see also In re Sims, 534 F.3d at 128-29; In re United States, 903 F.2d 88, 89 (2d Cir.1990). The Supreme Court, for instance, has distinguished between "the ordinary situation ... [where] mandamus is not an appropriate remedy, absent, of course, a clear abuse of discretion," from "special circumstances" where immediately reviewing a question bearing on the lower court's power would "avoid piecemeal litigation and ... settle new and important problems." Schlagenhauf v. Holder, 379 U.S. 104, 111, 85 S.Ct. 234, 13 L.Ed.2d 152 (1964); see also In re S.E.C., 374 F.3d 184, 188 n. 2 (2d Cir.2004).
Id. Viewing this paragraph in context, the first sentence relates to this case, and the second sentence relates to ATS cases not already "barred" because all of the relevant conduct occurred abroad. This dichotomy is evident from (1) the contrast between the opening clauses in these two sentences; (2) the Court's earlier conclusion that "petitioner's case ... is barred" based solely on the extraterritoriality of the relevant conduct, without consideration of whether other aspects of the claim might "touch and concern" the United States; and (3) the Court's use of the general phrase "they must do so," rather than a case-specific phrase, such as "they do not do so." Consistent with this view, the reference to corporate presence indicates that mere corporate presence in the United States is not "relevant conduct" when deciding whether an ATS claim avoids the presumption against extraterritoriality.