Ford, IBM win dismissal of 12-year lawsuit over apartheid abuses 

law

A Manhattan federal judge has dismissed a 12-year-old lawsuit accusing Ford Motor Co (F.N) and IBM Corp (IBM.N) of encouraging human rights abuses in apartheid-era South Africa, reluctantly concluding that the case does not belong in U.S. courts.

U.S. District Judge Shira Scheindlin on Thursday said the black South Africans who brought the case did not show “relevant conduct” by Ford and IBM within the United States to justify holding the companies liable.

The plaintiffs had accused Ford, IBM and other companies of having between the 1970s and early 1990s aided South Africa’s former apartheid government in abuses such as killings and torture, by having made military vehicles and computers for government security forces.

“That these plaintiffs are left without relief in an American court is regrettable,” Scheindlin wrote. “But I am bound to follow [legal precedent], no matter what my personal view of the law may be.”

The case had been brought under the Alien Tort Statute, a 1789 law that lets non-U.S. citizens pursue some cases in U.S. courts over alleged violations of international law.
“It has been 12 years. We’re really disappointed, devastated by the decision,” said Diane Sammons, a partner at Nagel Rice in Roseland, New Jersey, who represents some plaintiffs.
“The end result of the ruling is that corporations can act abroad with impunity, even if they’re totally controlling the activities of their foreign subsidiaries,” she added. “I don’t think the Supreme Court’s decision was that narrowly defined.”

Source: Reuters

Leave a Comment


Broker Cyprus TopFX