Archive for the ‘choice of forum’ Category

Here Today, Guatemala: HudBay Minerals withdraws forum non conveniens motion in Canadian international human rights case

February 26, 2013

Photo of Angelica Choc, Adolfo Ich Chamán’s widow. (Dec. 1, 2010) Original image via mimundo.org.

Jeff Gray at the Globe & Mail, reports on three pending cases involving HudBay Minerals Inc. ["HudBay"] brought by Mayan Q’eqchi’ individuals from Guatemala, who have alleged human rights abuses were committed against them by the subsidiaries of Canadian mining companies. The Guatemalan victims claim that security guards employed by HudBay’s subsidiary at a Guatemalan mine shot and killed one man, shot and beat another and gang-raped 11 women. According to the story, HudBay has withdrawn its motion to stay the action on forum non conveniens grounds, which plaintiffs’ counsel describes as a “breakthrough”:

[Plaintiffs' counsel] Mr. Klippenstein is pursuing a $55-million claim in Ontario Superior Court over clashes in 2009 between local Mayan people opposing the mine and security and police allegedly acting on behalf of HudBay’s former local subsidiary. HudBay, which sold its interest in the mine in 2011, denies the allegations, saying they are “without merit.”

HudBay had been preparing to argue that the case should be heard in Guatemala, not Canada, on jurisdictional grounds – an argument that Mr. Klippenstein was expected to counter by pointing to well-documented problems with the small Latin American country’s justice system.

But Mr. Klippenstein claims the company abruptly changed its strategy after hearing depositions from his clients, who flew to Toronto from Guatelmala in December.

The Globe & Mail article adds:

“Contrary to Mr. Klippenstein’s statement, HudBay’s voluntary decision to have the cases heard in the Ontario Superior Court was based on its desire to avoid the complications of trying the cases in Guatemala, particularly in terms of time and travel,” HudBay John Vincic, HudBay’s vice-president of investor relations and corporate communications, said in an e-mail.

“Our decision does not create precedent or change the law in any way. Based on the cross-examinations referred to by Mr. Klippenstein, HudBay is increasingly confident the cases are without merit and will be favourably resolved on the merits in Ontario.”

Recently, Madam Justice Carol J. Brown granted Amnesty International intervenor status in Choc v. Hudbay Minerals Inc. et al., 2013 ONSC 998 (CanLII). Carol J. Brown, J.  concludes:

[12]           I am satisfied that Amnesty has discharged its onus to establish that its presence can assist the court in determining certain of the issues in the motions, and in bringing to the attention of the court considerations of an international nature regarding the issues in play in these cases. I am satisfied that it can bring a perspective different from that of the parties, particularly given its expertise in the areas of international human rights abuse, international and transnational business accountability, and as a result of its involvement in and consultation with the UN Special Representative on the Issue of Human Rights and Transnational Corporations. Given that Amnesty International will not be involved in any of the evidentiary or factual aspects of the cases, I do not find that intervention by Amnesty will cause undue disruption or delay in the motions. Given that Amnesty will only be involved in providing a different view with respect to the legal considerations to be had in determining the issues in the motions, there will be no opportunity for it to use these motions as a “political platform” as argued by the defendants. While the actions involve private disputes, namely actions involving individuals and an international Corporation, with operations in the plaintiffs’ home state, the issues involved have international, transnational and public policy overlays which make them appropriate for intervention by Amnesty, which, I find, can make a useful legal contribution.

[13]           Considering the issues raised in the pleadings, the nature of the three cases, and the nature of the interventions sought to be made by Amnesty, I grant leave to Amnesty to intervene. The intervention will be limited strictly to making submissions with respect to the issues of law, and particularly international law, standards and norms concerning the existence or scope of the duty of care.

The timing of the withdrawal of HudBay’s forum non conveniens motion is intriguing; but it may also have something to do with focusing arguments around ‘reverse veil piercing’ raised in Chevron/Lago Agrio enforcement proceedings in Ontario and elsewhere. Nevertheless, the defendants’ Rule 21 motion to dismiss the claims against them as disclosing no reasonable cause of action will proceed on March 4 and 5, 2013.

Stay tuned.

PCA Tribunal ‘Benchslaps’ Ecuador in Ongoing Chevron-Lago Agrio Dispute

February 8, 2013

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An interesting development in the Lago Agrio/Chevron litigation battle , which was the subject of my  Guest Post: Comments on the Lago Agrio Plaintiffs Enforcement Action in Canada at Ted Folkman’s Letters Blogatory.

Via the Juicio Crudo Blog (original in Spanish):

 An international arbitration court yesterday issued a ruling in which it concludes that the Republic of Ecuador has violated previous interim awards of the same court authorized under international law and a treaty between the United States and Ecuador to not attempt to prevent the execution of a sentence of 19,000 million against Chevron Corp. (NYSE: CVX). In previous decisions, the court warned that if the arbitration Chevron ended imposing “any loss arising from the implementation (of the judgment) would be losses for which (the Republic) would be responsible (with Chevron) under international law.”

Convened under the authority of the Bilateral Investment Treaty (BIT, according to its acronym in English) between the United States and Ecuador, and administered by the Permanent Court of Arbitration at The Hague, the tribunal found that Ecuador breached previous court rulings and ordered to explain why the Republic should not be ordered to pay compensation to Chevron for all damages resulting from attempts by plaintiffs to enforce a judgment arising out of an environmental lawsuit against the company in Lago Agrio, Ecuador. (more…)

Donald Earl Childress III, “Forum Conveniens: The Search for a Convenient Forum in Transnational Cases”

February 4, 2013

Donald Earl Childress III (Pepperdine University School of Law) has posted “Forum Conveniens: The Search for a Convenient Forum in Transnational Cases”, Virginia Journal of International Law, Vol. 53, No. 1, p. 157, 2012.  The abstract reads:

This Article examines the forum non conveniens doctrine as it is applied by federal courts and state courts in present-day transnational litigation. The Article also explores what happens when the doctrine is invoked in cases involving foreign sovereigns. The Article uncovers empirical evidence suggesting increased use of the forum non conveniens doctrine by courts. Unfortunately, this increased use does not come with clear standards for application. After considering the underlying rationales for the doctrine and whether they are effectuated by the current doctrine’s usage in transnational cases, the Article proposes a new series of rules and factors to be balanced by courts when asked to apply the doctrine.

 A PDF copy of the paper is available for download on SSRN here.

Laura E. Little, “Internet Defamation, Freedom of Expression, and the Lessons of Private International Law for the United States”

December 19, 2012

Laura E. Little (Temple University – James E. Beasley School of Law) has published “Internet Defamation, Freedom of Expression, and the Lessons of Private International Law for the United States”, European Yearbook of Private International Law, Vol. 14, 2012. The abstract reads:

This article reviews current developments in U.S. conflict of laws doctrine pertaining to transnational internet defamation cases, including personal jurisdiction, choice of law, and recognition of judgments. To resolve personal jurisdiction and choice of law issues in internet defamation cases, U.S. courts have adapted rules from the non-internet context with relative ease. Reported cases tend to concern domestic internet disputes between U.S. entities, with few plaintiffs attracted to U.S. courts for the purpose of litigating cross-border defamation claims. Although the U.S. serves as a magnet jurisdiction for many types of litigation, two liability-defeating laws render the country inhospitable to defamation claims: (1) the U.S. Constitution’s First Amendment speech protections and (2) a statute affording immunity to internet “providers or users” for information “provided by another content provider.” Perhaps because of these provisions litigants are largely inspired to go elsewhere. The resulting libel tourism has prompted important U.S. developments pertaining to enforcement and recognition of foreign defamation judgments. Thus, for conflict of laws matters pertaining to internet defamation, it is judgments law that reflects the greatest activity and most profound change.

After reviewing personal jurisdiction and choice of law trends, this article describes legal developments pertaining to internet defamation judgments. The article critiques lawmakers’ adherence to First Amendment exceptionalism in regulating internet defamation judgments and identifies flaws reflected in state libel tourism statutes and the federal libel tourism statute, the SPEECH act of 2010.

Download the article via SSRN here.

Laura E. Little on “Internet Choice of Law Governance”

June 11, 2012

Laura E. Little (Temple University – James E. Beasley School of Law) has posted  ”Internet Choice of Law Governance”, China Private International Law Forum, 2012/Temple University Legal Studies Research Paper Series No. 2012-20.  The abstract reads:

As society and legal institutions have become more accustomed to internet communications and transactions, some legal thinkers urge that existing approaches to governance developed outside the internet context are well suited for resolving internet choice of law issues. In this essay, Professor Little argues against this position, observing that internet disputes continue to pose unique choice of law problems and to call for special focus on developing appropriate governance rules. Professor Little finds evidence of this need for special focus in several phenomena, including: (1) the continuing tendency of courts to pursue unilateral decision-making despite multi-jurisdictional interests or global effects of internet disputes; and (2) the legal and cultural clashes that arise in disputes implicating freedom of expression. The internet plays a crucial role in developing new cultural and creative forms, such as fan fiction, mashups, scanlations, and various forms of humor. This raises the stakes of identifying appropriate regulatory forms for internet communication. Special study of internet choice of law problems has the potential to provide the United States with insight into other countries’ methods of crediting human dignity in regulating hate speech and defamation as well as to create greater understanding among nations.

Download a pdf copy of the paper via SSRN here.


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