Lovells

On 12th September the United States District Court for the Southern District of New York dismissed all claims against Talisman Energy arising from its former indirect interest in a Sudanese oil concession.   

The lawsuit alleged that Talisman Energy conspired with the Government of Sudan to commit, or aided and abetted the Government of Sudan's commission of, human rights violations in southern Sudan.  The Court concluded that there was insufficient evidence to support plaintiffs' allegations to allow the case to proceed to trial, which had been scheduled to commence in January 2007. 

The case was brought under the Alien Tort Statute (ATS), which provides a forum in U.S. federal courts for aliens alleging torts in violation of international law.  In recent years, a trend has emerged where plaintiffs invoke the ATS against multinational corporations, seeking to hold them responsible for human rights violations committed in nations where they operate. 

In dismissing plaintiffs' claims against Talisman Energy, the Court recognized that the activities that plaintiffs identified as assisting the Government of Sudan in committing alleged violations of international law generally accompany the creation of any industry, and that many countries, including the U.S., "have encouraged investment by domestic corporations in foreign countries that have abysmal human rights records based on the belief that economic development will bring with it political development, respect for the rule of law and the observance of human rights."   

This development is significant for international businesses concerned about risks of litigation in the U.S. and in particular those operating in areas where they may be subject to similar human rights claims.    A cross-border team from Lovells' New York, Chicago and London offices defended Talisman Energy.