U.S. top court curbs human rights claims in Daimler ruling

[Judi Lynn]

U.S. top court curbs human rights claims in Daimler ruling
Tue Jan 14, 2014 4:09pm EST
By Lawrence Hurley

Jan 14 (Reuters) - The U.S. Supreme Court ruled on Tuesday that Daimler AG cannot be sued in California over alleged abuses in Argentina, a decision likely to erode further the reputation of the United States as a global venue for human rights claims.

The 9-0 decision was the second by the high court in less than a year to make it harder for plaintiffs to sue foreign-based multinational corporations in U.S. courts for alleged human rights violations. Lower courts already have thrown out similar lawsuits based on a 2013 Supreme Court decision.

In Tuesday's ruling, the justices said companies must do substantial business in the United States to be sued there. The fact that the German-based automaker owns a U.S.-based subsidiary that does business in California was not enough for the lawsuit to proceed, the court said.

Daimler faced allegations that a subsidiary violated the human rights of workers at a plant in Argentina in the 1970s.

The court ruled on a unanimous vote that the lawsuit could not go ahead. The justices said Daimler's connections with California, where the lawsuit was filed, were not sufficient for it to face a lawsuit there.

More:
http://www.reuters.com/article/2014/01/14/usa-court-rights-idUSL2N0KO0X320140114?rpc=401

[MADem]

1. Why aren't they suing in Germany, where the company is HQ'd?

They only have subsidiary interests here. I don't think this reflects on "human rights," as the defense lawyers greedily tried to claim, it reflects on STANDING and where the company is located. USA is not Germany, and New Jersey isn't California, either, for that matter.

Daimler is headquartered in Stuttgart, while its Mercedes-Benz USA LLC subsidiary is incorporated in Delaware and does most of its business in New Jersey.

Surely they'll get a nice big piece of the pie if they take their grievances straight to the EU....? Why aren't they doing that? Did they think they'd get a bigger payday in suit-happy America? I think I will believe Ruth Bader-Ginsberg before I believe a crew of whining lawyers looking for a large cut of the cake:

Human rightslawyers previously were eager to sue in U.S. courts because of what defense lawyers describe as pro-plaintiff litigation rules that made it easier for plaintiffs to negotiate favorable settlements.

Justice Ruth Bader Ginsburg wrote in Tuesday's majority opinion that neither Daimler nor Mercedes-Benz USA, also known as MBUSA, is incorporated in California.

Venue shopping that is THAT obvious just isn't going to fly--they shouldn't have wasted their time and effort. Now if they ever do get a settlement, the only ones getting rich are the lawyers:

The claims had "nothing to do with anything that occurred or had its principal impact in California," Ginsburg added.