Corporate Liability for Extraterritorial Torts Under the Alien Tort Statute and Beyond: An Economic Analysis

33 Pages Posted: 11 Jan 2012 Last revised: 15 May 2012

Alan O. Sykes

Stanford University - Law School

Date Written: January 11, 2012

Abstract

Litigation against corporate defendants under the Alien Tort Statute is largely an effort to enlist multinational business interests in a laudable effort to reign in the human rights abuses of repressive regimes. The hard question is whether the costs of this now extensive litigation (and related litigation under state tort law) are worth the benefits. This essay offers number of reasons for skepticism in that regard, although I stipulate that the ultimate answer to this question turns on empirical judgments. Courts considering the difficult issues that arise in these cases should at least be mindful of the possibility that corporate liability may impose great costs on firms subject to suit in the United States while accomplishing little or nothing to improve human rights. And if the door to corporate liability is to remain open, careful attention to the standards for aiding and abetting liability, to the requirements for vicarious liability, and to the measure of damages can both cabin and calibrate corporate liability in ways that enhance its potential to afford constructive incentives.

Suggested Citation

Sykes, Alan O., Corporate Liability for Extraterritorial Torts Under the Alien Tort Statute and Beyond: An Economic Analysis (January 11, 2012). Georgetown Law Journal, Forthcoming. Available at SSRN: https://ssrn.com/abstract=1983445 or http://dx.doi.org/10.2139/ssrn.1983445

Alan O'Neil Sykes (Contact Author)

Stanford University - Law School ( email )

559 Nathan Abbott Way
Stanford, CA 94305-8610
United States

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