Boomerang Litigation: How Convenient Is Forum Non Conveniens in Transnational Litigation
25 Pages Posted: 22 Aug 2015
Date Written: December 20, 2007
In Latin America, there is a trend toward holding transnational companies legally accountable for activities that cause damage in Latin America. Latin American courts have developed new causes of action, enforced blocking statutes, and rendered large money verdicts against U.S. companies. This means that an FNC dismissal in the U.S. will not necessarily signify the end of an action. As plaintiffs achieve victories in Latin American courts, more judgment enforcement cases are likely to find their way to U.S. courts. U.S. courts need to respond to these developments by closing the enforcement loophole between an FNC dismissal and the subsequent foreign money judgment enforcement action. Otherwise, significant judicial resources will be needlessly spent on boomerang litigation, and fundamental unfairness may result. Transnational litigation is not a mere passing fad; it is the future. Now is the time for the courts to engage in a more comprehensive analysis of the pitfalls of boomerang litigation with an eye to developing workable solutions.
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