Aziz v. Alcolac, Inc.
2011 U.S. App. LEXIS 19227
| 4th Cir. | 2011Background
- In late 1980s Iraq, under Saddam Hussein, used chemical warfare against Iran and Kurds; TDG sold by Alcolac to Iraq facilitated mustard gas production.
- Alcolac knew TDG could be used for chemical weapons and faced export restrictions warnings from U.S. authorities.
- Alcolac shipped large TDG orders to Colimex (Germany) and NuKraft Mercantile Corp. (Brooklyn), the latter linked to transshipment to Iraq.
- Kurdish victims and their families filed a class action under TVPA (Class A) and ATS (Class B).
- District court dismissed, holding TVPA excludes corporations and ATS aiding-and-abetting requires a purposeful intent; plaintiffs appealed.
- Appellants seek relief for acts tied to Iraq’s chemical attacks, alleging Alcolac’s aiding and abetting of international wrongdoing.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| TVPA applicability to corporations | Aziz argues TVPA liability extends to corporations | Alcolac contends TVPA covers individuals, not corporations | TVPA excludes corporations; claim dismissed |
| ATS aiding-and-abetting standard | ATS permits aiding-and-abetting liability | Aiding-and-abetting requires purposeful intent to facilitate violation | Aiding-and-abetting under ATS requires purpose to facilitate the violation |
| Mens rea source for ATS standard | Rome Statute or customary international law supports knowledge standard | 93 ICTY/ICTR precedents control | Rome Statute provides authoritative purposeful standard; knowledge alone insufficient |
| Pleading sufficiency for intent under ATS | Allegations show intent to facilitate chemical weapon use | Amended Complaint contains only conclusory assertion | Allegations fail to plead sufficient purposeful intent; ATS claims affirmed in dismissal |
Key Cases Cited
- Sosa v. Alvarez-Machain, 542 U.S. 692 (U.S. 2004) (limits ATS to universally accepted norms with definite content)
- Khulumani v. Barclay National Bank Ltd., 504 F.3d 254 (2d Cir. 2007) (debated aiding-and-abetting scope under ATS; concurring views cited)
- Bowoto v. Chevron Corp., 621 F.3d 1116 (9th Cir. 2010) (TVPA scope and corporate liability discussion cited)
- Mohamad v. Rajoub, 634 F.3d 604 (D.C. Cir. 2011) (TVPA corporate liabilityDiscussion in D.C. Circuit context)
- Talisman Energy, Inc. v. Presbyterian Church of Sudan, 582 F.3d 244 (2d Cir. 2009) (adopted knowledge vs. intent standard for ATS aiding-and-abetting)
- Doe VIII v. Exxon Mobil Corp., 654 F.3d 11 (D.C. Cir. 2011) (recognizes aiding-and-abetting liability under ATS; discusses sources of international law)
- Central Bank of Denver v. First Interstate Bank of Denver, 511 U.S. 164 (U.S. 1994) (limits aiding-and-abetting liability to explicit Congressional authorization)
- Clinton v. City of New York, 524 U.S. 417 (U.S. 1998) (distinguishes between 'individual' and 'person' in statutory text)
- The Paquete Habana, 175 U.S. 677 (U.S. 1900) (international law as part of U.S. law; sources of law considered)