Mastafa v. Chevron Corp.
2014 U.S. App. LEXIS 20559
| 2d Cir. | 2014Background
- Five Iraqi nationals sue Chevron and BNP (Oil-for-Food context) alleging they funded Saddam Hussein's regime through surcharges and kickbacks, enabling human rights abuses.
- District Court dismissed the TVPA and ATS claims in 2010 under Rule 12(b)(1)/(6); plaintiffs appealed.
- Supreme Court decisions Kiobel (extraterritoriality presumption) and Mohamad (TVPA liability limited to natural persons) became central during appellate briefing.
- Court adopts Kiobel’s extraterritoriality framework and Morrison-style focus on domestic conduct to displace the presumption.
- Complaint cites OFP administration in New York and U.S.-based Chevron/BNP activities as domestic touchpoints; district court found pleading deficiencies.
- Court ultimately affirms dismissal, holding TVPA cannot reach corporations and ATS jurisdiction is foreclosed by extraterritoriality principles and lack of purposeful aiding-and-abetting conduct.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether TVPA claims against corporations survive. | Mastafa argues TVPA liability extends to corporate defendants. | Chevron/BNP rely on Mohamad that TVPA covers natural persons only. | TVPA claims dismissed; Mohamad controls. |
| Whether ATS provides jurisdiction after Kiobel and Presbyterian Church. | Mastafa contends ATS claims valid due to US conduct touches and concerns. | Chevron/BNP argue Kiobel bars corporate ATS liability and extraterritoriality applies. | ATS jurisdiction rejected; extraterritorial presumption not displaced. |
| Whether the complaint adequately pleads a violation of the law of nations. | Plaintiffs assert war crimes/genocide/torture under ATS. | Defendants contend lack of adequately pleaded norm and mens rea. | Complaint pleads some customary international-law norms, but fails to plead purposeful aiding and abetting. |
| Whether plaintiffs adequately plead aiding-and-abetting liability under ATS. | Plaintiffs claim Chevron/BNP knowingly aided regime abuses. | Mens rea requires purpose to facilitate violations. | Aiding-and-abetting claims dismissed for lack of purposeful mens rea. |
| Whether domestic US conduct suffices to displace the extraterritoriality presumption. | Alleged US-based OFP administration and escrow activities touch US. | Domestic conduct insufficient to overcome presumption without cognizable NI norms. | Domestic conduct insufficient to displace presumption; no jurisdiction. |
Key Cases Cited
- Kiobel v. Royal Dutch Petroleum Co., 133 S. Ct. 1659 (2013) (presumption against extraterritoriality applies to ATS ()
- Mohamad v. Palestinian Authority, 132 S. Ct. 1702 (2012) (TVPA liability limited to natural persons; corporations not liable)
- Sosa v. Alvarez-M Machain, 542 U.S. 692 (2004) (ATS requires recognizable international-law norms; specificity and acceptance)
- Presbyterian Church of Sudan v. Talisman Energy, Inc., 582 F.3d 244 (2d Cir. 2009) (aiding/abetting liability under ATS; purpose standard guiding liability)
- Balintulo v. Daimler AG, 727 F.3d 174 (2d Cir. 2013) (focus on conduct location; Kiobel framework applied to TT analysis)