Business Law Cases Solved

1901 Words Jan 17th, 2011 8 Pages
Chapter 1
Introduction to International and Comparative Law

Case 1-1. IGNACIO SEQUIHUA V. TEXACO INC. ET AL.

United States District Court for the Southern District of Texas, 1994.

FACTS: Plaintiffs, Ecuador residents, filed suit in Texas over alleged environmental damage in Ecuador. Plaintiffs pray for money damages, an injunction to clean up, and a court-administered trust fund. Defendants bring motions to dismiss.

ISSUE: Should the court decline to exercise jurisdiction based on the doctrine of comity of nations?

HOLDING: Yes.

LAW: Section 403(3) of the Restatement (Third) of the Foreign Relations Law of the United States sets out numerous factors in deciding whether comity of nations deference should be applied.

EXPLANATION:
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(2) The law under which a corporate entity is created establishes that entity’s nationality. (3) Precedent and the plain language of § 1332(a)(2) require that an alien bringing suit in a US federal court must be a citizen or national of a foreign state.

EXPLANATION: (1) Hong Kong is not recognized as a foreign state and the US State Department has told the court that the US executive does not regard it as a state. (2) Matimak was created as a company according to Hong Kong law. Even though this law is based on a UK law, that is not enough of a connection with the UK to say that Matimak is a UK company. (3) Precedent and the plain language of the § 1332(a)(2) exclude stateless persons from bringing suits in US federal courts.

ORDER: District court’s dismissal of the suit is affirmed.

Case 1-4. THE TRAIL SMELTER ARBITRATION

(United States v. Canada)

Canadian-United States International Joint Commission, Arbitral Tribunal, 1938 and 1941.

FACTS: A Canadian lead and zinc smelter at Trail, British Columbia, was polluting the waters of the Columbia River that then ran into the state of Washington. After negotiations between the US and Canada, the latter agreed to refer the matter to an International Joint Commission. The Commission’s Arbitral Tribunal awarded the US $350,000 in damages, but did not order the smelter to cease operating. In 1941, the US sought to have the operation of the smelter

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