Amicus Curiae Brief — Midwest Air Traffic Control Service, Inc., Petitioner v. Jessica T. Badilla, et al.
Supreme Court briefJan 10, 2022
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No. 21-867
In The
MIDWEST AIR TRAFFIC CONTROL SERVICE, INC.,
Petitioner,
v.
JESSICA T. BADILLA, ET AL.
ON PETITION FOR A WRIT OF CERTIORARI
TO THE UNITED STATES COURT OF APPEALS
FOR THE SECOND CIRCUIT
MOTION FOR LEAVE TO FILE BRIEF OF
AMICUS CURIAE THE CHAMBER OF
COMMERCE OF THE UNITED STATES OF
AMERICA, AND BRIEF OF AMICUS CURIAE IN
SUPPORT OF PETITIONER
Stephanie A. Maloney
Tyler S. Badgley
U.S. CHAMBER LITIGATION
CENTER
1615 H Street, NW
Washington, D.C. 20062
(202) 463-5337
Pratik A. Shah
Counsel of Record
AKIN GUMP STRAUSS
HAUER & FELD LLP
2001 K Street, NW
Washington, D.C. 20006
(202) 887-4000
pshah@akingump.com
Aileen M. McGrath
AKIN GUMP STRAUSS
HAUER & FELD LLP
580 California Street,
Suite 1500
San Francisco, CA 94104
Counsel for Amicus Curiae
i
MOTION FOR LEAVE TO FILE BRIEF OF
AMICUS CURIAE THE CHAMBER OF
COMMERCE OF THE UNITED STATES OF
AMERICA
This case presents an issue of considerable
importance, resolution of which will impact the publicprivate partnerships that support our Nation’s
military, diplomatic, humanitarian, and peacemaking
efforts abroad. The Chamber of Commerce of the
United States of America (“Chamber”) is particularly
well-suited to provide additional insight into the broad
implications of the decision below for businesses
participating in these important partnerships.
The Chamber timely notified counsel of record for
both parties that it intended to submit the attached
brief more than 10 days prior to filing. Counsel for
petitioner consented to the filing of this brief. Counsel
for respondent declined to consent to this filing
(without explanation).
Therefore, pursuant to
Supreme Court Rule 37.2, the Chamber respectfully
moves this Court for leave to file the accompanying
brief of amicus curiae in support of petitioner. No
counsel for any party authored this accompanying
brief in whole or in part and no entity or person, aside
from amicus curiae, its members, or its counsel, made
any monetary contribution intended to fund the
preparation or submission of the brief.
As the world’s largest business federation, the
Chamber is well-positioned to address the thorny
problems that arise when domestic state tort law is
applied to American businesses operating overseas,
including businesses working as contractors for the
ii
federal government. Those problems have multiplied
in recent years as courts have, to varying degrees,
allowed state-law challenges against contractors
operating overseas—including those supporting the
Armed Forces—to proceed in federal court. Applying
state tort law to overseas conduct imposes various
uncertainties and attendant costs on businesses
operating overseas, and thus diminishes the pool of
businesses willing to contract with the federal
government abroad. Ultimately the burden will fall on
American taxpayers (who will absorb the resulting
costs) and the developing world more generally (which
will be deprived of the benefits public-private
partnerships provide). The decision below—and the
others applying state tort law to claims against federal
contractors—exacerbates this dangerous trend by
making it more difficult for businesses operating
overseas to assess their risks from state-law tort suits.
The Chamber offers its understanding of the vast
scope of public-private partnerships involving the
federal government and business interests abroad, as
well as the nature and extent of the costs imposed
when state tort law is applied to this overseas conduct,
to help explain why the question presented here
warrants this Court’s review. See Pet. 22-26. Because
the proposed brief will aid this Court’s consideration
of the petition, the Chamber respectfully requests that
the Court grant leave to file the attached brief urging
the Court to grant the petition.
iii
Respectfully submitted.
Stephanie A. Maloney
Tyler S. Badgley
U.S. CHAMBER LITIGATION
CENTER
Pratik A. Shah
Counsel of Record
Aileen M. McGrath
AKIN GUMP STRAUSS
HAUER & FELD LLP
iv
TABLE OF CONTENTS
INTEREST OF AMICUS CURIAE............................. 1
INTRODUCTION
AND
SUMMARY
OF
ARGUMENT .......................................................... 2
ARGUMENT ................................................................ 5
I. THE FEDERAL GOVERNMENT RELIES
HEAVILY ON AMERICAN CONTRACTORS
AND BUSINESSES TO ADVANCE ITS
INTERESTS OVERSEAS. ..................................... 5
A. Military Combat Support ................................. 5
B. Fragile Nation Support And Post-Conflict
Reconstruction .................................................. 7
C. Development And Disaster Relief .................... 9
D. Diplomatic Security ........................................ 11
E. Intelligence Gathering, Counterterrorism
Training, And Narcotics Eradication ............. 12
II. EXTRATERRITORIAL APPLICATION OF
STATE TORT LAW IMPOSES SERIOUS
COSTS ON U.S. BUSINESSES AND
GOVERNMENT INTERESTS. ............................ 13
A. The Second Circuit’s Decision Further
Opens The Door To State Tort Suits Against
Government
Contractors
Operating
Overseas. ......................................................... 14
B. State Tort Liability Creates Enormous
Uncertainty For American Businesses
Operating Overseas. ....................................... 16
C. State Tort Liability Will Deter Some
American Contractors And Lead Others To
Demand Higher Fees. ..................................... 21
v
D. State Tort Liability Undermines Vital
Government Operations And Impinges On
Foreign Policy. ................................................ 24
CONCLUSION .......................................................... 26
vi
TABLE OF AUTHORITIES
CASES:
Abdullahi v. Pfizer, Inc.,
562 F.3d 163 (2d Cir. 2009)............................... 15
Al Shimari v. CACI Int’l, Inc.,
679 F.3d 205 (4th Cir. 2012) ..................... passim
American Ins. Ass’n v. Garamendi,
539 U.S. 396 (2003) ........................................... 26
Atlantic Marine Constr. Co. v. U.S. Dist.
Court for W. Dist. of Tex.,
571 U.S. 49 (2013) ............................................. 18
Bixby v. KBR, Inc.,
603 F. App’x 605 (9th Cir. 2015) ....................... 20
Boyle v. United Technologies Corp.,
487 U.S. 500 (1988) ........................................... 23
Cloyd v. KBR, Inc.,
536 F. Supp. 3d 113 (S.D. Tex. 2021) ........... 15, 9
--- F. Supp. 3d ---, 2021 WL 5494685
(S.D. Tex. 2021) ................................................. 19
Crosby v. National Foreign Trade Council,
530 U.S. 363 (2000) ........................................... 26
Doe v. Exxon Mobil Corp.,
654 F.3d 11 (D.C. Cir. 2011) ............................. 15
vii
Filarsky v. Delia,
566 U.S. 377 (2012) ............................... 21, 22, 24
Harlow v. Fitzgerald,
457 U.S. 800 (1982) ........................................... 25
Harris v. Kellogg Brown & Root Servs., Inc.,
878 F. Supp. 2d 543 (W.D. Pa. 2012) ................ 25
724 F.3d 458 (3d Cir. 2013)......................... 18, 25
151 F. Supp. 3d 600 (W.D. Pa. 2015) ................ 18
Hencely v. Fluor Corp.,
--- F. Supp. 3d ---, 2021 WL 3568397
(D.S.C. 2021)...................................................... 15
In re KBR Inc., Burn Pit Litig.,
268 F. Supp. 3d 778 (D. Md. 2017) ............. 19, 25
893 F.3d 241 (4th Cir. 2018) ............................. 20
Kiobel v. Royal Dutch Petroleum Co.,
569 U.S. 108 (2013) ........................................... 14
Loquasto v. Fluor Corp.,
512 F. Supp. 3d 728 (N.D. Tex. 2021)............... 16
Nestlé USA, Inc. v. Doe,
141 S. Ct. 1931 (2021) ................................. 14, 24
Norat v. Fluor Intercontinental, Inc.,
No. 6:16-cv-00603-BHH, 2018 WL
1382666 (D.S.C. Mar. 19, 2018) ........................ 16
viii
Presbyterian Church of Sudan v. Talisman
Energy, Inc.,
582 F.3d 244 (2d Cir. 2009)............................... 21
562 U.S. 946 (2010) ........................................... 21
Saleh v. Titan Corp.,
580 F.3d 1 (D.C. Cir. 2009) ................... 22, 23, 24
Stencel Aero Eng’g Corp. v. United States,
431 U.S. 666 (1977) ........................................... 25
Zschernig v. Miller,
389 U.S. 429 (1968) ........................................... 26
CONSTITUTION:
U.S. CONST.
art. I, § 8, cls. 1, 11-15 ....................................... 25
art. I, § 10 ........................................................ 25
art. II, § 2, cls. 1-2 ............................................. 25
Other Authorities:
Chandrasekaran, Rajiv & Scott Higham,
Access to Afghan Projects to Be Lost,
Wash. Post, Oct. 27, 2013 ................................... 9
Counternarcotics Contracts in Latin
America: Hearing Before the Ad Hoc
Subcomm. On Contracting Oversight of
the S. Comm. on Homeland Security and
Governmental Affairs, 111th Cong.
(2010) ................................................................. 13
ix
Crawford, Jamie, For Contractors Who Stay,
It “Is Not Going To Be Easy”; Thousands
Left in Iraq Will Navigate Complex
Scenario, Chi. Trib., Oct. 23, 2011...................... 9
Detsch, Jack, Report: Departure of Private
Contractors Was a Turning Point in
Afghan Military’s Collapse, Foreign
Policy (Aug. 16, 2021)........................................ 19
Florey, Katherine, State Courts, State
Territory, State Power: Reflections on the
Extraterritoriality Principle in Choice of
Law and Legislation, 84 Notre Dame L.
Rev. 1057 (2009) .......................................... 17, 20
Florey, Katherine, State Law, U.S. Power,
Foreign Disputes: Understanding the
Extraterritorial Effects of State Law in
the Wake of Morrison v. National
Australia Bank, 92 B.U. L. Rev. 535
(2012) ................................................................. 15
Goldsmith, Jack L. & Alan O. Sykes, Lex
Loci Delictus and Global Economic
Welfare: Spinozzi v. ITT Sheraton Corp.,
120 Harv. L. Rev. 1137 (2007) .......................... 20
Gordon, Michael R., Civilians to Take U.S.
Lead After Military Leaves Iraq, N.Y.
Times, Aug. 19, 2010 ........................................... 9
x
Kendall, Brent, Contractor’s Torture
Settlement a Milestone; Payment of $5.28
Million to Resolve Abuse Claims at Abu
Ghraib in Iraq Underscores Legal Risks
for Firms in War Zones, Wall St. J., Jan.
10, 2013.............................................................. 17
Kobrin, Stephen J., Oil and Politics:
Talisman Energy and Sudan, 36 N.Y.U.
J. Int’l L. & Pol. 425 (2004) ............................... 21
Learning from Iraq: A Final Report from the
Special Inspector General for Iraq
Reconstruction: Hearing Before the
Subcomm. On the Middle East and
North Africa of the H. Foreign Affairs
Comm., 113th Cong. (2013) .............................. 10
Meyer, Jeffrey A., Extraterritorial Common
Law: Does the Common Law Apply
Abroad? 102 Geo. L.J. 301 (2014) ..................... 15
Morgenstern, Emily M., Cong. Rsch. Serv.
IF10261, U.S. Agency for International
Development: An Overview (Aug. 14,
2020) .................................................................. 10
OPIC, Annual Report on Development
Impact (Oct. 2018) ............................................ 11
Peters, Heidi M., Cong. Rsch. Serv. IF10600,
Defense Primer: Department of Defense
Contractors (Feb. 3, 2021) ................................... 6
xi
Quinn, Andrew, Security Contractors Filling
Big Void; State Department Doubling the
Ranks to Protect Civilians, Chi. Trib.,
Aug. 22, 2010 ....................................................... 9
Schwartz, Moshe & Jennifer Church, Cong.
Rsch. Serv. R43074, Department of
Defense’s Use of Contractors to Support
Military Operations: Background,
Analysis, and Issues for Congress (2013) ....... 6, 7
Sheridan, Mary Beth & Dan Zak, In Iraq,
It’s Crunch Time for the State
Department, Wash. Post, Oct. 9, 2011 ................ 9
Sykes, Alan O., Corporate Liability for
Extraterritorial Torts Under the Alien
Tort Statute and Beyond: An Economic
Analysis, 100 Geo. L.J. 2161 (2012) ........... 19, 23
Tarnoff, Curt, Cong. Rsch. Serv. R44117,
U.S. Agency for International
Development (USAID): Background,
Operations, and Issues (2015) ........................... 10
Tiersky, Alex & Susan B. Epstein, Cong.
Rsch. Serv. R42834, Securing U.S.
Diplomatic Facilities and Personnel
Abroad: Background and Policy Issues
(2014) ................................................................. 12
xii
U.S. Dep’t of Commerce, The U.S. Litigation
Environment and Foreign Direct
Investment, Supporting U.S.
Competitiveness by Reducing Legal Costs
and Uncertainty (2008) ..................................... 22
U.S. Dep’t of Defense, Contractor Support of
U.S. Operations in the USCENTCOM
Area of Responsibility (Apr. 2021) ...................... 8
U.S. Dep’t of Defense, Quadrennial Defense
Review Report (Feb. 6, 2006) .............................. 7
U.S. Dep’t of State, United States Strategy to
Prevent Conflict and Promote Stability
(2020) ............................................................... 7, 8
U.S. Gov’t Accountability Off., GAO-03-946,
Foreign Assistance: Strategic Workforce
Planning Can Help USAID Address
Current and Future Challenges (2003) .............. 9
USAID, Private-Sector Engagement Policy ........... 11
USAID’s COVID-19 Response ................................ 10
Whitlock, Craig, Contractors Run U.S.
Spying Missions in Africa, Wash. Post,
June 14, 2012 .................................................... 12
Whitlock, Craig, U.S. Trains African
Soldiers for Somali Mission, Wash. Post,
May 13, 2012 ..................................................... 12
INTEREST OF AMICUS CURIAE1
The Chamber of Commerce of the United States
of America (“Chamber”) respectfully submits this brief
as amicus curiae in support of the petition.
The Chamber is the world’s largest business
federation.
It represents approximately 300,000
direct members and indirectly represents the interests
of more than three million companies and professional
organizations of every size, in every industry sector,
and from every region of the country. An important
function of the Chamber is to represent its members’
interests in matters before Congress, the Executive
Branch, and the courts, including this Court. To that
end, the Chamber regularly files amicus curiae briefs
in cases that raise issues of concern to the nation’s
business community, such as the foreign application of
domestic law. See, e.g., Nestlé USA, Inc. v. Doe, No.
19-416; Kellogg Brown & Root Servs., Inc. v. Harris,
No. 13-817; Kiobel v. Royal Dutch Petroleum Co., No.
10-1491.
The Chamber has a direct and substantial
interest in the issues presented in this case and in the
appropriate application of state tort law to overseas
business conduct more broadly. The accident in this
case was profoundly tragic, and the Chamber takes no
position on the factual issues. The Chamber addresses
only whether it is appropriate for courts to apply
1 Pursuant to Supreme Court Rule 37.6, amicus curiae
states that no counsel for any party authored this brief in whole
or in part and no entity or person, aside from amicus curiae, its
members, or its counsel, made any monetary contribution
intended to fund the preparation or submission of this brief.
(1)
2
domestic state tort law to the operations of federal
contractors working outside the United States.
Applying state tort law to overseas operations poses
thorny problems in the military context and other
circumstances where important federal interests are
also implicated.
The issue has become increasingly important in
recent years, as courts have allowed state-law
challenges against contractors operating overseas to
proceed in federal court notwithstanding the Federal
Tort Claims Act’s (“FTCA”) combatant-activities
exception. The Second Circuit’s ruling here is part of
this pernicious trend, which will continue unabated
absent this Court’s intervention. Claims in these
cases invariably implicate issues of U.S. military and
foreign policy in conflict, post-conflict, and
development areas throughout the world. This brief
describes the vast scope of public-private partnerships
involving the federal government and business
interests abroad, as well as the threats those
relationships face from the overseas application of
state tort law.
INTRODUCTION AND SUMMARY OF
ARGUMENT
The federal government has long relied heavily
on private contractors to carry out military and
civilian operations overseas. For instance, contractors
have provided critical support to the Armed Forces for
construction, transport, and other tasks historically
assigned to service members. Contractors also have
played a key role in efforts such as post-war
reconstruction, economic development, disaster relief,
3
diplomatic security, intelligence operations, and
counterterrorism initiatives.
Plaintiffs wishing to sue American companies
operating overseas have turned increasingly to statelaw claims in the wake of this Court’s decisions
limiting the application of federal law to overseas
conduct. Although plaintiffs have long paired Alien
Tort Statute (“ATS”) claims together with state-law
claims, the Court has curtailed the application of the
ATS to injuries occurring overseas. At the same time,
federal courts of appeals have opened the courthouse
door to state-law claims against federal government
contractors operating overseas by distorting the
preemption standard under the FTCA’s combatantactivities exception. Each circuit to address the issue
has articulated a different test for analyzing FTCA
preemption in this context.
See Pet. 14-19.
Nevertheless, each standard is “both imprecise and too
narrow,” id. at 20 (quoting U.S. Br. 14, Kellogg Brown
& Root Servs., Inc. v. Harris, No. 13-817), and has
improperly allowed many suits challenging overseas
activity to go forward, see Pet. 15, 17-18.
The Second Circuit’s decision below opens that
door even further, and imprudently encourages the
pursuit of state-law tort claims for the overseas
conduct of federal contractors. Those claims have
proliferated in recent years, as the disarray in the
circuits has persisted without this Court’s
intervention.
The result poses a significant threat to the federal
government’s critical ability to partner with private
contractors. Federal courts are saddled with the
4
burden of deciding which of fifty different state-law
regimes governs in a given case and then applying that
law to overseas conduct. That choice-of-law issue
creates enormous uncertainty for American
businesses seeking to bid on overseas contracts
because they cannot intelligently assess the nature or
extent of potential liability. And the scope of that
liability, and any related discovery, can be substantial.
The specter of massive liability and sensitive discovery
(often concerning events occurring in remote areas
overseas) places enormous settlement pressure on
these contractors.
That pressure and uncertainty inevitably will
continue to raise the cost of contracting with the
federal government abroad and likely deter many
businesses (particularly smaller companies) from
entering into such contracts at all. As a result, the
federal government faces a reduced pool of candidates
and higher rates to cover any remaining contractors’
increased insurance premiums and potential liability
costs.
In addition to limiting American business
opportunities and ultimately costing American
taxpayers, application of state law to overseas conduct
risks undue and unwarranted interference with
critical government projects and impingement on the
Nation’s foreign affairs prerogatives. Plaintiffs can be
expected to file state tort lawsuits against not only
businesses partnering with the U.S. military, but also
companies
working
to
promote
diplomatic,
humanitarian,
peacemaking,
and
economic
development opportunities overseas. Such lawsuits
risk frustrating the federal government’s interest in
5
providing aid and support abroad, particularly to
developing nations.
Federal contractors and businesses operating
abroad further the Nation’s interests in the world’s
most fragile and high-risk regions. Those interests are
at their apex when (as in this case) those companies
partner with the federal government in armed conflict,
peacemaking, and diplomatic efforts. State tort law is
an ill fit for disputes that arise in those circumstances.
These concerns demand the Court’s prompt attention.
ARGUMENT
I.
THE FEDERAL GOVERNMENT RELIES
HEAVILY ON AMERICAN CONTRACTORS
AND BUSINESSES TO ADVANCE ITS
INTERESTS OVERSEAS.
To appreciate the breadth and magnitude of the
consequences flowing from application of state tort law
to overseas conduct, it is helpful first to survey the
many challenging contexts in which American
contractors and businesses partner to further
American
governmental
interests.
Those
partnerships arise in a number of critical areas,
ranging from battlefield combat support and
diplomatic security to peacemaking, post-conflict
reconstruction, and economic development efforts.
A.
Military Combat Support
Throughout its history, the U.S. Department of
Defense (“DOD”) has depended on civilian contractors
to support overseas military operations. That reliance
increased sharply in the wake of the Cold War, as the
cessation of the draft combined with defense budget
6
cuts resulted in a substantial reduction in the size of
the U.S. Armed Forces, leading the U.S. military to
turn to private contractors. The result has been that
contractors now perform many combat duties
previously assigned to service members, including
constructing and maintaining facilities, transporting
supplies and personnel, providing life support to
service members on the battlefield, and executing
numerous other tasks in active war zones. Using
contractors provides DOD with many benefits,
including: “freeing up uniformed personnel to focus on
military-specific activities; providing supplemental
expertise in specialized fields, such as linguistics or
weapon systems maintenance; and providing surge
capabilit[ies] to quickly deliver critical support
functions.”2
The recent conflicts in Afghanistan and Iraq, and
the global war on terror, illustrate the central role that
contractors have long played in supporting U.S. troops
in areas of armed conflict. Contractors made up 50
percent or more of the total DOD presence in
Afghanistan and Iraq.3 For instance, reports showed
that over 100,000 DOD contractor personnel (in
addition to over 65,000 U.S. troops) were present in
2 See Heidi M. Peters, Cong. Rsch. Serv. IF10600, Defense
Primer: Department of Defense Contractors 1 (Feb. 3, 2021)
(“Defense Primer”); Moshe Schwartz & Jennifer Church, Cong.
Rsch. Serv. R43074, Department of Defense’s Use of Contractors
to Support Military Operations: Background, Analysis, and Issues
for Congress 1 (2013) (“DOD’s Use of Contractors to Support
Military Operations”).
3 Defense Primer, supra note 2 at 1.
7
Afghanistan as of March 2013, and DOD expended
over $160 billion for contractual services performed in
Iraq and Afghanistan between 2007 and 2012.4
There is no reason to expect DOD’s use of
contractors to abate in future armed conflicts. Defense
officials and analysts believe that the U.S. military
cannot function effectively on the battlefield without
support from private contractors. 5
DOD has
recognized that private contractors are functionally
integrated into—and an essential component of—the
total military force.6
B.
Fragile Nation Support
Conflict Reconstruction
And
Post-
Active military operations are only one
component of our Nation’s foreign policy mission. As
part of its efforts to promote freedom and democracy
around the globe, the federal government works to
“strengthen fragile states where state weakness or
failure would magnify threats to the American
homeland and empower reform-minded governments,
people, and civil society.” 7 Over the past several
decades, the United States has helped partner
countries—including those recovering from or at risk
of conflict—to become more self-reliant and
4 DOD’s Use of Contractors to Support Military Operations,
supra note 2 at 1-2.
5 Id.
6 See U.S. Dep’t of Defense, Quadrennial Defense Review
Report 75 (Feb. 6, 2006).
7 U.S. Dep’t of State, United States Strategy to Prevent
Conflict and Promote Stability 1, 4, 7, 14 (2020).
8
democratic.
U.S. Department of State (“State
Department”) personnel step in to help such countries
“build durable mechanisms to resolve conflicts,
undertake difficult reforms where needed, enhance
social cohesion, build critical institutions, *** and
mobilize domestic resources that can enable lasting
peace, stability, and ultimately prosperity.” 8 To
achieve those objectives, the State Department relies
heavily on civilian contractors and other forms of
public-private partnerships.9
The post-conflict reconstruction efforts in
Afghanistan and Iraq illustrate how these
partnerships operate in practice. Even as active
combat operations diminished, military contractors
continued to play a significant role focusing on
reconstruction and rebuilding in those regions. As
recently as the second quarter of FY2021, over 21,000
contractor personnel remained in Afghanistan, Iraq,
and Syria, performing a range of functions including
security,
IT
and
communications
support,
construction, social services, and medical care.10 The
State Department has overseen tens of thousands of
private contractors performing billions of dollars of
work—including
constructing
and
restoring
infrastructure, developing new justice systems, and
8 Id. at 7 (internal quotation marks omitted).
9 Id. at 14.
U.S. Dep’t of Defense, Contractor Support of U.S.
Operations in the USCENTCOM Area of Responsibility 1 (Apr.
2021).
10
9
protecting U.S. diplomatic officials.11 As many as 80
percent of State Department personnel performing
these on-the-ground functions in Afghanistan and Iraq
have been private contractors.12
C.
Development And Disaster Relief
“Humanitarian and economic development
assistance is an integral part of U.S. global security
strategy.” 13 The U.S. Agency for International
Development (“USAID”), which operates under the
authority of the State Department, “is the lead U.S.
Agency for administering humanitarian and economic
assistance to about 160 countries.” 14 USAID is
responsible for billions of dollars of relief and
reconstruction efforts in response to natural and manmade disasters. For instance, USAID has been a
leader in the global fight against the COVID-19
pandemic, and has directed more than $9 billion in
11 See generally Michael R. Gordon, Civilians to Take U.S.
Lead After Military Leaves Iraq, N.Y. Times, Aug. 19, 2010, at A1;
Jamie Crawford, For Contractors Who Stay, It “Is Not Going To
Be Easy”; Thousands Left in Iraq Will Navigate Complex
Scenario, Chi. Trib., Oct. 23, 2011, at 27; Andrew Quinn, Security
Contractors Filling Big Void; State Department Doubling the
Ranks to Protect Civilians, Chi. Trib., Aug. 22, 2010, at 23; Rajiv
Chandrasekaran & Scott Higham, Access to Afghan Projects to Be
Lost, Wash. Post, Oct. 27, 2013, at A01.
12 Mary Beth Sheridan & Dan Zak, In Iraq, It’s Crunch
Time for the State Department, Wash. Post, Oct. 9, 2011, at A12.
13 U.S. Gov’t Accountability Off., GAO-03-946, Foreign
Assistance: Strategic Workforce Planning Can Help USAID
Address Current and Future Challenges 1 (2003).
14 Id. at 4; see also id. at 2-3, 6-11, 21.
10
pandemic-related assistance to
countries.15
more
than 120
Since its inception in 1962, USAID’s direct-hire
staff has decreased dramatically while the number of
countries with USAID programs has more than
doubled.16 As a result, USAID increasingly has had to
rely on private contractors, who perform about 80
percent of USAID’s overseas projects.17
USAID partners not only with federal contractors
but also with other private companies to implement
the agency’s mission overseas. USAID proactively
solicits private-sector involvement in its disaster relief
and development efforts through a program called the
Global Development Alliance. Through that program,
USAID has engaged in over 2,300 private sector
alliances, leveraging more than $43 billion in public
and private funds to support countries in achieving
USAID’s COVID-19 Response, https://www.usaid.gov/
coronavirus (last visited Jan. 6, 2022).
16 See Curt Tarnoff, Cong. Rsch. Serv. R44117, U.S. Agency
for
International
Development
(USAID):
Background,
Operations, and Issues 1, 7 (2015); see also Emily M.
Morgenstern, Cong. Rsch. Serv. IF10261, U.S. Agency for
International Development: An Overview 2 (Aug. 14, 2020).
17 See Learning from Iraq: A Final Report from the Special
Inspector General for Iraq Reconstruction: Hearing Before the
Subcomm. On the Middle East and North Africa of the H. Foreign
Affairs Comm., 113th Cong. 25-26, 43 (2013).
15
11
“sustained
outcomes.”18
development
and
humanitarian
In much the same way, the Overseas Private
Investment Corporation (“OPIC”), the federal
government’s international development finance
institution, offers loans and other forms of financial
assistance to private U.S. companies to encourage
them to engage in development efforts abroad (e.g.,
helping Ukraine construct a nuclear storage facility,
or supporting financial institutions in India and Costa
Rica to improve women’s access to capital). 19
Operating under the policy guidance of the Secretary
of State, OPIC administers a portfolio that exceeds $10
billion, with projects in dozens of developing and postconflict nations.20
D.
Diplomatic Security
The United States maintains approximately 285
diplomatic facilities, including embassies and
consulates, in both friendly and high-threat
environments worldwide. The State Department
Bureau for Diplomatic Security (“Diplomatic Security
Bureau”) has primary responsibility for safeguarding
those facilities and the American diplomatic personnel
18 USAID, Private-Sector Engagement Policy 5, available at
https://www.usaid.gov/sites/default/files/documents/1865/usaid_
psepolicy_final.pdf (last updated Mar. 16, 2021).
19 OPIC, Annual Report on Development Impact 13, 15
(Oct. 2018).
20 Id. at 11.
12
deployed there (along with their accompanying family
members).21
The Diplomatic Security Bureau’s workload has
continued to expand, in part due to the increasing
frequency of attacks on overseas posts.22 Although the
Bureau has doubled the size of its direct-hire
workforce, it still requires substantial contractor
support
to
meet
its
diplomatic
security
responsibilities. Approximately 90 percent of the
Bureau’s 34,000 employees are private contractors.23
E.
Intelligence Gathering,
Counterterrorism Training, And
Narcotics Eradication
Private contractors assist the United States in
pursuing its interests abroad in additional ways. In
Africa, for example, the U.S. military has outsourced
air reconnaissance operations to contractors. In past
missions, these contractors have supplied aircraft and
surveillance gear, as well as pilots and personnel, to
obtain electronic intelligence concerning terrorist
organizations.
Contractors have also trained
Ugandan recruits to fight terrorists in Somalia, and
have engaged in counternarcotics operations in South
America.24
21 See Alex Tiersky & Susan B. Epstein, Cong. Rsch. Serv.
R42834, Securing U.S. Diplomatic Facilities and Personnel
Abroad: Background and Policy Issues 1, 3-4, 7 (2014).
22 See id. at 1, 6, 13-15.
23 Id. at 4-5.
24 See Craig Whitlock, Contractors Run U.S. Spying
Missions in Africa, Wash. Post, June 14, 2012; Craig Whitlock,
13
*****
In short, American contractors and businesses
further U.S. national security interests, including
military, reconstruction, development, diplomacy, and
other foreign policy efforts, in broad and significant
ways. Private contractors have given the federal
government extraordinary flexibility, and have been
instrumental in bridging the gap between our Nation’s
expanding global efforts and the capacities of the
Armed Forces and federal civilian workforce.
II.
EXTRATERRITORIAL APPLICATION OF
STATE TORT LAW IMPOSES SERIOUS
COSTS ON U.S. BUSINESSES AND
GOVERNMENT INTERESTS.
The Second Circuit’s decision contributes to the
disarray and uncertainty regarding whether, when,
and where plaintiffs may bring state tort claims
against American businesses operating overseas. Pet.
19-21. Under the various imprecise and fact-intensive
standards the courts of appeals have adopted, these
businesses cannot predict what state law will apply to
their overseas conduct, whether and where they will
be subjected to burdensome discovery, and if they will
ultimately face significant monetary judgments. This
uncertainty makes it more difficult for important
public-private partnerships to form, and ultimately
American taxpayers bear the brunt of the resulting
U.S. Trains African Soldiers for Somali Mission, Wash. Post,
May 13, 2012, at A01; Counternarcotics Contracts in Latin
America: Hearing Before the Ad Hoc Subcomm. On Contracting
Oversight of the S. Comm. on Homeland Security and
Governmental Affairs, 111th Cong. 9, 64, 95-96, 99 (2010).
14
costs. Absent this Court’s intervention, the threat of
state-tort lawsuits against federal contractors—a real
threat, as the number of recent cases illustrates—will
continue to impair the Nation’s military, security, and
foreign policy interests.
A.
The Second Circuit’s Decision Further
Opens The Door To State Tort Suits
Against
Government
Contractors
Operating Overseas.
By deepening the circuit conflict regarding the
scope of FTCA preemption and further muddling the
applicable standard (Pet. 14-19), the Second Circuit’s
decision will open the door to a greater number of
state-law tort suits against American businesses
operating overseas.
State-law suits are increasingly attractive
vehicles for plaintiffs interested in suing American
businesses for their overseas conduct. This Court has
recently, and repeatedly, held that federal laws (like
the ATS) ordinarily do not apply in cases involving
overseas conduct. See Kiobel v. Royal Dutch Petroleum
Co., 569 U.S. 108, 124 (2013). Just last Term, the
Court confirmed that the ATS does not apply even
when overseas activity is connected to domestic
“operational decisions.” Nestlé USA, Inc. v. Doe, 141
S. Ct. 1931, 1937 (2021).
But as this Court has held such federal-law suits
targeting overseas conduct barred, the Second Circuit
(and other courts) have gradually expanded plaintiffs’
ability to bring state-law claims against American
businesses, including those operating abroad, despite
the preemptive language of the FTCA. Pet. 14-17.
15
Commentators predicted that plaintiffs would turn to
“state-court suits with foreign elements” to challenge
overseas activity. Katherine Florey, State Law, U.S.
Power, Foreign Disputes:
Understanding the
Extraterritorial Effects of State Law in the Wake of
Morrison v. National Australia Bank, 92 B.U. L. Rev.
535, 549, 550 (2012) (observing that plaintiffs are
likely to find state common-law actions more
“worthwhile” in light of federal extraterritoriality
restrictions and predicting an “unprecedented
number” of such suits); see Jeffrey A. Meyer,
Extraterritorial Common Law: Does the Common Law
Apply Abroad? 102 Geo. L.J. 301, 305-306 (2014)
(“[w]ith U.S. courts now presumptively barred from
applying *** federal tort statutes *** to conduct in
foreign countries, the focus in transnational tort cases
will soon turn to state common law tort claims”)
(footnote omitted).
Those predictions have come true. Pet. 14-19.
For over a decade, plaintiffs have alleged state-law
claims alongside federal-law claims for the same
conduct. See, e.g., Doe v. Exxon Mobil Corp., 654 F.3d
11, 15 (D.C. Cir. 2011); Abdullahi v. Pfizer, Inc., 562
F.3d 163, 172 (2d Cir. 2009). In the last few years
alone, district courts have considered a burgeoning
number of cases raising tort claims against federal
contractors for injuries arising out of sensitive
military operations. See, e.g., Cloyd v. KBR, Inc., 536
F. Supp. 3d 113, 117 (S.D. Tex. 2021) (suit arising out
of injuries from Iranian ballistic missile attack at a
U.S. Army base); Hencely v. Fluor Corp., --- F. Supp.
3d ---, 2021 WL 3568397, at *1 (D.S.C. 2021) (lawsuit
arising out of “an attack by a foreign enemy—a
16
Taliban operative—on a U.S. Military” base in
Afghanistan); Loquasto v. Fluor Corp., 512 F. Supp. 3d
728, 731 (N.D. Tex. 2021) (“personal-injury case
arising out of a suicide bombing *** at a United States
Military base in Afghanistan”); Norat v. Fluor
Intercontinental, Inc., No. 6:16-cv-00603-BHH, 2018
WL 1382666, at *1 (D.S.C. Mar. 19, 2018) (case arising
out of a motor vehicle accident at a U.S. military
airfield in Afghanistan).
As these cases illustrate, the winding down of
active military operations in Afghanistan and Iraq has
not translated to a decrease in cases challenging
federal contractors’ activities there. And such suits
will likely only continue to grow with the aid of
decisions (like the Second Circuit’s) making it easier
for plaintiffs to sue and more difficult for defendants
to invoke the combatant-activities exception. See Pet.
23-24.
B.
State Tort Liability Creates Enormous
Uncertainty For American Businesses
Operating Overseas.
The growing number of state-law tort suits
creates distinctive problems for American businesses
that work for or in tandem with federal agencies
(especially the U.S. military) abroad.
These
businesses face several uncertainties stemming from
state-law tort suits that combine to produce powerful
settlement pressure.
The prospect of enormous
liability, following suit in an unexpected forum, based
on state tort requirements that may be unknown until
years into the litigation, after unusually expensive
and burdensome discovery, will compel many
17
defendants to settle even meritless suits. This is not
an abstract concern: Commentators have attributed
war-zone tort-dispute settlements to the “significantly
muddled” state of the law. See Brent Kendall,
Contractor’s Torture Settlement a Milestone; Payment
of $5.28 Million to Resolve Abuse Claims at Abu
Ghraib in Iraq Underscores Legal Risks for Firms in
War Zones, Wall St. J., Jan. 10, 2013. The settlement
pressure is exacerbated by the gray areas the Second
Circuit’s fact-specific preemption analysis creates
(Pet. App. 33a), which make it more difficult for
companies to assess their litigation risk.
First, the prospect of state-law tort suits creates
uncertainty for businesses, including federal
contractors, seeking to ensure that their overseas
conduct conforms to law. Permitting “extraterritorial
application of different state tort regimes *** allows
for unlimited variation in the standard of care that is
applied to” these vital “public-private partnership[s]”
abroad. Al Shimari v. CACI Int’l, Inc., 679 F.3d 205,
238, 240 (4th Cir. 2012) (Wilkinson, J., dissenting).
And the standard of care is just one variable.
Businesses must also take into account, for instance,
the cognizability of claims for aiding and abetting and
conspiracy and the availability of punitive damages.
See id. at 229.
A business’s inability to predict ex ante which
state’s tort law will govern the conduct of its
employees “lead[s] to inconsistent standards being
applied and uncertainty on the part of actors who wish
to conform their conduct to the law.” Katherine
Florey, State Courts, State Territory, State Power:
Reflections on the Extraterritoriality Principle in
18
Choice of Law and Legislation, 84 Notre Dame L. Rev.
1057, 1064 (2009) (“Reflections”). Such inconsistency
and uncertainty affects the day-to-day operations of
American businesses working in partnership (or
considering partnership) with U.S. agencies abroad.
The Third Circuit’s decision in Harris v. Kellogg
Brown & Root Services, Inc., 724 F.3d 458 (3d Cir.
2013) well illustrates this problem. There, “[t]he
District Court ha[d] not yet determined if” the
defendant’s conduct would be subject to the law of its
principal place of business (Texas), the law of the
decedent’s former residence (Tennessee), or even the
law of the decedent’s estate administrators’ residence
(Pennsylvania). Id. at 469 n.10. As the court of
appeals recognized, the district court’s choice-of-law
decision would determine the standard of care and
scope of damages, and perhaps even whether the
claims could proceed at all. Id. at 478. But the choiceof-law question was not resolved until many years into
the litigation. Harris v. Kellogg, Brown & Root Servs.,
Inc., 151 F. Supp. 3d 600, 603-604 (W.D. Pa. 2015).
Instead of being able to make informed decisions at the
outset, businesses are placed in the untenable position
of facing unknown legal consequences for past
conduct, with no certainty as to the applicable law.
Second, businesses operating abroad face
uncertain—and potentially extraordinary—litigation
costs if haled into federal court on state-law tort
claims. Foreign tort cases are costly in part because
they are pressed half a world away from the locus of
the injury and from the relevant documents,
witnesses, and evidence. Cf. Atlantic Marine Constr.
Co. v. U.S. Dist. Court for W. Dist. of Tex., 571 U.S. 49,
19
62-63 (2013) (access to proof, premises, witnesses, and
cost bear on appropriateness of forum).
Those
expenses are even higher in many suits against federal
contractors, as the countries where they work tend to
have “undeveloped legal system[s] that do[] not, or
cannot, cooperate with discovery[.]” Alan O. Sykes,
Corporate Liability for Extraterritorial Torts Under
the Alien Tort Statute and Beyond: An Economic
Analysis, 100 Geo. L.J. 2161, 2190 (2012). And
discovery is doubly burdensome in cases, like this one,
where documents and evidence pertain to battlefield
incidents and sensitive military decisionmaking, see
Pet. App. 3a-5a, and may be located in post-conflict
regions (like Afghanistan) where contractors are no
longer present, see Jack Detsch, Report: Departure of
Private Contractors Was a Turning Point in Afghan
Military’s Collapse, Foreign Policy (Aug. 16, 2021).
The fact-intensive approach exemplified by the
Second Circuit’s decision here compounds the costs,
turning on evidence regarding, inter alia, the U.S.
military’s specific involvement in the particular event
at issue. See Pet. App. 35a-37a. Costly discovery into
that relationship is all but certain, even into claims
that are eventually determined to be preempted.
Compare Cloyd, 536 F. Supp. 3d at 127 (denying
motion to dismiss lawsuit as preempted under FTCA
combatant-activities
exception
and
ordering
discovery), with Cloyd v. KBR, Inc., --- F. Supp. 3d ---,
2021 WL 5494685, at *6-*10 (S.D. Tex. 2021) (later
granting summary judgment on grounds of FTCA
preemption following discovery). Even supposedly
“limited” discovery into these threshold preemption
questions has proven to be “massive” in practice. In re
20
KBR Inc., Burn Pit Litig., 268 F. Supp. 3d 778, 787788 (D. Md. 2017), aff’d in part, vacated in part and
remanded by In re KBR, Inc., 893 F.3d 241 (4th Cir.
2018) (describing “limited” jurisdictional discovery,
which included “over 5.8 million pages of documents,
including more than 3 million pages of emails and
other electronic data” and “thirty-four depositions of
various witnesses *** including military personnel in
both the operational and contracting commands”).
Under that approach—which many circuits have
sanctioned, e.g., Pet. 13-20—the mere filing of a
lawsuit threatens a federal contractor with extensive
(and expensive) discovery.
Third, businesses must account for potential,
possibly astronomical, liability. Substantive tort law
and procedural rules in U.S. courts “produce much
larger recoveries” than could be obtained in foreign
courts. Jack L. Goldsmith & Alan O. Sykes, Lex Loci
Delictus and Global Economic Welfare: Spinozzi v. ITT
Sheraton Corp., 120 Harv. L. Rev. 1137, 1137 (2007).
Awards in cases against war-zone contractors
illustrate this reality. See Bixby v. KBR, Inc., 603 F.
App’x 605, 606 (9th Cir. 2015) (vacating $80 million
damages award in case against military contractor).
Projecting those potential costs can be difficult,
particularly when businesses have to consider
potential liability arising from “the tort regimes of all
fifty states.” Al Shimari, 679 F.3d at 234 (Wilkinson,
J., dissenting). Businesses must also consider the
prospect that “different jurisdictions [could] issue
inconsistent judgments,” leading to conflicting or
multiple liability. Florey, Reflections, 84 Notre Dame
L. Rev. at 1064.
21
C.
State Tort Liability Will Deter Some
American Contractors And Lead Others
To Demand Higher Fees.
Suits challenging overseas conduct deter
corporate investment abroad, thereby harming not
only businesses but also the countries where they
operate. See generally Amicus Curiae Br. of the
Chamber of Commerce of the United States of
America, Kiobel v. Royal Dutch Petroleum Co., No. 101491 (2013). For all the reasons discussed, American
contractors—particularly smaller businesses with
fewer resources to absorb the various layers of
uncertainty—may well hesitate to enter into the vital
partnerships that sustain U.S. interests abroad. See
Filarsky v. Delia, 566 U.S. 377, 390-391 (2012)
(recognizing that “private individuals [who] work in
close coordination with public employees[] and face
threatened legal action for the same conduct” will
“think twice before accepting a government
assignment”). Just as a domestic tort suit 25 helped
encourage Talisman Energy to stop doing business in
Sudan, see Stephen J. Kobrin, Oil and Politics:
Talisman Energy and Sudan, 36 N.Y.U. J. Int’l L. &
Pol. 425, 426 (2004), it would hardly be surprising if
federal “contractors *** prove reluctant to expose their
employees to litigation-prone combat situations,” post25 Plaintiffs effectively sought “to impose embargoes or
international sanctions through civil actions in United States
courts.” Presbyterian Church of Sudan v. Talisman Energy, Inc.,
582 F.3d 244, 261 (2d Cir. 2009) (plaintiffs’ ATS allegations
“serve[d] essentially as proxies for their contention that
[defendant business] should not have made any investment in the
Sudan”), cert. denied, 562 U.S. 946 (2010).
22
conflict zones, disaster relief efforts, and the like.
Saleh v. Titan Corp., 580 F.3d 1, 8 (D.C. Cir. 2009); see
Al Shimari, 679 F.3d at 238-239 (Wilkinson, J.,
dissenting) (faced with “extraterritorial application of
different state tort regimes,” “[c]ontractors can be
forgiven for not wanting to trust their employees to the
vagaries and caprice of individual verdicts and
trials[]”).
Given the government’s regular and “particular
need for specialized knowledge or expertise,” it must
often “look outside its permanent work force to secure
the services of private individuals.” Filarsky, 566 U.S.
at 390-391; see Al Shimari, 679 F.3d at 240-241
(Wilkinson, J., dissenting) (“Few, if any, governmental
tasks are undertaken today without some form of
public-private partnership.”). Limiting the pool of
available contractors will reduce the government’s
options and may eliminate companies best able to
assist the government.
Expansive state tort liability may also deter
multinational companies working with the United
States abroad from establishing a domestic business
presence in the United States or otherwise investing
here. That would dampen a “key driver of the economy
and *** an important source of innovation, exports,
and jobs.”
U.S. Dep’t of Commerce, The U.S.
Litigation
Environment
and
Foreign
Direct
Investment, Supporting U.S. Competitiveness by
Reducing Legal Costs and Uncertainty 2 (2008).
At the same time, increasing the cost to U.S.
companies will give foreign firms a competitive
advantage and eliminate prospective jobs for
23
Americans. Because foreign corporations “are beyond
the reach of U.S. courts both as a legal and practical
matter,” they “may have little to fear from ***
litigation *** under state tort law[.]” Sykes, Corporate
Liability, 100 Geo. L.J. at 2193. Enhanced liability
under U.S. law thus effectively imposes a state-tort
“tax” on domestic businesses that “reduce[s] the
competitiveness
of
U.S.
firms
and
other
multinationals subject to suit in the United States.”
Id. at 2194.
Permitting extraterritorial state tort liability also
means that the U.S. government will pay more to work
with the smaller pool of contractors that remains. The
risk of state tort lawsuits creates a significant cost
that American businesses must absorb. See pp. 16-20,
supra. Those businesses, in turn, “predictably raise
their prices to cover, or to insure against, contingent
liability” for their work as federal contractors. See
Boyle v. United Technologies Corp., 487 U.S. 500, 511512 (1988). The costs of “state tort suits against
contractors” will “ultimately be passed through,
substantially if not totally, to the United States itself.”
Id. (noting that state laws encouraging this result
present a “significant conflict” with federal policy).
Those higher costs “chill both the government’s ability
and willingness to contract by raising the price of
partnering with private industry[.]” Al Shimari, 679
F.3d at 243 (Wilkinson, J., dissenting). Ultimately,
the costs for “imposing tort liability on government
contractors” are borne by “the American taxpayer.”
Saleh, 580 F.3d at 8.
24
D.
State Tort Liability Undermines Vital
Government Operations And Impinges
On Foreign Policy.
As this Court has observed, suits challenging
overseas conduct raise significant “foreign policy
concerns.” Nestlé USA, 141 S. Ct. at 1939. The threat
of state tort liability against U.S. companies and
contractors working with the federal government
abroad has noneconomic costs as well. Insulating
private persons doing the public’s work from tort
liability helps “[e]nsur[e] that those who serve the
government do so ‘with the decisiveness and the
judgment required by the public good,’” and protects
against “‘unwarranted timidity’ on the part of those
engaged in the public’s business.” Filarsky, 566 U.S.
at 390 (citations omitted). Removing that layer of
protection by imposing extraterritorial “tort law may
*** lead to excessive risk-averseness on the part of
potential defendants,” Al Shimari, 679 F.3d at 226
(Wilkinson, J., dissenting), and will “surely hamper
military flexibility and cost-effectiveness,” Saleh, 580
F.3d at 8. That concern is especially pressing where
U.S. military personnel or other federal employees
may be immune from state tort liability, requiring
private actors to tread lightly or “be left holding the
bag[.]” Filarsky, 566 U.S. at 391; see id. (discussing
implications when private actors “fac[e] full liability
for actions taken in conjunction with government
employees who enjoy immunity”).
Moreover, given the close interaction between
public and private personnel today, even a routine
foreign tort case requires the collection of evidence and
testimony from military and government personnel.
25
Depositions of military officials and contracting
personnel are disturbingly common in these cases.
See, e.g., Harris v. Kellogg, Brown & Root Servs. Inc.,
878 F. Supp. 2d 543, 557-560 & 567 n.16 (W.D. Pa.
2012), rev’d by Harris, 724 F.3d 458 (3d Cir. 2013); see
also In re KBR, Inc., Burn Pit Litig., 268 F. Supp. 3d
at 792-802 (describing evidentiary hearing testimony
from U.S. Army commanding generals and senior
DOD officials). Such “broad-ranging discovery and the
deposing of numerous persons *** can be particularly
disruptive of effective government.”
Harlow v.
Fitzgerald, 457 U.S. 800, 816-817 (1982). That is
especially true in the military context, where a trial is
liable to “involve second-guessing military orders, and
would often require members of the Armed Services to
testify in court as to each other’s decisions and
actions.” Stencel Aero Eng’g Corp. v. United States,
431 U.S. 666, 673 (1977).
Yet such judicial
“interference” with the conduct of important
government business “is precisely what we invite by
ascribing to the fifty states the unexpressed wish that
their tort law govern the conduct of military [and other
governmental] operations abroad.” Al Shimari, 679
F.3d at 232 (Wilkinson, J., dissenting).
In the end, the largest cost for the federal
government may come in the form of interference with
its foreign policy prerogatives. Our Constitution
expressly entrusts the political branches of the
national government with the foreign affairs power,
see U.S. CONST. art. I, § 8, cls. 1, 11-15; art. II, § 2, cls.
1-2, and thereby deprives the States of the same, id.
art. I, § 10. Therefore, when a state’s law encroaches
upon the “effective exercise of the Nation’s foreign
26
policy,” it “must give way.” Zschernig v. Miller, 389
U.S. 429, 440 (1968).
Congress and the Executive Branch set
standards for how workers under federal contracts
should conduct themselves in foreign nations, and for
how they are held responsible for the harms they cause
doing the government’s work. Allowing fifty different
states to regulate the way that contractors operate on
far-flung battlefields and in embassies, on overseas
reconstruction projects, and during international
humanitarian missions will alter that carefully struck
balance.
The ensuing lack of uniform federal
standards may “compromise the very capacity of the
President to speak for the Nation with one voice in
dealing with other governments” and nations. Crosby
v. National Foreign Trade Council, 530 U.S. 363, 381
(2000). Such state tort intrusion “undercuts the
President’s diplomatic discretion and the choice he has
made exercising it.”
American Ins. Ass’n v.
Garamendi, 539 U.S. 396, 423-424 (2003).
For that reason, as Judge Wilkinson has
observed, “state tort claims have no passport that
allows their travel in foreign battlefields[.]” Al
Shimari, 679 F.3d at 227. The time has come for this
Court to consider whether the steep and significant
costs to both U.S. companies and the federal
government justify the application of state law to
federal contractors operating overseas.
CONCLUSION
For the foregoing reasons, the petition for a writ
of certiorari should be granted.
Respectfully submitted.
27
Stephanie A. Maloney
Tyler S. Badgley
U.S. CHAMBER LITIGATION
CENTER
January 10, 2022
Pratik A. Shah
Counsel of Record
Aileen M. McGrath
AKIN GUMP STRAUSS
HAUER & FELD LLP
This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.