Jesner v. Arab Bank, PLC

Jesner v. Arab Bank, PLC, decided on April 24, 2018, is a landmark U.S. Supreme Court case. The plaintiffs, including Joseph Jesner, were victims and family members of victims of terrorist attacks in Israel, the West Bank, and Gaza perpetrated by groups such as Hamas. They alleged that Arab Bank, PLC, a Jordanian financial institution, facilitated these attacks by knowingly providing banking services to terrorist entities and operatives, thereby violating the law of nations. The plaintiffs sought damages under the Alien Tort Statute (ATS), a 1789 law that allows foreign nationals to sue in U.S. federal courts for violations of international law. The central legal question was whether foreign corporations can be subject to liability under the ATS. In a 5-4 decision authored by Justice Anthony Kennedy, the Supreme Court held that foreign corporations may not be sued under the ATS. The Court emphasized judicial caution in light of foreign policy consequences and separation-of-powers principles, concluding that creating a corporate liability cause of action should be left to Congress. The ruling affirmed the dismissal of the lawsuit and barred ATS claims against foreign companies.

In a 5-4 decision, the U.S. Supreme Court ruled that foreign corporations are not subject to liability under the Alien Tort Statute, affirming the lower court's dismissal of the case.

Whether a foreign corporation can be held liable under the Alien Tort Statute for allegedly violating international law by facilitating terrorism through its financial services.

The ruling significantly curtailed the ability of human rights victims to seek redress against foreign corporations in U.S. courts under the Alien Tort Statute. It intensified debate over corporate accountability for complicity in terrorism and human rights abuses, creating pressure on Congress to pass legislation that expressly establishes corporate liability. The decision was viewed as a victory for multinational banks and a setback for victims of terrorism financing seeking judicial remedies.