German Automaker Could Face US Lawsuit Over Alleged Link To Murders In Argentina's Dirty War
Mercedes-Benz in Argentina, a subsidiary of DaimlerChrysler AG (DCAG), - a since-sold German-American hybrid company - allegedly notified the Argentinian government of plant-workers subversive to the government in the 70s and 80s when a military dictatorship in Argentina kidnapped, tortured, and murdered almost 30,000 "subversives," notably labor union members and organizers.
A group of 22 survivors and heirs, all either Argentinian citizens or residents, sued DCAG in California in 2005 under the Alien Tort Statute, which lets people sue companies for human rights violations in U.S. courts.
They allege the company knew the Argentinian government would kidnap, torture, and murder these workers, thus silencing union activists.
Their case has to have some connection to the U.S. in order for their lawsuit in California to survive, SCOTUSBlog has explained. The Supreme Court will have to decide whether the Argentinian residents can sue DaimlerChrysler - a German company - in the U.S. simply because it has a subsidiary that sells cars in America.
Initially, a district court ruled that Daimler Benz AG, a German corporation, had merged with the American Chrysler Corporation to form DCAG when the suit was filed. Therefore, DCAG maintained "dual operational headquarters" in Germany and Detroit, Mich, according to the opinion. The company also fully owns its American subsidiary, Mercedes Benz USA, which does business often in California. Therefore, the German owned DCAG, maintained "systematic and continuous contact" with the state, according to the opinion. In this suit, DaimlerAG is appealing that decision.
The outcome of this case could have broad effects on the legal responsibility of corporate entities, foreign or not, for human rights abuses in the U.S. court system.