WCAX.COM Local: US appeals court rejects apartheid cases against Ford, IBM

The lawsuit was filed under an 18th century law called the Alien Tort Statute, which allows non-U.S. citizens to sue in U.S. courts for violations of worldwide law, including human rights abuses.

In a decision written by Circuit Judge Jose A. Cabranes, the 2nd Circuit in Manhattan upheld a decision by Judge Shira A. Scheindlin last year that tossed out the lawsuits because the conduct at issue occurred overseas.

“The lawsuits had accused the companies of helping the South African government carry out race-based injustices by selling specially designed computers and cars”, AP said. IBM was accused of providing technology and training to perpetuate racial separation and the “denationalization” of black South Africans. Ford was also accused of using collaborating with the government to squelch union activity at its assembly plants in South Africa.

Ford and IBM in the U.S. can’t be held directly responsible for the actions of their South African subsidiaries because corporate law typically treats parent corporations and subsidiaries as legally distinct entities, the judges said.

Ford allegedly provided special vehicles to the South African police that allowed security forces there to enforce apartheid, and shared information about anti-apartheid activists with the South African government, according to the plaintiffs’ lawsuit. Less-court judge had thrown the litigation, expressing they failed to allege U.S. that is enough -centered behavior by IBM. “Moreover, where the language in the complaint seems to suggest that IBM acted purposefully, ‘it does so in conclusory terms and fails to establish even a baseline degree of plausibility of plaintiffs” claims”.

In a statement, Dearborn, Michigan-based Ford said it remains committed to expanding in South Africa, after 91 years of manufacturing there. Representatives of the parties did not immediately respond to requests for comment from Courthouse News.

This story has been corrected to show the automaker’s full corporate name is Ford Motor Co., not Ford Motor Corp.