Supreme Court Denies Nestle, Cargill, ADM Appeal in Slave Labor Case--Update
January 11 2016 - 2:21PM
Dow Jones News
By Brent Kendall
WASHINGTON--The Supreme Court on Monday declined to consider the
revival of a lawsuit alleging Nestlé SA's U.S. subsidiary, Archer
Daniels Midland Co. and Cargill Inc. aided and abetted child slave
labor in Africa.
The justices, without comment, turned away an appeal from the
three companies, which deny the allegations and say a federal
appeals court erred in a 2014 ruling that gave the case new
life.
Representatives for the three companies expressed disappointment
the Supreme Court didn't take up the case, but said they would
vigorously defend themselves in further lower-court
proceedings.
Nestlé, the lead company on the petition to the Supreme Court,
said child labor goes against what the company stands for. "Nestlé
is committed to following and respecting all international laws and
is dedicated to the goal of eradicating child labor from our cocoa
supply chain," the company said.
The laborers alleged they were forced as children to work on
cocoa fields in the Ivory Coast for long hours and no pay. They
filed their lawsuit in California, alleging the companies were
aware of child slave labor on Ivory Coast cocoa plantations and
facilitated human rights abuses through business relationships with
Ivorian farmers who are critical to the chocolate industry.
A federal trial judge dismissed the lawsuit in 2010 on several
grounds, including that the laborers hadn't identified any company
conduct with a direct effect on specific wrongful actions by the
farmers.
In reviving the lawsuit, a divided panel of the Ninth U.S.
Circuit Court of Appeals in San Francisco said the allegations
raised the inference that the companies put increased revenues
ahead of basic human welfare.
Despite Monday's development, it isn't clear whether the case
will eventually move forward.
The Supreme Court, in a separate 2013 case involving Royal Dutch
Shell, limited the ability of human rights lawsuits to proceed in
the U.S. when the conduct took place in foreign lands, though the
court didn't bar such cases entirely.
The appeals court in the Nestlé case said the laborers should
have the opportunity to amend their lawsuit before judges decide
whether their claims can go forward under the new rules announced
by the Supreme Court.
Write to Brent Kendall at brent.kendall@wsj.com
(END) Dow Jones Newswires
January 11, 2016 14:06 ET (19:06 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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