Apartheid reparations lawsuits (re So. Africa)

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In 2002 a group of South Africans, represented by the Khulumani Support Group, sued 20 banks and corporations in US federal court that did business in South Africa during apartheid.  The plaintiffs allege that the participation of the defendant companies in key industries during the apartheid era was influential in encouraging and furthering abuses against black Africans during that time.  The plaintiffs are victims of human rights abuses such as extrajudicial killings, torture and rape, and they allege that the defendants’ activities in South Africa during the apartheid era made them complicit in the commission of those abuses. 

The South African Government was opposed to this lawsuit, and it filed documentation with both the district court and appeals court publicly stating its position regarding the case.  A federal district court judge granted the defendants’ motion to dismiss in November 2004.  The plaintiffs appealed this dismissal in August of 2005.  In October of 2007, the appeals court reversed the lower court's dismissal of this case and remanded the case back to the lower court for further proceedings.  On 10 January 2008, the defendant companies petitioned the US Supreme Court for certiorari, asking the court to hear their appeal of the October 2007 decision of the US Court of Appeals for the Second Circuit.  In May 2008, the US Supreme Court declared that it could not intervene in this case because four of the nine justices had to recuse themselves for apparent conflicts.  Lacking the required quorum, the Supreme Court had no option but to uphold the decision of the Second Circuit Court of Appeals allowing the lawsuit to proceed.  On 8 April 2009, the federal district court issued a ruling in this case.  The judge's ruling narrowed the claims in the case but allowed the case to continue against Daimler, Ford, General Motors, IBM and Rheinmetall Group.  In September 2009, the South African Government announced its support of the lawsuit, withdrawing its previous opposition to the case. 

The South African Justice Minister sent a letter to the District Court judge informing her that the government believes the court to be the appropriate forum to decide this case.  In August 2013 the US Court of Appeals for the Second Circuit returned the case to the lower court and recommended dismissing the case, citing the US Supreme Court's limitation on extraterritorial application of the Alien Tort Claims Act in Kiobel v. Shell.  On 26 December 2013 the lower court issued an order dismissing Daimler and Rheinmetall from the case, but the court declined to dismiss the claims against IBM and Ford. In April 2014, the lower court ruled the plaintiffs could amend their complaints against Ford and IBM to provide evidence that the companies' activities "touch and concern" the territory of the United States. The judge said that in order to overcome the presumption against extraterritoriality set forth in Kiobel, the plaintiffs must show corporate presence plus additional factors. On 29 August 2014, the lower court judge dismissed the case finding that the plaintiffs had not shown a sufficient connection with the United States to warrant the case being heard in US court.  On 27 July 2015, the court of appeals upheld the lower court's dismissal of the case. On 20 June, the US Supreme Court rejected the plaintiffs’ appeal, of a lower court decision holding that the plaintiffs had failed to show a sufficiently close connection between IBM and Ford’s actions in the US and human rights abuses by the apartheid government.

On 27 February 2012, the plaintiffs reached a settlement with General Motors.

- "U.S. top court declines to revive apartheid claims against IBM, Ford", Lawrence Hurley, Reuters, 20 Jun 2016
- "Ford, IBM defeat appeal over apartheid abuses - U.S. court", Jonathan Stempel, Reuters, 27 Jul 2015
- "Apartheid corporate lawsuit dismissed", Reuters, 29 Aug 2014
- "U.S. judge dismisses apartheid claims against 2 German companies", Nate Raymond, Reuters, 27 Dec 2013
- "High Court Decision Cited in Rejection of Apartheid Liability", Brendan Pierson, New York Law Journal, 22 Aug 2013 
- "US General Motors settles apartheid reparations claim", Adrian Ephraim, Mail & Guardian, 29 Feb 2012
- "State supports apartheid-era victims", Christelle Terreblanche, Cape Times [So. Africa], 3 Sep 2009
- "Judge Narrows Claims in Apartheid Torts Case Against Multinational Companies", Mark Hamblett, New York Law Journal, 9 Apr 2009
- "Court won't block U.S. lawsuit by apartheid victims", Mark Sherman, Associated Press, 12 May 2008
- “US court allows apartheid claims to go forward”, Paritosh Bansal, Reuters, 12 Oct 2007
- “Apartheid Victims Sue Global Corporations”, Alison Raphael, OneWorld US, 13 Nov 2002

- South African Minister of Justice and Constitutional Development Jeffrey Radebe: [PDF] Letter to Judge Shira Scheindlin regarding In Re South African Apartheid Litigation, 1 Sep 2009
- South African Minister of Justice and Constitutional Development Dr. P M Maduna: [PDF] Declaration of Minister Maduna to US District Court Judge Spizzo, 11 Jul 2003

- South African Minister of Foreign Affairs Nkosazana Dlamini Zuma: [PDF] Letter to US Secretary of State Colin Powell Re Apartheid Litigation, 16 May 2002

 

- Schonbrun DeSimone Seplow Harris & Hoffman LLP (plaintiffs’ co-counsel): case summary (includes links to legal briefs filed in this case)
- Hausfeld LLP (plaintiffs' co-counsel):  Khulumani v. Barclays National Bank Ltd. - Info Center
- Khulumani Support Group (plaintiffs): Khulumani Lawsuit in New York
- Khulumani Support Group: US Circuit Court dismisses apartheid litigation, 22 Aug 2013

- [PDF] Balintulo v. Ford, IBM, US Court of Appeals for the Second Circuit, 27 Jul 2015 [order affirmng lower court's dismissal]
- [PDF] In re South African Apartheid Litigation, US District Court for the Southern District of New York, 29 Aug 2014 [order dismissing the lawsuit]
- [PDF] In re South African Apartheid Litigation, US District Court for the Southern District of New York, 26 Dec 2013 [order dismissing Daimler & Rheinmetall from case]
- [PDF] Balintulo v. Daimler AG, US Court of Appeals for the Second Circuit, 21 Aug 2013
- [PDF] American Isuzu Motors, Inc., et al. v. Lungisile Ntsebeza, et al. - Brief for the United States as Amicus Curiae in Support of Petitioners, 11 Feb 2008 [brief of in support of dismissal of lawsuit]
- [PDF] American Isuzu Motors Inc. et al. v. Ntsebeza et al. - Petition for a Writ of Certiorari, 10 Jan 2008 [petition filed by the defendant companies at US Supreme Court]
- US District Court for the Southern District of New York: [PDF] In re South African Apartheid Litigation, 8 Apr 2009
- US Court of Appeals for the Second Circuit: [PDF] Khulumani v. Barclay National Bank, Ltd., 12 Oct 2007

 

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Article
5 August 2002

US holocaust lawyer to aid apartheid reparation

Author: SAPA, in Mail & Guardian [South Africa]

Meanwhile the class action lawsuit against various banks and corporations that "profiteered" from apartheid will start in New York on August 9, the leader of the legal team leader, US attorney Ed Fagan, announced on Saturday.

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Article
2 August 2002

Shell faces South Africa apartheid lawsuits

Author: Nicol Degli Innocenti, Financial Times

Royal Dutch/Shell, the oil company, is to be cited in a multi-billion-dollar class action lawsuit brought by a team of lawyers on behalf of the victims of South Africa's apartheid regime, a lawyer said on Friday...Shell, which is accused of supplying the white minority regime with oil in violation of an anti-apartheid embargo, will be added to the list, which already includes IBM, the computer company, Deutsche Bank, Dresdner Bank [part of Allianz], CommerzBank, UBS, Credit Suisse and Citicorp.

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Article
3 July 2002

Banks and Human Rights: Should Swiss Banks Be Liable For Lending To South Africa's Apartheid Government?

Author: Anita Ramasastry, Assistant Professor of Law at the University of Washington School of Law, in FindLaw

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Article
18 June 2002

Apartheid Victims to Sue Banks

Author: Associated Press

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Article
17 June 2002

Apartheid victims sue big business

Author: BBC News

A team of American and South African lawyers is about to file a $50bn class action suit in New York against Swiss and US banks accused of backing the former apartheid regime [suing Citigroup, Credit Suisse & UBS for allegedly profiting from loans to the white South African government while a UN embargo was in force]

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Article
17 June 2002

Banks sued for financing apartheid regime

Author: Nicol Degli Innocenti, Financial Times

The banks' loans allegedly allowed the cash-strapped pariah regime to buy arms and continue its oppression of the black majority...Other suits will be filed against other companies and banks in Switzerland, France, Germany, Britain and South Africa that made money from supporting the apartheid government, Mr Fagan said on Monday.

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Article
17 June 2002

Swiss, U.S. Banks Face Huge Apartheid Lawsuits

Author: Reuters

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Article
17 June 2002

US lawyer to tackle apartheid profiteering

Author: AFP, in Mail & Guardian [South Africa]

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