On December 10, 2010, the U.S. Court of Appeals for the Ninth Circuit upheld a California law allowing California courts to hear certain claims arising out of insurance policies held by Armenian Genocide victims, and extending the time to file such claims. The decision, which reverses a prior decision by the same judges, was urged by EarthRights International (ERI) in an amicus brief filed last year. In the case, Movsesian v. Victoria Versicherung, A.G., the Defendant insurance companies had argued that informal communications by prior Administrations to Congress asking it not pass proposed resolutions recognizing the Armenian Genocide established a federal policy that preempted the state law. The court, however, noted that there was no such policy, as Administrations, including the Obama Administration, had issued statements recognizing the genocide. The Court also rejected the argument that the law intrudes into the federal government’s power to conduct foreign affairs, even if there is no conflict with an explicit federal policy. The Court noted that the state, in seeking to protect the insurance claims of thousands of its residents, was promoting a traditional state interest.
ERI's amicus brief, which was filed in support of the motion for rehearing on behalf of human rights organizations, argued that the California law should not have been preempted because any federal policy against recognizing the Armenian genocide does not have the force of law, and cannot preempt state law. Given that ERI is counsel in several transnational lawsuits alleging that corporations are liable under state law for their complicity in human rights abuses abroad, ERI welcomes this decision upholding state-law claims against a corporate challenge based upon alleged interference with federal foreign affairs powers. Rick Herz, ERI's Litigation Coordinator, notes, "The Court correctly recognized that states' efforts to protect residents who suffered egregious human rights abuses does not inherently interfere with U.S. foreign policy."
Documents:
ERI Amicus Brief in Movsesian v. Victoria Versicherung, A.G.
Original Ninth Circuit opinion
Ninth Circuit opinion on rehearing
