W.S. Kirkpatrick & Co. v. Environmental Tectonics Corp.
Citation and Court
493 U.S. 400 (1990), Supreme Court of the United States
Facts
Environmental Tectonics Corp. (ETC) alleged that W.S. Kirkpatrick won a Nigerian government contract by bribing Nigerian officials, in violation of the Foreign Corrupt Practices Act and other laws. Kirkpatrick moved to dismiss, arguing that adjudicating the bribery claim would require the court to declare the Nigerian government’s actions invalid — implicating the act of state doctrine.
Issue
Whether the act of state doctrine bars an American court from adjudicating a civil claim when the resolution of that claim would require findings about foreign governmental corruption, even if the court is not asked to declare the foreign sovereign act invalid.
Holding
The act of state doctrine does not apply; the doctrine only bars courts from declaring foreign sovereign acts invalid, not from making factual findings about whether such acts occurred or were motivated by corruption.
Rule / Doctrine
The act of state doctrine requires that the resolution of a case turn on the validity of a foreign sovereign act — a declaration that the act was illegal or void. It does not bar litigation merely because the outcome would be politically embarrassing to a foreign government or would require findings that a foreign official acted corruptly. The act of state doctrine is inapplicable where U.S. law is being applied to conduct by U.S. persons.
Significance
Kirkpatrick is the most important modern limitation on the act of state doctrine: it restricts the doctrine strictly to cases where a court must declare a foreign sovereign act invalid. It cleared the way for enforcement of the Foreign Corrupt Practices Act and similar statutes even when foreign officials are implicated.