The US Court of Appeals for Ninth Circuit on Tuesday reversed the dismissal of a lawsuit against Nestle, Cargill Cocoa and other companies accusing them of aiding and abetting child slave labor in the Ivory Coast.
The lawsuit was brought by former child slaves who worked on cocoa farms in the Ivory Coast. Nestle and Cargill are accused of giving financial and technical support to farmers in the Ivory Coast while being aware that the farmers used slave labor. The complaint accuses the companies of “depend[ing] on—and orchestrat[ing]—a slave-based supply chain.”
The district court had dismissed the case stating that the lawsuit claimed an impermissible extraterritorial application of the Alien Tort Statute (ATS). The aourt of appeals found that a claim against a company can be brought in the US if conduct relevant to the ATS’s focus occurred in the US, even if other conduct occurred outside of the country.
The lawsuit accuses the defendants of regularly sending employees of the US headquarters to inspect the Ivory Coast operations and reporting back the the US headquarters where financing decisions were made. The defendants are also accused of giving personal spending money to the farmers which was akin to “kickbacks” which funded child slavery practices. The court found the “narrow set of domestic conduct is relevant to the ATS’s focus.”
The defendants also asked the court to rule that the plaintiffs did not provide sufficient elements of aiding and abetting. They refused to do so and instead directed the plaintiffs to amend their complaint to “specify which potentially liable party is responsible for what culpable conduct.” The case was remanded to the district court.
The case comes just weeks after a Northern District of California judge allowed a forced labor lawsuit against Tesla to continue. Human Rights Watch has previously accused Israeli settlement farmers, Afghanistan and Mali gold mines of violating child labor laws.