NAFTA Suits Against Governments

This article supports the NAFTA clause that lets foreign firms sue the US governments for redress of trade wrongs. The story is especially interesting because it shows how down and out people may enjoy punishing corporations. The author obviously sympathizes with the Canadian firm, but the story of the trial is entertaining. The Canadian firm was totally outlawyered and maybe even treated unfairly, but if it wins, the precedent will be terribly destructive.



"Nafta Meets the American Torts Process: O'Keefe V. Loewen."
George Mason Law Review, Vol. 9, No. 1, pp. 69-98, Fall 2000

Contact: MICHAEL I. KRAUSS
George Mason University School of Law
Email: mkrauss@gmu.edu

http://ssrn.com/abstract=271265


ABSTRACT: The systematic bias against out-of-state defendants in American tort law is acutely illustrated in the important Mississippi case, O'Keefe v Loewen. This case, which resulted in the bankruptcy of the Canadian defendant, has itself become an international cause celebre because of the NAFTA challenge it has spawned. In this article, the factual backdrop of the case is described, the NAFTA challenge analyzed, and the implications of the challenge for tort reform are discussed.