• Home
  • SAMUDRA News Alerts

SAMUDRA News Alerts

Coal power plant: NGOs worry as US court rules World Bank can't be sued for 'damages' by Kate Fried, Mir Jalal August 31,2020   |  Source: Counterview

On August 24 evening, a federal court ruled that the World Bank Group cannot be sued for any damage caused by its lending, despite last year’s Supreme Court ruling in the same case that these institutions can be sued for their “commercial activity” in the United States.

In Jam v. International Finance Corporation (IFC), US District Judge John D. Bates ruled that farmers and fishers from Gujarat, India, cannot sue the World Bank’s corporate lending arm for funding and enabling a disastrous coal power plant that has destroyed their livelihoods. The plaintiffs, represented by EarthRights International, will appeal.

In a landmark decision issued in March 2019, the Supreme Court ruled that IFC and other international financial institutions could be sued in cases based upon their “commercial activity carried on in the United States.” But Judge Bates concluded that a lawsuit over the IFC’s lending is not based upon IFC’s activity at all. He held that even if IFC knew when it made the loans that the power plant would harm these communities, the institution cannot be sued.

“The court ruled that a lawsuit against IFC, for harms caused by IFC’s lending, is not based upon IFC’s lending,” said Richard Herz, Senior Litigation Attorney at EarthRights. “That

Theme(s): Communities and Organisations.

Post Comment
Search

Title/Storyline/Country/Keyword


Select Date:

Select Themes