International Law

Supreme Court Overturns Ruling Favoring Marcos Victims

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The U.S. Supreme Court has ordered dismissal of a case seeking to sort out whether victims of the regime of Ferdinand Marcos are entitled to $35 million in assets held in this country.

In a 7-2 decision, the court ruled that a Philippine court should be allowed to decide ownership of $35 million allegedly funneled out of the country by Marcos, the Associated Press reports.

More than 9,500 plaintiffs are seeking the money held in a Merrill Lynch brokerage account to help satisfy a $2 billion judgment. They include victims and heirs of those who were tortured or executed during martial law. The Philippine government also asserts a right to the money but claims a U.S. court cannot hear the case because of sovereign immunity. It has filed suit in the Philippines.

The San Francisco-based 9th U.S. Circuit Court of Appeals had allowed a federal judge to hear the interpleader action filed by Merrill Lynch without the participation of the Philippine government. The appeals court had said the Philippine government probably would not prevail on its claim, so the action could proceed. The judge went on to find for the victims.

The U.S. Supreme Court in an opinion by Justice Anthony M. Kennedy said the 9th Circuit gave insufficient weight to the country’s sovereign status and further erred by reaching the merits of its claims.

“There is a comity interest in allowing a foreign state to use its own courts for a dispute if it has a right to do so,” Kennedy wrote. “The dignity of a foreign state is not enhanced if other nations bypass its courts without right or good cause.”

The case is Republic of Philippines v. Pimental (PDF posted by SCOTUSblog).

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