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Supreme Court rules that World Bank Group can be sued in US Courts in historic decision

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WASHINGTON, DC — In a historic decision, today the United States Supreme Court decided 7-1 to overturn the International Finance Corporation (IFC)’s claim to absolute immunity from lawsuits. Under the Jam v. IFC decision, international organizations like the IFC and the World Bank can now be sued in US courts, including in relation to their commercial activities.
Previously, international organizations like the World Bank Group and its private lending arm, the IFC, had enjoyed absolute immunity, meaning that they could not be sued in US courts under any circumstances. Foreign governments have only limited immunity in the US, so today’s decision aligns international organizations’ immunity with that of foreign governments.
“For far too long, the World Bank Group has considered itself exempt from any form of litigation,” says Carla García Zendejas, Senior Attorney at the Center for International Environmental Law (CIEL), which submitted an amicus brief to the Supreme Court opposing absolute immunity. “Today’s decision is a win for communities everywhere who face tremendous obstacles seeking accountability for development projects that harm their environment, livelihoods, and rights.”
In Jam v. IFC, Indian fishing communities and farmers, represented by EarthRights International, sued the IFC in an effort to hold the institution accountable for harms resulting from the Tata Mundra Ultra Mega coal-fired power plant in Gujarat, India, which received an IFC loan in 2008. Affected communities originally sought redress through the IFC’s independent accountability mechanism, the Compliance Advisor/Ombudsman (CAO), alleging that the IFC caused the loss of their livelihoods and property and threats to their health. While the CAO found a number of counts of non-compliance, the IFC largely dismissed their findings.
To pursue adequate remedy, the communities filed suit in federal court in Washington, DC. The IFC has long claimed absolute immunity as an international organization, and lower courts have upheld the interpretation that the statutes grant the IFC greater immunity than foreign governments. With the Supreme Court’s decision, the case will now return to lower courts for litigation, in which plaintiffs will still need to show that their injury is based on commercial activity within the United States.
“While the Supreme Court ruled against the IFC, development finance institutions should view this as a win. Achieving their mission of alleviating extreme poverty and improving people’s lives doesn’t just mean investing in projects; it also means having strong and effective ways for communities to obtain remedy when things go wrong,” says García Zendejas.
“History has repeatedly shown that development finance institutions’ own internal accountability mechanisms are essential, but not enough. Today’s decision in Jam v. IFC gives communities a vital new legal avenue to hold them accountable,” says García Zendejas. “Just as importantly, it provides an incentive for these institutions to work harder to prevent harms in the first place. We hope that this decision serves as a wake-up call for the IFC and other development finance institutions to take a hard look at ensuring that their projects truly benefit communities and properly assess any risks — before those projects are even approved.”
Contact:
Amanda Kistler, Communications Director: akistler@ciel.org, 202.742.5832
Notes to Editors:
Link to EarthRights International press release: https://earthrights.org/media/historic-supreme-court-win-world-bank-group-is-not-above-the-law/

Bloomberg | 27 February 2019

US Supreme Court Rules Against World Bank Arm on Immunity

By Greg Stohr

– International Finance Corp. sought to end power plant suit
– Immunity doesn’t protect commercial activities, court says

The U.S. Supreme Court opened some American-based international organizations to lawsuits, ruling that a World Bank affiliate must defend against allegations it is responsible for environmental damage caused by a power plant in India.

Voting 7-1 on Wednesday, the court said sovereign immunity doesn’t protect those international organizations in the U.S. when they are involved in commercial activities.

The suit accuses the International Finance Corp., the World Bank’s private-sector lending arm, of inadequately supervising the plant’s construction after providing a $450 million loan. Those suing the IFC include local farmers and fishermen.

The decision could mean new legal liability for the IFC and other multilateral development banks. The ruling doesn’t affect the International Monetary Fund or the United Nations itself, both of which have complete immunity from suit under the terms of their charters.

A 1945 federal law says international organizations are entitled to the “same immunity” as foreign countries. The central question for the court was how that provision was affected by a 1976 law that said foreign governments don’t get immunity when they are involved in commercial dealings. The 1976 measure didn’t mention international organizations.

Writing for the court, Chief Justice John Roberts said the 1976 law also changed the immunity possessed by international organizations.

The 1945 law “should therefore be understood to link the law of international organization immunity to the law of foreign sovereign immunity, so that the one develops in tandem with the other,” Roberts wrote. He said the standard set by the 1976 law “hardly means unlimited exposure to suit for international organizations.”

Justice Stephen Breyer dissented, and Justice Brett Kavanaugh did not participate in the case.

The case is Jam v. International Finance Corp., 17-1011.

Original source: CIEL

WITNESS RADIO MILESTONES

Uganda: Land-grab victim communities will join counterparts in commemorating the 2024 International Day of Struggle Against Industrial Plantations.

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By Witness Radio team.

On September 21, 2024, land-grabs communities under their group, the Informal Alliance for communities affected by irresponsible land-based investments in Uganda for the first will join fellow victims in commemorating the International Day of Struggle Against Industrial Plantations, highlighting the growing threat posed by large-scale monoculture plantations.

These industrial plantations have led to the forced eviction of millions of people across Uganda, displacing indigenous communities and stripping them of their land rights and livelihoods. Driven by multinational companies and government-backed investors, with the support of government and private security entities, these evictions prioritize profits over people.

Among the many Ugandan communities still suffering the devastating impact of monoculture plantations are over 30,000 people who were violently displaced from the Namwasa and Luwunga forest reserves between 2006 and 2010 to make way for the New Forests Company’s pine and eucalyptus plantations. In addition, thousands of local and indigenous communities were illegally evicted to make way for palm oil plantations in Kalangala district. Nearly 4,000 people had their land grabbed by the Formosa tree planting company in the Mubende district, and over 35,000 were displaced in Kiryandongo to make way for industrial agriculture to grow maize, soybean, and sugarcane plantations, among others. These and other affected communities united and formed the Informal Alliance for Victims affected by irresponsible land-based investments to defend their rights in early 2019.

The International Day of Struggle Against Industrial Plantations was first celebrated on September 21, 2004, during a community network meeting fighting against industrial tree plantations in Brazil. Since then, it has become a day when organizations, communities, and movements worldwide come together to celebrate resistance and raise their voices, demanding an end to the relentless expansion of industrial tree plantations.

In Uganda, on Saturday, September 21, the 2024 commemoration will start with a radio program in a local dilect (Luganda) purposely to highlight weird experiences faced by communities displaced by large-scale monoculture plantations, struggles for justice, and holding companies and financiers accountable. A one-hour radio program starting at 10 a.m. EAT will feature leaders of the loose alliance. Listen to the radio program on Witness Radio platforms on the website www.witnessradio.org or download the Witness Radio App on playstore.

Later, land-grab victims in Uganda will join their colleagues from Africa and other countries around the globe in a webinar meeting aimed at fostering organizations’ and rural communities’ connection across member countries and communities to build confidence, share experiences, strengthen our campaign to reignite hopes and forge a bond of understanding between the Informal Alliance and victim communities shattered by destructive plantations as well as deterring future plantations expansion.

The Webinar will start at 3PM EAT and will be aired live on Witness Radio platforms on the website www.witnessradio.org or download the Witness Radio App on playstore.

Please note: Both the radio show and Webinar will be live on Witness Radio on www.witnessradio.org or download the witness radio app on playstore to listen live.

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WITNESS RADIO MILESTONES

Uganda: CSOs claim Agilis Partners forcibly evicting local communities to pave way for agribusiness; company did not respond

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Witness Radio and its partners have alleged that thousands of people from local and Indigenous communities have been forcefully evicted from their land to make way for Agilis Partners Limited’s large-scale farming operations, in violation of international human rights law.

They have raised concerns about severe human rights abuses including forced evictions and lack of prompt, fair, and adequate compensation; violations of Indigenous peoples’ right to free, prior, and informed consent; abduction, arrest, torture, and judicial harassment of human rights defenders, and alleged sexual violence against women and girls, as well as other negative social and environmental impacts.

Witness Radio and its partners representing PAPs have written to Agilis Partners on several occasions seeking a dialogue between the company and people who have been harmed however, the company has not responded to their communications.

In a letter to Agilis Partners in June 2024, 36 civil society organizations called on Agilis Partners and its financial backers to take immediate action to stop the human rights abuses and harassment committed against community members, engage in dialogue with the communities, and restore the lands to the people that have been displaced.

We invited Agilis Partners to respond to the letter, the company did not respond.

Company Responses

Agilis Partners. No Response.

Source: business-humanrights.org

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DEFENDING LAND AND ENVIRONMENTAL RIGHTS

Breaking: Witness Radio and Partners to Launch Human Rights Monitoring, Documentation, and Advocacy Project Tomorrow.

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By Witness Radio Team.

Witness Radio, in collaboration with Dan Church Aid (DCA) and the National Coalition for Human Rights Defenders (NCHRD), is set to launch the Monitoring, Documentation, and Advocacy for Human Rights in Uganda (MDA-HRU) project tomorrow, 22nd February 2024, at Kabalega Resort Hotel in Hoima District.

The project, funded by the European Union, aims to promote the protection and respect for human rights, and enable access to remedy where violations occur especially in the Mid-Western and Karamoja sub-regions where private sector actors are increasingly involved in land-based investments (LBIs) through improved documentation, and evidence-based advocacy.

The three-year project, which commenced in October 2023, focuses its activities in the Mid-Western sub-region, covering Bulisa, Hoima, Masindi, Kiryandongo, Kikuube, Kagadi, Kibale, and Mubende districts, and Karamoja sub-region, covering Moroto, Napak, Nakapiripirit, Amudat, Nabilatuk, Abim, Kaabong, Kotido, and Karenga districts.

The project targets individuals and groups at high risk of human rights violations, including Human Rights Defenders (HRDs) and Land and Environmental Defenders (LEDs). It also engages government duty bearers such as policymakers and implementers in relevant ministries and local governments, recognizing their crucial role in securing land and environmental rights. Additionally, the project involves officials from institutional duty bearers including the Uganda Human Rights Commission (UHRC), Equal Opportunities Commission, and courts, among others.

Representatives from the international community, faith leaders, and business actors are also included in the project’s scope, particularly those involved in land-based investments (LBIs) impacting the environment.

The project was initially launched in Moroto for the Karamoja region on the 19th of this month with the leadership of the National Coalition for Human Rights Defenders (NCHRD).

According to the project implementors,  the action is organized into four activity packages aimed at; enhancing the capacity and skills of Human Rights Defenders (HRDs) and Land and Environmental Defenders (LEDs) in monitoring, documentation, reporting (MDR), and protection, establishing and reinforcing reporting and documentation mechanisms for advocacy and demand for corporate and government accountability;  providing response and support to HRDs and marginalized communities; and lastly facilitating collaboration and multi-stakeholder engagements that link local and national issues to national and international frameworks and spaces.

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