How far should U.S. law reach beyond U.S. borders? In June, a federal courtroom in St. Louis will confront that question in a case with implications that extend far beyond one Missouri company or one Peruvian town.
The case is Reid v. Doe Run Resources Corporation, brought by roughly 2,800 Peruvian plaintiffs alleging injuries from emissions tied to the La Oroya metallurgical complex in Peru. The plaintiffs seek to hold liable Doe Run Resources Corporation, a Missouri-based parent company, even though the facility at heart of the lawsuit was owned and operated by subsidiary Doe Run Peru, all operations were in Peru, and the facility was operating for 75 years before Doe Run Peru purchased it in 1997.
At stake is not merely a dispute over pollution claims from a century-old industrial facility. The case could reshape the boundaries of U.S. tort law, weaken confidence in international trade agreements and paralyze U.S. investment in developing nations.
First, the facts. La Oroya was not a pristine operation spoiled by careless new owners. It had operated continuously since 1922 and, when Doe Run’s Peruvian subsidiary acquired the facility in 1997, it inherited an aging industrial site that had spent decades operating with virtually no environmental controls.
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