Extraterritoriality refers to the application of a nation’s law to persons, conduct, or property outside its own territory. Customary international law allows nations to regulate extraterritorially on a number of different bases, including effects, nationality, and universal jurisdiction. Nations generally limit the extraterritorial application of their laws to a greater extent than customary international law requires. For example, the United States applies a presumption against extraterritoriality to federal law and sometimes imposes additional limitations as a matter of prescriptive comity. Some U.S. states have their own presumptions against extraterritoriality, which may differ from the federal presumption.
A Primer on Extraterritoriality
Extraterritoriality refers to the application of a state’s law beyond the state’s borders. Although the word “extraterritorial” often has negative connotations, international law permits a great deal of extraterritorial regulation. In a world where trade, information, crime, and lots of other things regularly cross borders, states often have an interest in regulating beyond the strict…
Continue ReadingWhen Is a Securities Transaction “Domestic” Under Morrison?
In Morrison v. National Australia Bank (2010), the Supreme Court held that § 10(b) of the Securities Exchange Act applies only to “transactions in securities listed on domestic exchanges, and domestic transactions in other securities.” This holding doomed the securities fraud claims in Morrison because the plaintiffs purchased their shares on the Australian Securities Exchange….
Continue Reading$29.8 Million Judgment in First-Ever Helms-Burton Jury Trial
A Cuban-American plaintiff has won a major jury verdict in the Southern District of Florida against four corporate defendants associated with Expedia Group. The case involves an island off the coast of Cuba, which the plaintiff, Mario Echevarría, claimed was expropriated from his family in 1959. The defendants provided digital platforms that allowed travelers to…
Continue ReadingDistrict Court’s Order in the Venezuelan Deportees Case Was Not Extraterritorial
As was widely reported yesterday, the Trump administration permitted two planes carrying Venezuelan deportees to continue on their way to El Salvador after receiving a judicial order to turn the flights back to the United States. A story in Axios quotes an administration official who explains that they were not in fact “actively defying” the…
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