Case Digest: Kirkpatrick Co. v. Environmental Tectonics Corp 493 U.S. 400 (1990)

Public International Law | Act of State

Facts: 

  • Nigerian government contracted Kirkpatrick for an aeromedical center at Kaduna Air Force Base.
  • Environmental Tectonics Corp., an unsuccessful bidder, discovered Kirkpatrick's bribery to win the contract.
  • Environmental Tectonics reported the bribery to Nigerian Air Force and the US Embassy, leading to a FBI investigation.
  • Kirkpatrick was charged and pleaded guilty for Foreign Corrupt Practices Act violations.
  • Environmental Tectonics sued Kirkpatrick and others under Racketeer Influenced and Corrupt Organizations Act seeking damages.
  • Defendants claimed dismissal under the act of state doctrine.
Issues:
  • Whether the act of state doctrine is applicable where the validity of a foreign government act is not in issue. NO
Held: 
The short of the matter is this: Courts in the United States have the power, and ordinarily the obligation, to decide cases and controversies properly presented to them. The act of state doctrine does not establish an exception for cases and controversies that may embarrass foreign governments, but merely requires that, in the process of deciding, the acts of foreign sovereigns taken within their own jurisdictions shall be deemed valid. That doctrine has no application to the present case because the validity of a foreign sovereign act is not at issue.

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