Opinion · Supreme Court of the United States

American Banana Co. v. United Fruit Co.

213 U.S. 347

Type
Opinion
Court
Supreme Court of the United States
Jurisdiction
Federal
Date
1909-04-26
Topic
general

How later courts describe this case

  • holding that complaint based upon foreign conduct "alleges no case under the [Sherman Act]"
  • holding that “the acts of the defendant in Panama or Costa Rica [were] not within the Sherman act”
  • act of state doctrine barred judicial inquiry into seizure of planta tion by Costa Rican soldiers allegedly acting at the behest of the defendant company
  • discredited in United States v. Sisal Sales Corp., 274 U.S. 268, 47 S.Ct. 592, 71 L.Ed. 1042 (1927), United States v. Aluminum Co. of Am., 148 F.2d 416 (2d Cir.1945
  • sub-stantial abrogation recognized by United Phosphorus, Ltd. v. Angus Chemical Co., 322 F.3d 942, 947 (7th Cir.2003)
  • "[T]he general and almost universal rule is that the character of an act as lawful or unlawful must be determined wholly by the law of the country where the act is done."
  • “[I]n case of doubt,” a statute should be construed “as intended to be confined in its operation and effect to the territorial limits over which the lawmaker has general and legitimate power.”
  • defining "high seas" as a region "subject to no sovereign"

Citator

American Banana Co. v. United Fruit Co. is no longer good law, at least in part: overruled by W.S. Kirkpatrick & Co. v. Environmental Tectonics Corp., 493 U.S. 400 (1990). 367 later decisions cite it, 1 of them negatively.

Authority status
negative
Cited by
367 opinions
Negative treatment
1 citing opinion

Headnotes

  1. Civil Procedure — Choice of Law The general and almost universal rule is that the character of an act as lawful or unlawful must be determined wholly by the law of the country where the act is done. 213 U.S. 347, 356
  2. Statutory Interpretation — Territorial Presumption All legislation is prima facie territorial; a statute will be construed as intended to be confined in its operation and effect to the territorial limits over which the lawmaker has general and legitimate power, and words of universal scope will be taken to mean only those subject to the legislation. 213 U.S. 347, 357
  3. Antitrust & Competition Law — Sherman Act — Territorial Scope The prohibitions of the Sherman Anti-Trust Act do not extend to acts done in foreign countries, even though those acts are done by citizens of the United States and injuriously affect other citizens of the United States. 213 U.S. 347, 355–357
  4. Torts — Acts of Foreign Sovereign — Nonjusticiability A seizure of property by a state acting within its de facto jurisdiction is not a thing that can be complained of in the courts of another country; the fact that de jure sovereignty over the territory lies elsewhere does not matter, because sovereignty is pure fact. 213 U.S. 347, 357–358
  5. Torts — Persuasion of Sovereign Power It is a contradiction in terms to say that within its jurisdiction it is unlawful to persuade a sovereign power to bring about a result that the sovereign declares by its conduct to be desirable and proper; the sovereign's decree makes the persuasion lawful, and foreign courts cannot condemn the influences persuading the sovereign to make the decree. 213 U.S. 347, 358
  6. Torts — Acts of Foreign Officials — Attribution to Sovereign The acts of soldiers and officials of a foreign government, where not alleged to have been without the government's consent, must be taken to have been done by its order; the sovereign's subsequent ratification and retention of the possession taken by them adopts those acts. 213 U.S. 347, 359–360
  7. Antitrust & Competition Law — Conspiracy — Acts Abroad A conspiracy in this country to do acts in another jurisdiction does not draw to itself those acts and make them unlawful if they are permitted by the local law. 213 U.S. 347, 360