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Reason
Reason
Politics
Jonathan H. Adler

D.C. Circuit Rejects Conflict Mineral Suit Against Apple and Other Tech Companies

Today a unanimous panel of the U.S. Court of Appeals for the D.C. Circuit affirmed the dismissal of a lawsuit filed by former cobalt miners against several tech companies for acquiring cobalt that may have been mined using forced labor. Judge Neomi Rao wrote for the panel, joined by Judges Pillard and Srinivasan.

Judge Rao's opinion in Doe v. Apple begins:

Cobalt is an essential metal for producing the lithium-ion batteries that power modern electronics. Nearly two-thirds of the world's cobalt comes from the Democratic Republic of the Congo ("DRC"), where some of the metal can be traced to informal mining by Congolese nationals digging with primitive tools in unsafe conditions. Many of these informal miners are children, pressured into work by extreme poverty.

This lawsuit seeks to impose liability on five American technology companies for "forced labor" used for informal cobalt mining in the DRC. The plaintiffs, former cobalt miners injured in mining accidents and their representatives, sued the companies under the Trafficking Victims Protection Reauthorization Act of 2008 ("TVPRA"). That statute makes it unlawful to "participat[e] in a venture" that engages in forced labor. The plaintiffs allege the technology companies participated in a venture with their cobalt suppliers by purchasing the metal through the global supply chain. The district court dismissed the suit for a variety of reasons, including lack of Article III standing and failure to state a claim.

Although we conclude that the plaintiffs have standing to pursue their damages claims, they have failed to state a claim for relief. Purchasing an unspecified amount of cobalt through the global supply chain is not "participation in a venture" within the meaning of the TVPRA. We therefore affirm the district court's dismissal of the complaint under Rule 12(b)(6).

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