In Re: Union Carbide Gas Plant Disaster

Facts
On the night of 23 December 1984, a gas leak occurred at the pesticide plant of Union Carbide India Limited (UCIL) in Bhopal, India resulting in the deaths of more than 2,000 people and injuries to more than 200,000 others. . Thereafter, the India passed a law giving the Indian government the exclusive right to represent the victims of the disaster. As thus, the Indian government filed a complaint before a New York district court. The Union Carbide Corporation (UCC) filed a motion to dismiss on the ground of forum non conveniens and lack of personality. The district court granted the motion on three conditions, namely, that UCC: (1) consent to the jurisdiction of Indian courts and waive defenses based on the Statute of Limitations; (2) agree to the satisfy the judgement of the Indian court, provided it complied with the requirements of due process; and (3) be subject to discovery under the Federal Rules of Civil Procedure of the US. Consequently, the Indian government filed sued the UCIL and the UCC before the a district court in India. The UCC appealed the conditions.

Arguments for the Defendant
While Indian courts may provide an adequate alternative forum, they adhere to standards of due process much lower than that followed in the US. Hence, US courts must supervise the proceedings before Indian courts.

Issue
Whether or not the dismissal on the ground of forum non conveniens is proper.

Held
Yes. The Indian courts are adequate alternative fora.

Ratio Decidendi
Almost all of the estimated 200,000 plaintiffs are citizens and residents of India who have revoked their representation by an American counsel in favor of the Indian government, which now prefers Indian courts. Further, the UCC has already consented to the assumption of jurisdiction by the Indian courts. All the witnesses and evidence are likewise in India.
As to the conditions, the first is valid in order to secure the viability of the Indian courts as alternate fora. The second is problematic as it gives the impression that foreign judgments the UCC's consent is necessary in order for the judgement of the Indian courts to be enforceable in New York. The laws of New York, in fact, recognizes that a judgment rendered by a foreign court may be enforced in that State except if such judgment was rendered in violation of due process or without jurisdiction over the person of the defendant. The request of UCC of supervision by US courts of Indian courts is untenable. The power of US courts cannot extend beyond their territorial jurisdiction. Moreover, once US courts dismiss a case on the ground of forum non conveniens, they lose any further jurisdiction over the case, except in case of an action for enforcement later on. Denial of due process may, however, constitute a defense against the enforcement of the Indian judgment. The third condition is likewise invalid. Basic justice dictates that both parties must be given equal access to evidence in each other's possession. Hence, both parties maybe subjected to the modes of discovery under the Federal Rules of Civil Procedure on equal terms subject to approval by Indian courts.