Bi v. Union Carbide Chemicals & Plastics Co.

984 F.2d 582 (1993)

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Bi v. Union Carbide Chemicals & Plastics Co.

United States Court of Appeals for the Second Circuit
984 F.2d 582 (1993)

Facts

The Bhopal disaster was a chemical accident that occurred in Bhopal, India, at a Union Carbide India Limited (UCIL) plant. UCIL was a subsidiary of the United States company Union Carbide (defendant). The Indian government, pursuant to standing conferred by the Bhopal Act, passed by the India legislature, brought a suit in Indian court against UCIL on behalf of those injured in the disaster. The India Supreme Court approved a $470-million-dollar settlement to be paid by UCIL to the injured. Following the settlement, two class actions were filed in Texas state court by the injured (plaintiffs) seeking compensation from Union Carbide for injuries sustained in the Bhopal disaster. The class representatives asserted that the Indian court settlement was inadequate, and the Indian government, as UCIL, had a conflict of interest in negotiating the settlement. The cases were removed to federal court before a multidistrict litigation panel transferred the cases to the southern district of New York. The district judge dismissed the claims based on forum non conveniens. The plaintiffs appealed.

Rule of Law

Issue

Holding and Reasoning (Newman, J.)

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