The question presented in Kiobel v. Royal Dutch Petroleum Co. was whether the Alien Tort Statute (ATS) gives district courts the authority to recognize a cause of action for violations of the law of nations occurring in a foreign country.

The petitioners, Nigerian nationals living in the US as legal residents, sued certain British, Dutch and Nigerian corporations under the ATS for aiding and abetting the Nigerian government in violently suppressing environmental protests in Nigeria. The ATS provides district courts jurisdiction over any civil action by an alien for a tort only, committed in violation of the law of nations or a treaty of the US. The district court dismissed some of the claims, holding that the alleged facts did not give rise to a violation of the law of nations and certified its order for interlocutory appeal. The US Court of Appeals for the Second Circuit dismissed the entire complaint, holding that the law of nations does not recognize corporate liability.

The Supreme Court granted certiorari to consider whether the law of nations recognizes corporate liability. However, after oral argument, the Court directed the parties to address the additional question of whether and under what circumstances the ATS allows courts to recognize a cause of action for violations of the law of nations occurring within the territory of a sovereign other than the US.

In its April 17, 2013 opinion in Kiobel v. Royal Dutch Petroleum Co., the Supreme Court affirmed the Second Circuit's dismissal concluding that the ATS does not reach conduct that occurs in the territory of another sovereign, reasoning that:

This ruling severely limits the application of the ATS. Plaintiffs cannot use the ATS to sue in federal court for conduct committed abroad.