Summary
Prevents U.S. courts from enforcing foreign court decisions against Americans who couldn't fulfill a contract because they were following U.S. sanctions.
What problem does this solve?
Americans who follow U.S. rules against doing business with certain countries can be sued in foreign courts for breaking deals. This bill stops U.S. courts from making those Americans pay what the foreign court decided.
Who does this affect?
- U.S. companies and individuals with international contracts
- Foreign entities doing business with U.S. persons
What does this bill do?
Blocks enforcement of certain foreign lawsuits
Stops any U.S. state or federal court from enforcing a foreign court judgment or arbitration award if the case was about someone following U.S. sanctions.
Allows removal and dismissal of cases
Lets a U.S. person who is sued to enforce a foreign judgment move the case to a U.S. federal court, which must then throw out the case.
Establishes a policy to protect u.s. persons
Sets an official U.S. policy to make sure Americans are not put at a disadvantage for following U.S. sanctions or export control laws.
Maintains rights for victims of terrorism
Ensures the law does not limit the rights of U.S. victims of terrorism, torture, or hostage-taking to sue their attackers under other existing laws.
Defines u.s. sanctions
Clarifies that 'U.S. sanctions' are rules that limit business with foreign countries for national security reasons, but does not include import taxes (duties).
What is the real world impact?
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Creates a legal shield for U.S. companies
Allows U.S. companies to break international contracts by claiming they are following U.S. sanctions, leaving foreign partners with no way to get their money back through U.S. courts.
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Protects Americans for following the law
Ensures that U.S. citizens and companies are not penalized in foreign courts for actions they took to comply with U.S. sanctions and export control laws, which are tools of national security.
When does this start?
This bill will take effect as soon as it is signed into law and will apply to any lawsuits that are already in progress.