Case Citation
Legal Case Name

AMERICAN BANANA CO. v. UNITED FRUIT CO. Case Brief

Supreme Court of United States1909
213 U.S. 347 29 S.Ct. 511 53 L.Ed. 826

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Case Brief Summary & Legal Analysis

General Brief
3 min read

tl;dr: A U.S. company sued a competitor under the Sherman Act for monopolistic acts committed in Central America. The Supreme Court held that U.S. law does not apply to conduct occurring within a foreign sovereign’s territory, especially when the injury results from official acts of that foreign government.

Legal Significance: This case established the strong presumption against the extraterritorial application of U.S. statutes and articulated an early, robust version of the act of state doctrine, which bars U.S. courts from judging the validity of a foreign government’s sovereign acts committed within its own territory.

AMERICAN BANANA CO. v. UNITED FRUIT CO. Law School Study Guide

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Case Facts & Court Holding

Key Facts & Case Background

Plaintiff, American Banana Co., alleged that Defendant, United Fruit Co., had monopolized the banana trade. Plaintiff purchased a banana plantation and began constructing a railway in Panama. Plaintiff alleged that United Fruit, seeking to eliminate competition, instigated the government of Costa Rica to interfere. Subsequently, Costa Rican soldiers seized a portion of Plaintiff’s plantation, railway, and supplies. An ex parte proceeding in a Costa Rican court then declared the plantation belonged to an agent of United Fruit. Plaintiff claimed these actions, orchestrated by United Fruit, destroyed its business and violated the Sherman Antitrust Act. All the alleged harmful acts, including the seizure of property and disruption of business, occurred outside the United States, primarily in Panama and Costa Rica. The lower courts dismissed the complaint for failure to state a cause of action.

Court Holding & Legal Precedent

Issue: Does the Sherman Antitrust Act apply extraterritorially to hold a U.S. corporation liable for acts committed in a foreign country, particularly when those acts involved the direct intervention and sovereign authority of the foreign government?

No. The Sherman Act does not apply to the defendant’s conduct because Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit e

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IRAC Legal Analysis

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Legal Issue

Does the Sherman Antitrust Act apply extraterritorially to hold a U.S. corporation liable for acts committed in a foreign country, particularly when those acts involved the direct intervention and sovereign authority of the foreign government?

Conclusion

This case established foundational principles of U.S. foreign relations law. While later Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequa

Legal Rule

Legislation is presumed to be territorial in its application and does not Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit ess

Legal Analysis

Justice Holmes, writing for the Court, based the decision on two fundamental Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet

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Flash Summary

  • U.S. statutes, including the Sherman Act, are presumed to be territorial
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla

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