Foreign firms face litigation in Colombia

Subject

Rising litigation against foreign firms.

Significance

Prosecutors, civil lawyers and activists are increasingly seeking to bring civil and criminal proceedings against foreign firms for their alleged involvement in historic wrongdoing in Colombia. On May 25, a stalled legal process against US coal-mining firm Drummond restarted with the arrest of one of the company's local executives on charges of complicity in paramilitary violence in the early 2000s. Other firms, most notably BP, are facing civil claims outside the country for similar allegations and dating from around the same period.

Impacts

• Firms with a commercial presence in remote areas, where illegal armed groups operate, face higher risk of investigation and litigation.
• Pioneering civil cases currently being heard in the United Kingdom, if successful, could give rise to new claims against firms in Colombia.
• Media interest increases the risk of reputational damage, and even consumer boycotts, for firms subject to criminal or civil claims.