Policy Recap 16: Court dismisses Mexico’s lawsuit against U.S. gun manufacturers

SCOTUS

Laboratory Corp. of America Holdings v. Davis
In a 6–3 decision, the Court held that employers may include mandatory arbitration clauses in employment contracts that require individual arbitration of wage disputes, even where state law allows broader group claims. The majority, led by Chief Justice Roberts, found that the Federal Arbitration Act preempts conflicting state labor protections. Justice Sotomayor dissented, warning that the ruling undermines workers’ access to collective redress.

Ames v. Ohio Department of Youth Services
The Supreme Court ruled 5–4 that public employers are not required to accommodate off-duty religious observances if doing so creates more than a minimal burden. Writing for the majority, Justice Kavanaugh emphasized the balance between workplace efficiency and individual rights. Justice Jackson’s dissent argued the decision weakens Title VII protections and gives too much discretion to state employers.

Smith & Wesson Brands, Inc. v. Estados Unidos Mexicanos
In a 6–2 decision, the Court dismissed Mexico’s lawsuit against U.S. gun manufacturers, holding that the Protection of Lawful Commerce in Arms Act shields them from liability for violence committed abroad with their products. Justice Kagan, writing for the majority, emphasized the Act’s extraterritorial limitations. Justices Sotomayor and Jackson dissented, citing the companies’ alleged knowing facilitation of trafficking.

Catholic Charities Bureau, Inc. v. Wisconsin Labor and Industry Review Commission
In a 5–4 ruling, the Court sided with Catholic Charities, finding that the Wisconsin agency improperly applied employment laws to religious nonprofits. Justice Alito’s opinion emphasized First Amendment protections for religious institutions’ internal governance. The dissent, by Justice Kagan, warned the ruling could allow faith-based employers to circumvent labor standards.

CC/Devas (Mauritius) Ltd. v. Antrix Corp
The Supreme Court unanimously held that U.S. courts may enforce international arbitration awards against foreign sovereign entities when commercial activity is involved. Justice Barrett wrote the opinion, affirming that Antrix’s refusal to honor the Devas award constituted a waiver of sovereign immunity under the FSIA. The ruling reinforces U.S. courts’ role in upholding international investment arbitration.

BLOM Bank SAL v. Honickman
In a 6–3 decision, the Court ruled that victims of terrorism cannot sue foreign banks for secondary liability under the Anti-Terrorism Act without clear evidence of direct support to terrorist acts. Justice Gorsuch’s majority opinion stated that proximity and intent are critical. Justice Sotomayor dissented, arguing the decision narrows accountability for financial enablers of terrorism.

Executive Orders

No new executive orders.

US Congress

No new laws passed by congress.