Is the answer to all your COVID-19 troubles to sue China for damages?  If so, you may be in luck.  You may also have to stand in line behind several plaintiffs who have already initiated lawsuits against China.

1.     Another Brick in the Wall

In April 2020, lawsuits were filed in California, Nevada, and Missouri against the People’s Republic of China and other Chinese governmental and quasi-governmental entities related to COVID-19. The lawsuits filed in California and Nevada are both proposed class action lawsuits while the lawsuit in Missouri was filed by the State of Missouri. The plaintiffs in these lawsuits seek to recover damages that were sustained as a result of the coronavirus pandemic and generally allege that China mishandled and mismanaged the response to the virus and engaged in a cover-up of the pandemic in China.

One great wall for these plaintiffs to climb is a federal statute that prevents suing foreign governments in US courts except in limited circumstances.

2.    Is There Anybody Out There?

In July 2020, Senator Martha McSally introduced a bill in the United States Senate, cosponsored by senators from Missouri, Tennessee, Arkansas, North Carolina, South Carolina, South Dakota, and West Virginia (“Bill”), to create another exception to the federal statute.  The Bill would allow suits against “certain foreign states”, namely China, for victims of the novel coronavirus in the United States.

And, of course, our Congresspersons and their aides, who never tire of coming up with clever acronyms for their bills, have not failed us here.  The Bill is called the “Civil Justice for Victims of China-Originated Viral Infections Diseases Act” or, yes, “Civil Justice for Victims of COVID Act” for short. COVID is no longer just a virus, but also a bill.

3.    Comfortably Numb

The Bill specifically creates a cause of action for any citizen or resident of the United States who was injured in his or her person, property, or business by reason of any “reckless” act or omission of a foreign state or its officials, employees, or agents that caused or substantially contributed to the COVID-19 global pandemic. Any State may assert the cause of action on behalf of itself or its citizens and residents. A plaintiff may assert a claim for up to 20 years after the cause of action accrues.

If successful on its claim, the plaintiff would be able to recover three times the damages he or she sustained and the costs of the suit, including attorney’s fees. The Bill would also allow attachment of property the foreign state owns and uses for commercial activity in the United States.

The Bill, if made into law, seems tailor-made to the factual claims asserted in the lawsuits filed in California, Nevada, and Missouri. The lawsuits have not progressed since their initial filing in April. In fact, the docket shows that the California class action suit was voluntarily dismissed by the plaintiffs. But, with 20 years to sue China, what’s the hurry?

Though admittedly our firm has little experience in suing China, we have a great deal of experience in interpreting legal rights and statutes.  The attorneys in our Austin and Dallas offices are available to answer any questions you may have.

Legal Disclaimers

This blog is made available by Gerstle Snelson, LLP for educational purposes and to provide general information about the law, only.  Neither this document nor the information contained in it is intended to constitute legal advice on any specific matter or of a general nature.  Use of the blog does not create an attorney-client relationship with Gerstle Snelson, LLP where one does not already exist with the firm.  This blog should not be used a substitute for competent legal advice from a licensed attorney.

©Gerstle Snelson, LLP 2020.  All rights reserved.  Any unauthorized reprint or use of this material is prohibited.  No part of this blog may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage or retrieval system without the express written permission of Gerstle Snelson, LLP.