International Rights Advocates v. Apple, Microsoft, Dell, Tesla

International Rights Advocates, Inc. filed an injunctive relief and damages class-action lawsuit against Apple, Microsoft, Dell, and Tesla in December 2019.[1] The plaintiff was representing fourteen Congolese parents and children seeking relief and damage fees for these companies aiding and abetting the use of young children in the Democratic Republic of Congo (DRC) cobalt mining industry.[2] The plaintiff also pursued relief on the common law basis of negligent supervision, enrichment, and intentional infliction of emotional distress.[1] In November 2021, a federal judge dismissed the suit, ruling, among other things, that there was no causal relationship between the companies and the individuals' injuries.[3] In March 2024, the Court of Appeals for the District of Columbia Circuit ruled that the plaintiffs had standing for the damages claims, but affirmed the dismissal because of failure to state a claim.

Background

Before the area became established as the Democratic Republic of the Congo, it had a significant population which was seen as fertile ground utilized by slave traders.[1] After the 19th century, industrialization began to boom, bringing in many who wanted to extract the natural resources in the area. In the late 1800s, King Leopold II of Belgium claimed the area as personal property and levied forced labor through quotas. Under King Leopold, the Congo faced a reign of terror which can be seen through many Congo memoirs left by civilians during his rule. From ivory to the rubber craze in the 1900s, any noncompliant civilian was punished. After its independence in 1960, The Democratic Republic of Congo was presented with leaders such as Mobutu Sese Seko (1949–1965), Laurent-Deisre Kabila (1997–2001), and Joseph Kabila (2001–2019) who all left the DRC in extremely impoverished conditions over time.[4]

Case background

The IRA had a July 2021 hearing in which all the companies were filing a motion to dismiss the case. Microsoft's lawyer explicitly stated and pronounced that they do not have a relationship with the suppliers to be directly responsible for what happens in the cobalt mines in the DRC. Essentially, the defense for all the tech companies is that they "buy cobalt"[8] and do not have direct control of what happens in the mines, despite having policies that discuss an opposition to child labor. The IRA stressed strong opinions about the tech companies child labor policies saying that they are essentially lying and covering their bases by saying they have a policy in place.

The cases of the plaintiffs all involve cobalt mining incidents that caused great harm or even death as a minor. The plaintiffs are mostly between 14 and 17 years of age and have all chosen to remain anonymous for protection from the DRC's government. They are listed as Jane Doe 1, John Doe 1, John Doe 2, Jenna Doe 3, James Doe 4, John Doe 5, Jenna Doe 6, Jane Doe 2, Jenna Doe 7, Jenna Doe 8, John Doe 9, Jenna Doe 10, Jenna Doe 11, Jane Doe 3, John Doe 12, and John Doe 13. Of these cases, 13 of the deaths and injuries involve collapses. One of the worst collapses listed is of a chamber ceiling collapsing and killing 35 miners, most of which were 17 years of age or younger. The anonymous plaintiff, who was 17 years old at the time, was one of the only survivors, but came away with two shattered legs. Another of the anonymous plaintiffs became paralyzed at 14  after falling into a tunnel while working as a mule at a mine under Glencore. Glencore sells its cobalt to a processor who then supplies the Tech Companies listed in the lawsuit. One anonymous plaintiff was recruited by the DRC Presidential Guard along with other minors to mine cobalt and give it to the Guard for $1.20 a day. After the plaintiff proposed cutting out the Presidential Guard and selling directly to the buyers, he was shot in the back and has been weakened from the wound.

DRC resources

The DRC is rich in natural resources such as copper, tin, tungsten, tantalum, gold, and most importantly, cobalt. About seventy-five percent (75%) of the cobalt supply globally comes from the Katanga "copperbelt." This belt is a part of a world-class cobalt and copper deposit that stretches from northeastern Zambia all the way to the southeastern Democratic Republic of Congo.[10] Cobalt is a crucial component in rechargeable lithium-ion batteries, which are immensely valuable to companies like Tesla and Apple, which are acclaimed in technology and electronics. In 2016, Amnesty International reported that large-scale mining and processing companies purportedly obtain around 75% of the cobalt mined in the Congo's mineral-rich Katanga and Lualaba provinces.[11] However, these enterprises usually buy their minerals from artisanal mines, adding complexity to the supply chain. This report indicates that child labor is part of the global supply chain because children mine and sell to adult miners, who then sell to licensed buying houses, who sell to large companies. According to the case filed by the International Rights Advocates Group, all companies accused in the lawsuit were knowingly profiting and providing provisions to the mining system in DRC.[1]

Venue and jurisdiction

The Plaintiffs are bringing their case to the United States Judicial District because DRC contains no law allowing them to seek reparation against cobalt consumers functioning outside of the DRC. The parties on the side of the Plaintiff would be compromising their safety due to the governmental conditions present in the Democratic Republic of Congo,[1] due to the human rights forum provided under the 2013 Trafficking Victims Protection Reauthorization Act.[12] Due to the damages claimed against the Plaintiff in the United States, they cannot contest their claims in the DRC.

Alleged violations

The 2016 Amnesty International report shows that children work in Congo mines and are especially vulnerable to harsh working circumstances, such as carrying 20-40 kilogram sacks of cobalt for 10–12 hours per day on awful roads.[11] This report also states that children are exposed to sexual harassment and abuse. In 2018, a sixteen-year-old boy was involved in an accident caused by a tunnel collapse, which left his left leg paralyzed. Another tunnel accident occurred in 2017 where 17 dead bodies were found, and others were unable to be retrieved. The plaintiff claimed that Tesla, Apple, Microsoft, Dell, and Google's inability to provide resources and regulations for safe mining activities makes them equally responsible for these human rights violations. A major allegation was that these corporations were aware of the conditions of workers at the mines the cobalt they use came.

Defendants' responses

After the lawsuit was filed against these companies, the respondents moved forward by stating their company's ethics and code of conduct. Apple declined to respond or comment on the lawsuit allegations. Apple also told CNN Business that the company "remains deeply committed to the responsible sourcing of materials into our products." Apple also shared its full list of cobalt refiners and stated that they do not purchase the cobalt from supply chains that do not meet its standards. They also mentioned the refiners they removed from their chains in 2019. Dell stated that they are "committed to the responsible sourcing of minerals" and upholding the human rights of workers. Dell also claimed that they have "never knowingly sourced operations using any form of involuntary labor, fraudulent recruiting practices or child labor." Along with this statement, they claim to have eliminated supply chains if any transgression has been seen. Google has responded by saying that they have been working with industry and supply groups to eliminate the problem. Microsoft and Tesla did not comment on the allegations presented by the International Rights Advocates Group. The defendants also claim to have "voluntary programs" to put a stop to the utilization of forced and child labor in their supply chains.[13]

Updates

The U.S. Court of Appeals for the District of Columbia Circuit dismissed the child labor case on Tuesday, March 5, 2024, against the tech companies Apple, Tesla, Google, Microsoft, and Dell and refused to hold them accountable for child labor being used in cobalt mining in the Democratic Republic of Congo (DRC).[14] The International Rights Advocates (IRA) stated that "This ruling is a setback for our efforts to combat child labor within the tech industry's supply chains."[8] The IRA however, has stated to remain committed to making sure there is justice for families who are impacted by this type of practice.

In the lawsuit that took place, Congolese children were the ones to work in the cobalt mines. They were working essentially to be away from poverty and starvation. The children were also under threats to be "…barred from working elsewhere if they ever thought of quitting".[14] The biggest case and argument was that the tech companies "knew" about the conditions the children were being subjected to and continued to buy cobalt from them despite the evidence that was presented. Because of this, it was also argued that it was being pushed further by the tech companies.

The U.S. Court of Appeals for the District of Columbia Circuit supported the lower court's decision in the matter. They explained that to prove that these tech companies participated in the venture, there had to be proof that there was an engagement in forced labor in the metals supply chain.

Lawsuits in the Congo

Chinese mining group CMOC has agreed to settle with the Congo state-controlled mining company Gécamines for $800M between 2023 and 2028. The disagreement began when CMOC's Tenke Fungurume mine was ordered to halt exports when the Congolese mining company Gécamines realized CMOC had been lying about its mineral reserves and owed $7.6 billion in royalties and interest to the Congo. CMOC will pay a minimum of $1.2 billion in dividends to settle the dispute over royalties at the Tenke Fungurume Mining (TFM) operation.

According to Mining Technology, "CMOC said in a stock exchange filing: 'Gécamines will be entitled to 20% of the total value of the project's subcontracting and the right to acquire a volume of production proportional to its 20% stake in TFM on market terms and in compliance with Congolese laws."

Barron's was quoted as saying, "In the future, Gecamines will be entitled to 20% of the total value of the project's subcontracting and the right to acquire a volume of production proportional to its 20% stake in TFM on market terms and in compliance with Congolese laws," CMOC said."

Barron's also said that "Tenke Fungurume, the world's second-largest cobalt mine, produced about 20,000 tonnes of copper and 1,500 tonnes of cobalt a month through 2022, according to company figures."

Siddharth Kara, author of Cobalt Red: How the Blood of the Congo Powers our Lives, said in his book that China owns 15 of the 19 copper-cobalt mining concessions in the DRC.[15]