Foreign Corrupt Practices Act issues pop up, more than people realize I submit, in civil litigation. However, much of this civil litigation flies under the radar and/or may arise in arbitration proceedings meaning there is little transparency of the underlying issues. I have been a expert in several such cases.
These dynamics make this recent Sixth Circuit Court of Appeals decision involving Fiat Chrysler Automobiles International Operations LLC and its former Angolan distributor (Union Commercial Services Limited) all the more interesting.
As highlighted below, in connection with Union’s claim that Chrysler breached an agreement by violating the implied covenant of good faith and fair dealing as well as engaged in tortious interference of business relations, the Court held that a contractual clause requiring Union to cooperate with Chrsyler’s “efforts to comply” with the FCPA did not impose upon Chrylser the contractual obligation to comply with the FCPA.