On October 31st, a group of fishermen from a rural province in India got up in front of the U.S. Supreme Court to argue the case of Jam v. International Finance Corp. This wasn’t some elaborate Halloween costume or prank. No, the fishermen and their lawyers had been preparing for their day in court for almost 8 years.
But how they end up in the United States Supreme Court?
The story starts in Gujarat, India. Jam is the last name of Budha Ismail Jam, who until recently was a fisherman in his hometown of Tragadi. The harbor, or bander as it’s called in Gujurati, had been a lifeline to his community for generations, providing them with food and products to sell at the market. But everything changed when a coal-fire power plant was built in the harbor.
A map of India with the Tata Mundra Ultra Mega Power Plant marked, and a satellite image of the plant. Both images courtesy of Google Maps.
In 2008, the International Finance Corporation (IFC), the branch of the World Bank Group that provides loans to private companies to undertake development projects, approved a $450 million loan to an Indian company to build the Tata Mundra Ultra Mega Power Plant. The IFC knew that the project was likely to hurt communities like Jam’s, and decided to proceed anyway.
Suddenly, a new fence surrounded their ancestral fishing grounds, increasing the walking distance from Tragadi to the harbor by 3.8km. The plant’s open cooling system was dumping warmer water into the bander, which killed lots of fish. Not only were the livelihoods of fisherpeople jeopardized, but Jam’s friend and another plaintiff in this case, Ranubha Jadeja, reported that all of the fresh water wells in his village became salty. This power plant that was supposed to provide electricity and jobs to help the local people was instead a source of harm.
The Tata Mundra Ultra Mega Power Plant in Gujurat, India. Photo courtesy of the Hindu Business Line.
The IFC knows its big projects can cause trouble for small players like Jam. It even has a mechanism in place to hear the appeals of locals who think their rights have been infringed. This so-called ‘independent complaints mechanism’ allows people like Jam to ask for mediation and reparations.
Jam and his neighbors asked the IFC’s mechanism for help with the problems they were facing with the coal plant. They filed a complaint alleging that power plant had caused deterioration of water quality and fish populations, blocked access to fishing and drying sites, forced displacement of fishermen, community health impacts, and destruction of natural habitats. The review panel found that the IFC had violated its own rules on protecting people and the environment. Yet, the IFC ignored these findings and allowed the project to continue.
In 2015, legal experts from EarthRights International filed suit on behalf of Jam and his community in federal court in Washington D.C. From the very start, this legal suit was an uphill battle.
Because many multilateral development banks are headquartered in the United States, including the IFC, they are protected under the International Organizations Immunity Act. This U.S. law gives international organizations absolute immunity, meaning they are protected from all lawsuits in US courts. Not even foreign governments enjoy this much privilege—they can be taken to court when the lawsuit involves their commercial activity in the U.S.
As long as the current form of this Act remains on the books, Jam and his community couldn’t sue the IFC for anything in U.S courts. The IFC wants to keep being able to push Jam and other communities around without letting the little guy speak up. During the court case, the IFC argued that it should have more immunity than sovereign states. Even the Trump administration, which has a less than stellar record on social and environmental issues, is standing on Jam’s side.
A fishing boat in illuminated by the glow of the Tata Mundra Ultra Mega Power Plant. Photo courtesy of Sami Siva, ICIJ.
In this David versus Goliath case, Jam is challenging the IFC’s ability to hold itself above the law. Despite the enormous odds against them, Jam and EarthRights International didn’t back down. They pursued their case all the way up to the nation’s highest seat of justice: the Supreme Court.
The legal reasoning might be obscure, but the importance of the case is clear-cut. The Tata Mundra Ultra Mega Power Plant hurt Jam and his community. When the IFC didn’t follow the recommendations from its own complaint mechanism, there was nowhere else Jam could go for help. If the Supreme Court sides with Jam, he’ll receive the assistance he needs to get his livelihood back through processes in U.S. courts.
The IFC and other development banks have been allowed to act with impunity for too long. Donate to EarthRights International to help communities around the world get justice.
