Court Revives Rendition Lawsuit Against Boeing Unit

Business Law

A federal appeals court Tuesday revived a lawsuit alleging that a unit of Boeing Co. (BA) helped the Central Intelligence Agency seize terrorism suspects abroad and secretly transfer them to other countries for interrogation.

The ruling reinstates allegations by five men who claim that U.S. operatives - with support from Jeppesen Dataplan Inc., a Boeing unit - abducted them and sent them to other countries where they were tortured. They allege that Jeppesen provided critical flight planning and logistical support to the CIA's "extraordinary rendition" program. The men are seeking unspecified monetary damages from the company.

The Bush administration had intervened on behalf of Jeppesen and warned that allowing the lawsuit to go forward could threaten national security. The Obama administration has made the same arguments.

A federal trial judge dismissed the case last year, ruling that it could not proceed because the very subject matter of the lawsuit was a state secret. But on Tuesday, the 9th U.S. Circuit Court of Appeals in San Francisco said the trial judge was wrong to dismiss the case at such an early stage in the proceedings.

"According to the government's theory, the judiciary should effectively cordon off all secret government actions from judicial scrutiny, immunizing the CIA and its partners from the demands and limits of the law," 9th Circuit Judge Michael Daly Hawkins wrote for a unanimous three-judge panel.

Though it revived the lawsuit, the appeals court said the government could assert a state-secrets privilege to protect specific pieces of secret evidence in the case. The court sent the case back to the trial judge for further proceedings.

A Jeppesen spokesman said the company was reviewing the ruling and had no comment. The U.S. Justice Department also said it was reviewing the decision.

The American Civil Liberties Union, which is representing the plaintiffs, called the ruling historic.

"Our clients, who are among the hundreds of victims of torture under the Bush administration, have waited for years just to get a foot in the courthouse door," ACLU attorney Ben Wizner said. "Now, at long last, they will have their day in court."

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