International Law Outline


Timberlane Lumber v. Bank of America



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Timberlane Lumber v. Bank of America – 9th Cir. 1976 (366-68)

  1. Tries to refine the effects test – recognizes that “at some point the interests of the United States are too weak and the foreign harmony incentive for restraint too strong” to justify finding jurisdiction

  2. Tripartite analysis

    1. Some effect (actual or intended) on American foreign commerce

    2. must have effected some cognizable injury, and therefore, civil violation of antitrust laws

    3. whether US interests are sufficiently strong.

      1. This is where “direct and substantial” test has been confusing

      2. Multi-factor test: consider

        1. Degree of conflict with foreign law/policy

        2. Nationality of parites

        3. Locations of corp’s/PPB

        4. Extent to which enforcement is likely to achieve compliance

        5. Relative significance of effects on US as compared to other places

        6. Extent to which explicit PURPOSE to harm/affect US commerce

        7. Foreseeability of harm/affect US commerce

  3. Applying test – dismissed claims.


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