Criminal Liability -- 2006



Stolt-Nielsen S.A. v. United States   (U.S. Supreme Court)

Court power to scrutinize agreement not to prosecute cooperating company

The issue in this case is whether federal courts have the authority, under the Separation of Powers doctrine, to enjoin federal prosecutors from breaching a binding contractual obligation "not to bring any criminal prosecution" against a company and its executives. It is important for companies that give up their constitutional rights in return for immunity, particularly in the context of the Antitrust Division’s Corporate Leniency Policy. The lower court found that the company had complied with its agreement, yet the Court of Appeals said courts cannot interfere with prosecutorial discretion to indict.

The NAM joined with the Washington Legal Foundation in an amicus brief urging the Supreme Court to hear this case on appeal. On Oct. 30, the Court declined to hear this appeal.