By Nate Raymond
BOSTON, Feb 9 (Reuters) - U.S. gun manufacturers plan to
ask the U.S. Supreme Court to hear their bid to escape Mexico's
$10 billion lawsuit seeking to hold them responsible for
facilitating the trafficking of weapons to drug cartels across
the U.S.-Mexico border.
The planned appeal was disclosed during a virtual court
hearing on Friday by a lawyer for Smith & Wesson Brands SWBI.O
after the Boston-based 1st U.S. Circuit Court of Appeals last
month overturned a judge's decision dismissing the case.
Mexico alleges in the lawsuit, filed in 2021, that the
companies undermined its strict gun laws by designing, marketing
and distributing military-style assault weapons in ways they
knew would arm drug cartels, fueling murders, extortions and
kidnappings in the country.
Mexico says over 500,000 guns are trafficked annually from
the U.S. into Mexico, of which more than 68% are made by the
eight companies it sued, which also include Sturm, Ruger & Co
RGR.N , Beretta USA, Barrett Firearms Manufacturing, Colt's
Manufacturing Co and Glock Inc.
Mexico said the smuggling has contributed to high rates of
gun-related deaths, declining investment and economic activity
and a need for it to spend more on law enforcement and public
safety.
The companies deny wrongdoing.
Andrew Lelling, Smith & Wesson's lawyer, said at Friday's
hearing there was a "reasonably good chance" the Supreme Court
would agree to hear its appeal, and he asked U.S. District Judge
Dennis Saylor to put the case on hold until the justices act on
the petition.
He said the appeal would focus on whether Mexico's claims
are barred by a federal law, the Protection of Lawful Commerce
in Arms Act (PLCAA), which gives gun manufacturers broad
protection from lawsuits over the misuse of their products.
"This case involves a statute that is specifically designed
to allow this specific set of defendants to avoid litigation
costs if the case at issue falls within ambit of statute," he
said. "That very question is still the one at issue."
The 1st Circuit ruled on Jan. 22 that while PLCAA can be
applied to lawsuits by foreign governments, Mexico's lawsuit
"plausibly alleges a type of claim that is statutorily exempt
from the PLCAA's general prohibition."
The court said that was because the law was only designed to
protect lawful firearms-related commerce, yet Mexico had accused
the companies of aiding and abetting illegal gun sales by
facilitating the trafficking of firearms into the country.
Saylor on Friday said he had "some reservations" about
putting the case fully on hold pending an appeal to the Supreme
Court. He made no ruling, though, and said he would decide what
to do at a March 12 hearing.
Mexico's U.S. lawyer, Steve Shadowen, said it was "eager to
get started on merits of the case just as soon as we properly
can."
(Reporting by Nate Raymond in Boston, Editing by Alexia
Garamfalvi and Alistair Bell)
((Nate.Raymond@thomsonreuters.com and Twitter @nateraymond;
347-243-6917; Reuters Messaging:
nate.raymond.thomsonreuters.com@reuters.net))