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Mexico urges US court to revive $10 billion lawsuit against gun makers

By Nate Raymond
       BOSTON, July 24 (Reuters) - The Mexican government on
Monday urged a U.S. appeals court to revive a $10 billion
lawsuit seeking to hold U.S. gun manufacturers responsible for
facilitating the trafficking of weapons to drug cartels across
the U.S.-Mexico border.
    A three-judge panel of the 1st U.S. Circuit Court of Appeals
in Boston questioned whether a lower-court judge wrongly
concluded that a U.S. law barred Mexico from suing Smith &
Wesson Brands  SWBI.O , Sturm, Ruger & Co  RGR.N  and others.
    That law, the federal Protection of Lawful Commerce in Arms
Act (PLCAA), provides the firearms industry broad protection
from lawsuits over their products' misuse.
    But Mexico's lawyers argued the law only bars lawsuits over
injuries that occur in the United States and does not shield the
seven manufacturers and one distributor it sued from liability
over the trafficking of guns to Mexican criminals.
    Steve Shadowen, a lawyer for Mexico, said allowing its case
to proceed in U.S. courts would enable Mexico to not only seek
damages but also a court order aimed at combating the 20,000
deaths a year he blamed on the companies' actions.
    "What we want is an injunction to make these defendants
start paying attention to their distribution systems," he said.
"And it's only U.S. courts that can provide that injunctive
relief."
    Mexico says over 500,000 guns are trafficked annually from
the United States into Mexico, of which more than 68% are made
by the companies it sued, which also include Beretta USA,
Barrett Firearms Manufacturing, Colt's Manufacturing Co and
Glock Inc.
    Noel Francisco, a lawyer for Smith & Wesson, argued Mexico's
lawsuit was devoid of allegations the gun manufacturers' gun
sales themselves did anything that would create an exception to
PLCAA's broad protections.
    "You have licensed manufacturers that sell to licensed
distributors that sell to licensed retailers that sell to
individuals who satisfy the requirements of federal law, but
some of them happen to be straw purchasers," he said.
    U.S. Circuit Judge William Kayatta said that while Mexico
had not alleged the gun makers directly violated any gun laws,
one of its core legal theories was that they aided and abetted
others who trafficked guns abroad, creating potential liability.
    "What's wrong with it?" Kayatta asked.
    A ruling is expected in the coming months.

 (Reporting by Nate Raymond in Boston; Editing by Bill Berkrot)
 ((Nate.Raymond@thomsonreuters.com and Twitter @nateraymond;
347-243-6917; Reuters Messaging:
nate.raymond.thomsonreuters.com@reuters.net))

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