By Ovunc Kutlu
NEW YORK (AA) - The U.S. Supreme Court on Monday unanimously favored Venezuela over an American drilling company in a dispute over the firm's oil rigs seized by the Latin American country.
Oklahoma-based Helmerich & Payne claimed that the government of Venezuela illegally seized 11 of its oil rigs in 2010. The U.S. Court of Appeals for the D.C. Circuit decided in 2015 that the company could sue Venezuela over the allegation.
In an 8-0 vote, however, the Supreme Court said in its decision that "The Court of Appeals did not decide (on the basis of the stipulated facts) that the plaintiffs’ allegations are sufficient to show their property was taken in violation of international law."
Government of Venezuela had argued that seizing the rigs does not violate international law, since they were owned by a subsidiary company of Helmerich & Payne in Venezuela.
The Supreme Court said a "more rigorous jurisdictional standard" could apply when it comes to a foreign sovereign nation against an American firm.
This "could cause friction with other nations, leading to reciprocal actions against this country," wrote Associate Justice Stephen Breyer, who delivered the opinion of the Court.
Newly-appointed Justice Neil Gorsuch did not take part in the consideration or decision of the case, the Supreme Court said.
Helmerich & Payne's stock price fell to as low as $58.99 a share on Wall Street after the decision, posting a 2.7 percent decline from the previous closing.
American automaker General Motors claimed on April 20 that Venezuelan authorities illegally seized its plant, assets, and vehicles in the country, leading the company to halt all operations in Venezuela.