Divestment Upheld in First Full Legal Challenge
by Beatta Klein, Interfaith Center on Corporate Responsibility
New York, New York, United States
Interfaith Center on Corporate Responsibility
This article reports on the first major court challenge of a city divestment policy on South Africa. The Maryland Circuit Court upheld Baltimore’s 1986 ordinance in a case brought by the trustees of three public employee retirement funds. The judge found that the costs of divestment were so minimal that they did not impair the performance of the fund. He also found that the federal Anti-Apartheid Act did not pre-empt stronger policies adopted by cities and states. Also, the finding included that the ordinance did not violate the Interstate Commerce Clause or the Foreign Commerce Act and that it did not intrude on the federal government’s power to establish foreign policy. [Note: The article is from The Corporate Examiner (Vol. 16, No. 5).]
Used by permission of the Interfaith Center on Corporate Responsibility.
Collection: Private collection of David Wiley and Christine Root