Exxon says Aceh torture lawsuit sets dangerous precedent: Report

Exxon Mobil Corp. warned that a U.S. judge's decision to allow villagers to file a lawsuit against the oil giant for alleged abuses by Indonesian troops in Aceh province could set a precedent for all American companies operating abroad, AP reported.

But the Irving, Texas-based company has not yet decided whether it will appeal the ruling, spokeswoman Susan Reeves said Wednesday in a telephone interview.

The International Labor Rights Fund filed a lawsuit in 2001 on behalf of 11 Acehnese villagers who said Exxon's Indonesian subsidiary allowed its facilities to be used by soldiers to torture locals and to commit other human rights abuses.

The hearings were postponed in 2002 after the State Department said the lawsuit could harm American interests, but U.S. District Judge Louis Oberdorfer ruled last week that the case could proceed.

"The lawsuit created the potential for any U.S. company operating overseas to be held vicariously liable for host government actions," Reeves said.

"Such action would risk interference with U.S. foreign relations and diplomacy." (*)