Territoriality and Its Troubles
This chapter examines what the presumption against extraterritoriality means and how it operates. The presumption against extraterritoriality itself presumes a set of complicated rules about which features of a transnational case count: which features make a case territorial and within the scope of a federal statute because these features can be located within the United States or, if they cannot, make the case extraterritorial and outside the statute’s scope. The dependence of the presumption upon a network of other rules both complicates its operation and makes it a less than certain guide to statutory interpretation. The chapter then considers the justification for territorial allocation of government power generally, and addresses the question of whether any presumption about the territorial scope of statutes must await a new consensus on the appropriate rules of choice of law. It argues that the presumption against extraterritoriality requires a flexible interpretation that makes it more of a principle than a rule. From that premise, the chapter studies the choice between an ad hoc and a principled application of the presumption, both of which are exemplified in recent decisions.