Court Weighs Forced Labor Suit Against Tool Maker
A Seventh Circuit panel heard arguments on whether a former Chinese political prisoner can sue Milwaukee Tool Corporation under federal law.
Updated on Nov. 4, 2026 in Sex Crimes
A three-judge Seventh Circuit panel heard oral arguments on Wednesday in a lawsuit brought by a former political prisoner in China against Milwaukee Tool Corporation. The plaintiff alleges the company exploited prisoners in a manufacturing facility to produce gloves.
Why it matters
The case tests whether the Trafficking Victims Protection Act can be enforced through civil lawsuits for conduct occurring outside the United States. A lower court ruled the statute does not apply extraterritorially in civil enforcement, a question the appeals court will now weigh.
The case is pending before the Seventh Circuit, with oral arguments held Wednesday before Chief Judge Michael Brennan and Judges Joshua Kolar and Kenneth Ripple. No ruling date has been set, and the plaintiff's claim survives only if the appeals court reverses the lower court's extraterritoriality holding.
The players
Milwaukee Tool Corporation
A Wisconsin-based manufacturer of power tools and accessories, named as the defendant in the forced labor suit.
Michael Brennan
Chief U.S. Circuit Judge of the Seventh Circuit, serving on the three-judge panel hearing the appeal.
The details
The plaintiff, a former political prisoner in a Chinese prison, filed suit in 2024 under subsection 1589(b) of the Trafficking Victims Protection Act. Attorney Jennifer Bennett argued the suit is a domestic application of the statute, while David Horniak, representing Milwaukee Tool, argued Congress did not clearly extend it to civil actions.
Timeline
2000: Trafficking Victims Protection Act enacted
2019: Fourth Circuit ruled for the plaintiff in a Yemen embassy housekeeper case
2024: Plaintiff filed the lawsuit against Milwaukee Tool Corporation
November 4, 2026: Seventh Circuit oral arguments held in Chicago
Legal Context
The Trafficking Victims Protection Act of 2000 created federal civil and criminal remedies against forced labor, but its extraterritorial reach has been contested in court. The Fourth Circuit's 2019 ruling for a plaintiff in a Yemen embassy housekeeper case shows courts have allowed such suits in some circumstances, making the Seventh Circuit's decision a meaningful test of the statute's limits.
The ruling could determine whether victims of forced labor abroad can sue U.S. companies in American courts, affecting firms that source goods from overseas facilities. Companies with international supply chains may face new civil exposure depending on how the Seventh Circuit resolves the extraterritoriality question.
The takeaway
Whether a forced labor claim can reach conduct overseas depends on how appellate courts read the statute's silence on civil enforcement. Companies and readers following trafficking law should watch how the Seventh Circuit reconciles that text with principles of international comity.
Further reading
For more on federal trafficking law and how courts handle these claims, explore Sex Crimes coverage.
Source note: This article includes information reported by Court House News Service.
