The US Court of Appeals reversed a ruling to pay $1.68 billion to the Central Bank of Iran (CBI) in a case brought by the families of US servicemen killed in the 1983 Marine barracks bombing in Beirut.
Terror victims are seeking judgements through US courts against Iran and other states designated as sponsors of terrorism. The decision came before President-elect Donald Trump is set to return to the White House. He is expected to impose tough sanctions against Iran’s central bank and oil sector in his first days in office.
Manhattan’s 2nd US Circuit Court of Appeals unanimously ruled that a lower court should have considered state law issues before ruling against CBI and Luxembourg-based Clearstream Banking, a subsidiary of Deutsche Boerse.
The three justices rejected claims that a 2019 federal law, designed to make it easier to seize Iranian assets outside the United States, stripped CBI of sovereign immunity. Circuit Judge Robert Sack stated:
The law neither abrogates Bank Markazi’s [Central] jurisdictional immunity nor provides an independent grant of subject matter jurisdiction.
However, the CBI claimed immunity under the Foreign Sovereign Immunities Act. The legislation protects foreign governments from US court liability. The case has now been returned to US District Judge Loretta Preska to address state law issues in the 11-year-old dispute.
The case arose from the plaintiffs’ attempts to hold Iran liable for allegedly providing material support for the 23 October 1983 terrorist attack that killed 241 US servicemen in Beirut.
The plaintiffs allege that they have more than $4 billion in unpaid judgments against Iran. The case represents one of many challenges faced by victims of terrorism seeking to obtain judgments against Iran and other states designated by the US as sponsors of terrorism through US courts.
