Estate of John Doe v. Islamic Republic of Iran
943 F. Supp. 2d 180
D.D.C.2013Background
- Embassy bombings in Beirut (1983) and the Embassy Annex (1984) caused numerous deaths and injuries to U.S. government personnel and foreign nationals.
- Plaintiffs seek damages under FSIA as amended by 2008 NDAA § 1083, with a single U.S. national and 58 foreign national embassy employees plus family members.
- Court previously held jurisdiction over Iran/MOIS and adopted Judge Facciola’s damages recommendations; damages now totaling over $8.4 billion.
- Magistrate Judge Facciola issued a 220-page Report & Recommendation; this Court adopts it in substantial part with adjustments on prejudgment interest, economic losses, pain-and-suffering, and punitive damages.
- Court approves prejudgment interest at the prime rate per year (not a decade-average), and rejects adding government benefits to economic loss calculations under collateral source rules.
- Punitive damages awarded total $300 million (down from $600 million) and are divided among all plaintiffs, including family members, under FSIA §1605A and related DC-law punitive-damages theories.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Prejudgment interest method and amount | Wolf’s damages should include interest; prime-rate per year best. | Forman supports annual prime-rate; conflict about method. | Yes; use prime rate by year; total multiplier supports award. |
| Economic losses adjustments | Include present-value losses; no offset for government benefits. | Exclude benefits; collateral-source rules apply. | Exclude government benefits; calculate without them. |
| Pain and suffering awards framework | Baseline $5M with upward departures for severe injuries. | Maintain consistency with prior awards and adjust downward where warranted. | Adopt $5M baseline for most; $7M for some; upward/downward adjustments as stated. |
| Punitive damages scope and amount | Award $300M per attack across all plaintiffs. | Total punitive damages for these cases should be limited; consider prior awards. | Total punitive damages set at $300M; distribute to all plaintiffs including family members. |
| Waiver and allocation of punitive damages | FSIA §1605A allows punitive damages; waiver extends to family members. | Punitive damages may be barred or limited by immunity provisions. | Punitive damages permitted; allocation to all plaintiffs, including families, under DC-law framework. |
Key Cases Cited
- Oldham v. Korean Air Lines Co., Ltd., 127 F.3d 43 (D.C. Cir. 1997) (premiums for prejudgment interest using annual prime rate)
- Forman v. Korean Air Lines Co., Ltd., 84 F.3d 446 (D.C. Cir. 1996) (prime-rate-based prejudgment interest preferred over T-bill rate)
- Bradshaw v. United States, 443 F.2d 759 (D.C. Cir. 1971) (collateral source rule applies to benefits not chargeable to tortfeasor)
- Amoco Cadiz Off Coast of France on March 16, 1978, 954 F.2d 1279 (7th Cir. 1992) (uses year-by-year prime rate for prejudgment interest)