In re 650 Fifth Avenue & Related Properties
881 F. Supp. 2d 533
S.D.N.Y.2012Background
- This action targets enforcement of money judgments against Iran, seeking turnover of assets including the 650 Fifth Avenue building.
- The building is currently titled in the names of the Alavi Foundation and the 650 Fifth Avenue Company (the Moving Defendants).
- Moving Defendants move to dismiss under Fed. R. Civ. P. 12(b)(1) and 12(b)(6) for lack of subject matter jurisdiction and failure to state a claim.
- Plaintiffs rely on the FSIA and TRIA, arguing that the Moving Defendants are Iran or its alter egos/organs and therefore not immune to execution.
- The Court relies on seized documents and the verified U.S. complaint affidavit to determine whether the Moving Defendants are Iran, alter egos, or organs, for jurisdiction and liability purposes.
- The Court ultimately denies the Moving Defendants’ dismissal motion, finding subject matter jurisdiction under the FSIA/Triumph and a stated claim under TRIA for turnover of assets.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Moving Defendants are Iran, alter egos, or organs under FSIA. | Greenbaum asserts Moving Defendants are Iran or its alter egos. | Moving Defendants contend they are not Iran, nor its alter egos, and hence lack jurisdiction. | Yes; they are Iran/alter egos/organs for FSIA purposes. |
| Whether the terrorism exception to FSIA/TRIA defeats immunity for asset turnover. | Plaintiffs rely on 1605A/TRIA to authorize execution of assets. | Defendants argue immunity applies absent FTRO exceptions. | Yes; TRIA/FSIA terrorism exception applies to defeat immunity. |
| Whether the court has subject matter jurisdiction and a stated claim under TRIA to compel turnover. | Verified U.S. complaint plus seized documents establish jurisdiction and turnover claim. | Defendants maintain lack of jurisdiction or failure to state a claim. | Yes; Court has jurisdiction and PLA state a claim. |
Key Cases Cited
- First Nat’l City Bank v. Banco Para El Comercio Exterior de Cuba, 462 U.S. 611 (1983) (presumption of independent status; piercing corporate form in instrumentality cases)
- Kalamazoo Spice Extraction Co. v. Provisional Military Gov’t of Socialist Ethiopia, 616 F. Supp. 660 (W.D. Mich. 1985) (alter ego/agency considerations; piercing the corporate veil in exceptional circumstances)
- Letelier v. The Republic of Chile, 748 F.2d 790 (2d Cir. 1984) (foreign state accountability; limits of separateness in FSIA contexts)
- Dole Food Co. v. Patrickson, 538 U.S. 468 (2003) (veil/piercing corporate form; distinguishing control from ownership)
- Gibbons v. Republic of Ireland, 532 F. Supp. 668 (D.D.C. 1982) (need for concerted action by government officials with instrumentality)