O'Brien v. Islamic Republic of Iran
2012 U.S. Dist. LEXIS 42091
| D.D.C. | 2012Background
- 1983 bombing of the U.S. Marine barracks in Beirut killed 241 U.S. service members and injured others, including plaintiffs Jeffrey O’Brien and Daniel Lane Gaffney.
- Plaintiffs, joined by family members, sue the Islamic Republic of Iran under the FSIA state-sponsored terrorism exception codified at 28 U.S.C. § 1605A (NDAA 2008).
- On July 2, 2010, this Court adopted findings of fact and conclusions of law in Peterson v. Iran and entered judgment for plaintiffs on liability; damages were referred to a special master.
- Damages framework adopted from prior D.C. Circuit fidelity: compensatory (pain and suffering, economic losses), solatium for family emotional injury, and punitive damages; framework relies on Valore, Heiser, Bland, and related rulings.
- Special master recommendations for damages were adopted, with adjustments to maintain proportionality relative to the Heiser/Bland framework; the final awards are set in an Order and Judgment.
- Court awards total: $10,050,000 in compensatory damages and $34,572,000 in punitive damages, for a total of $44,622,000; miscellaneous issues concerning Margaret O’Brien’s estate are resolved against vacatur.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| What damages framework applies under §1605A? | Damages may follow the established framework from Peterson II/Valore. | Court should adhere to prior/varying damages methodology as appropriate to this case. | Damages framework adopted; final awards align with Peterson II/Valore guidance. |
| How should pain and suffering be calculated for survivors/injured? | Baseline $5 million with upward/downward adjustments for severity; align with prior awards. | Use consistent, case-specific adjustments per existing rulings. | Court adopts the Payne-and-suffering framework and approves special master’s awards with necessary adjustments. |
| How should solatium awards be set for family members? | Family awards follow Heiser; higher for spouses, lower for parents/siblings, with proportional reductions for injuries to loved ones. | Maintain proportional, rule-based approach to solatium per Bland/Heiser framework. | Solatium awards adopted with adjustments: parents increased to $850,000; siblings and other relatives adjusted; Peter Gaffney excluded due to estrangement; overall framework maintained. |
| What punitive damages should be awarded and how computed? | Punitive damages should reflect deterrence while avoiding crippling the defendant; use established ratio from earlier Beirut cases. | Apply ratio-based method consistently with prior judgments; avoid excess awards. | Punitive damages set using $3.44 ratio to compensatory damages, totaling $34,572,000. |
| Should the motion to vacate regarding Margaret O’Brien be granted? | Vacatur should be considered; death of Margaret O’Brien may affect standing. | No vacatur; estate already represented elsewhere; delay unjustified. | Motion to vacate denied. |
Key Cases Cited
- Valore v. Islamic Republic of Iran, 700 F.Supp.2d 52 (D.D.C. 2010) (damages framework for Beirut bombing cases; baseline and ranges for pain and suffering)
- Peterson v. Islamic Republic of Iran (Peterson II), 515 F.Supp.2d 25 (D.D.C. 2007) (adopted damages framework applying to multiple plaintiffs)
- Heiser v. Islamic Republic of Iran, 466 F.Supp.2d 229 (D.D.C. 2006) (framework for solatium awards by relationship to deceased victim)
- Bland v. Islamic Republic of Iran, 831 F.Supp.2d 150 (D.D.C. 2011) (proportional adjustments to solatium when relating to injured serviceman)
- Oveissi v. Islamic Republic of Iran, 768 F.Supp.2d 16 (D.D.C. 2011) (modifications to Heiser framework for distress in non-death contexts)
- Murphy v. Islamic Republic of Iran, 740 F.Supp.2d 51 (D.D.C. 2010) (ratio-based punitive damages tied to prior awards; deterrence concern)
- Peterson v. Islamic Republic of Iran (Peterson II) [repeated citation], 515 F.Supp.2d 25 (D.D.C. 2007) (see above)