Peterson v. Islamic Republic of Iran
2010 U.S. App. LEXIS 24709
| 9th Cir. | 2010Background
- Plaintiffs obtained a default judgment against Iran for $2,656,944,877 in D.C. district court, later registered in the Northern District of California.
- Plaintiffs sought to enforce the judgment by acquiring Iran’s rights to payment from CMA CGM, a French shipping company, arguing CMA CGM owes Iran for harbor and bunkering services.
- The district court raised, sua sponte, the issue of Iranian sovereign immunity from execution and denied the assignment motion under FSIA §§ 1609-1611.
- Questions centered on whether Iran’s right to payment from CMA CGM constitutes ‘property in the United States’ immune from attachment under FSIA § 1610(a)(7).
- California law was invoked to determine situs of an intangible right to payment for purposes of enforceability, with Philippine Export and Foreign Loan Guarantee Corp. v. Chuidian cited for situs rules.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Immunity from execution raised sua sponte | Iran must plead immunity as an affirmative defense. | FSIA allows sua sponte immunity determinations for execution. | Immunity from execution may be addressed sua sponte. |
| FSIA notice requirements for enforcement | Notice satisfied via mailed judgments and translations; substantial compliance. | Strict FSIA service requirements must be met for enforcement actions. | FSIA notice satisfied by substantial compliance; enforcement not barred by strict service shortcomings. |
| Whether Iran's rights to payment from CMA CGM are ‘property in the United States’ | Rights to payment located in the United States and subject to attachment. | Rights are not located in the United States; CMA CGM is in France. | Rights to payment are not property in the United States; immune from execution. |
| Situs of intangible debts for purposes of § 1610(a)(7) | Location determined by where debtor's assets are located; rights can be attached. | Situs tied to debtor location; CMA CGM debt is located in France. | Situs is the debtor’s location; debt owed by CMA CGM is in France, not the United States. |
Key Cases Cited
- Verlinden B.V. v. Cent. Bank of Nigeria, 461 U.S. 480 (1983) (recognizes the restrictive theory and FSIA framework for immunity)
- Letelier v. Republic of Chile, 748 F.2d 790 (2d Cir. 1984) (immunity and execution principles in attachment contexts)
- Wilmington Trust v. U.S. District Court, 934 F.2d 1026 (9th Cir. 1991) (courts originate requests for FSIA protection from foreign states; burden considerations)
- Philippine Export and Foreign Loan Guarantee Corp. v. Chuidian, 218 Cal.App.3d 1058 (Cal. App. 1990) (situs of debt obligations for enforcement against foreign states)
- Loomis v. Rogers, 254 F.2d 941 (D.C. Cir. 1958) (pre-FSIA immunity from execution and the formal suggestion tradition)