James OWENS, et al., Plaintiffs, v. REPUBLIC OF SUDAN, et al., Defendants. Rizwan Khaliq, et al., Plaintiffs, v. Republic of Sudan, et al., Defendants.
Civil Action No. 01-2244 (JDB), Civil Action No. 10-356 (JDB)
United States District Court, District of Columbia.
Signed 10/28/2015
See also 33 F.Supp.3d 29.
Asim A. Ghafoor, Law Office of Asim Ghafoor, Christopher M. Curran, Nicole Erb, Claire Angela Delelle, White & Case, LLP, Washington, DC, for Defendants.
MEMORANDUM OPINION
JOHN D. BATES, United States District Judge
Plaintiffs in these two cases are victims and family members of victims of the 1998 terrorist bombings of two U.S. embassies in Africa. Having obtained default judgments against Sudan and Iran for their roles in those bombings, they now wish to begin enforcing those judgments. In doing so, they must comply with rules for attaching and executing on the property of a foreign state contained in the Foreign Sovereign Immunities Act (“FSIA“),
BACKGROUND
Plaintiffs in these two cases won final judgments that total more than half a billion dollars against Iran and Sudan in March and April 2014.1 See Apr. 11, 2014 Order, Owens [ECF No. 305]; Mar. 28, 2014 Order, Khaliq [ECF No. 40]. Plaintiffs then began the arduous process of serving notice of the default judgments on the defendants according to the rules of
Plaintiffs have now renewed their motions and supplied additional evidence of
Never having appeared in either of these cases, Iran has filed no response. Sudan, on the other hand, has recently begun participating in these (and related) cases and opposes plaintiffs’ requests. See Sudan‘s Opp‘n, Owens [ECF No. 383]. Sudan does not quarrel with plaintiffs’ provision of notice, but contends that a reasonable period of time has not elapsed. At a minimum, Sudan argues, the Court should wait until it resolves Sudan‘s pending motions to vacate the default judgments, see, e.g., Mot. to Vacate, Owens [ECF No. 362], and ideally should interpret
After the Court received the parties’ initial filings, it requested a round of supplemental briefing. See Order for Supp. Briefing, Owens [ECF No. 385]. The Court noted that in a pair of recent decisions, the Seventh Circuit had said that the requirements of
DISCUSSION
“The text of the [FSIA] confers on foreign states two kinds of immunity.” Republic of Argentina v. NML Capital, Ltd., — U.S. —, 134 S.Ct. 2250, 2256, 189 L.Ed.2d 234 (2014). The first is jurisdictional immunity: a foreign state is immune from suit in U.S. courts except as provided in
Four subsections of
Subsection (c) contains the procedural prerequisites to execution that are foremost at issue here. Subsection (c) provides: “No attachment or execution referred to in subsections (a) and (b) of this section shall be permitted until the court has ordered such attachment and execution after having determined that a reasonable period of time has elapsed following the entry of judgment and the giving of any notice required under section 1608(e) of this chapter.”
Finally, there is subsection (g), which was added to
the property of a foreign state against which a judgment is entered under section 1605A, and the property of an agency or instrumentality of such a state, including property that is a separate juridical entity or is an interest held directly or indirectly in a separate juridical entity, is subject to attachment in aid of execution, and execution, upon that judgment as provided in this section, regardless of—
- the level of economic control over the property by the government of the foreign state;
- whether the profits of the property go to that government;
- the degree to which officials of that government manage the property or otherwise control its daily affairs;
- whether that government is the sole beneficiary in interest of the property; or
- whether establishing the property as a separate entity would entitle the foreign state to benefits in United States courts while avoiding its obligations.
Having initially surveyed these key features of
I. SECTION 1610(C) APPLIES TO THESE CASES
In their initial filings, none of the parties denied the applicability of
The central—and flawed—premise in Gates is that
Several features of the statute indicate, however, that
Subsections (a) and (b) of
What does that supplemental rule do? It overrides the general rule that “government instrumentalities established as juridical entities distinct and independent from their sovereign should normally be treated as such.” First Nat. City Bank v. Banco Para El Comercio Exterior de Cuba, 462 U.S. 611, 626-27, 103 S.Ct. 2591, 77 L.Ed.2d 46 (1983). Sometimes called the “Bancec” rule (after the Cuban instrumentality involved in First National), this means that “[i]f an instrumentality of a state operates independently of the state, liability for the obligations of the instrumentality cannot automatically be imputed to the state,” nor vice versa. Restatement (Third) of Foreign Relations Law § 452 reporter‘s note 2 (1987) (citation omitted). Importantly, the Bancec rule “extends also to the enforcement of judgments, so that property of one agency or instrumentality of a state may not be used to satisfy a judgment against other agencies or instrumentalities of that state, or against the state itself, in the absence of some liability-creating relationship between the two instrumentalities.” Id. (citation omitted). Section 1610(g) overrides the Bancec rule with respect to
II. SECTION 1610(C) IS SATISFIED HERE
Having determined that
The thornier question is whether “a reasonable period of time has elapsed following the entry of judgment and the giving of [the] notice” just discussed.
Sudan offers two broad arguments to the contrary, neither of which appears to have been previously addressed by any court. The first and more ambitious is that the term “judgment” in
Sudan nonetheless urges that such a requirement (of what the Court will call “nonappealable finality“) should be read into
Sudan‘s other comity-based argument fares no better. Sudan highlights a 1976 congressional hearing at which the State Department‘s Legal Adviser testified that the FSIA (then just a bill) was generally consistent with the European Convention on State Immunity—a treaty, Sudan points out, that does not allow attachment or execution until a judgment has become nonappealably final. Sudan‘s Opp‘n at 5-6 (citing Jurisdiction of U.S. Courts in Suits against Foreign States: Hearings Before the Subcommittee on Administrative Law and Governmental Relations of the H. Comm. on the Judiciary on H.R. 11315, 94th Cong., 2d Sess. 37 (1976) (statement of Monroe Leigh)). But this is not enough to infer such a requirement in
Sudan‘s fallback argument is that, even if
This is not to say that Sudan‘s basic concern—that its assets will be imperiled on the basis of a judgment that this Court might soon vacate—is illogical. But if Sudan would like a stay of execution pending the resolution of its motions, it can move for such relief under
CONCLUSION
For the foregoing reasons, the Court concludes that:
JOHN D. BATES
UNITED STATES DISTRICT JUDGE
