FDD Files Amicus Brief in Support of Victims of Iranian Terrorism for Supreme Court Case

Washington, DC —The Foundation for Defense of Democracies (FDD) has filed a ‘friend of the court’ brief in advance of oral arguments to be heard by the Supreme Court on January 13. This landmark case, Bank Markazi v. Peterson, will determine whether American victims of Iranian terrorism will be able to collect on judgments won against Iran from funds belonging to the Central Bank of Iran being held in a New York bank. The brief emerged as part of FDD’s work on Iran and terrorism that has spanned more than a decade.

To date, Iran, regarded by the State Department as the leading state sponsor of terrorism, has refused to pay judgments rendered against it and has defied court decisions ordering compensation for victims of terrorism.

The district court and the court of appeals ruled in favor of the American victims, but the Central Bank of Iran, also known as Bank Markazi, has appealed, challenging the constitutionality of the Iran Threat Reduction and Syrian Human Rights Act of 2012, which removed sovereign immunity protections from the assets in question and clarified that these assets could be used to settle outstanding claims against Iran. The provision in the law made it easier for victims of terrorism to receive compensation.

The legislation was supported by overwhelming bipartisan majorities of both houses of Congress and was signed into law by President Obama. The administration filed an amicus curiae brief urging the Supreme Court not to overturn the lower courts’ decisions. In an important display of bipartisan and bicameral agreement, the House and Senate have also filed briefs in support of the victims of Iranian terrorism.

FDD’s amicus brief argues that the Iran Threat Reduction and Syrian Human Rights Act of 2012 is “a critical tool in the United States’ sustained efforts to use economic sanctions to punish Iran for, and deter it from, supporting acts of terrorism against U.S. citizens.” Congress passed and President Obama signed the law in order to ensure not only that the victims of Iranian terrorism are compensated for their suffering but also that “Iran itself is held responsible for the deplorable acts of terrorism that it sponsors, and meaningfully deterred from continuing to do the same,” FDD explained.

FDD’s court brief also analyzes the legal and constitutional principles in the case, debunking the claims of the Central Bank of Iran that the law violates the separation of powers principle. The brief cites the legal precedent repeatedly affirmed by U.S. courts that while Congress cannot direct the courts how to apply an existing law, it can change the applicable laws and thereby affect the outcome of a pending case.

Coinciding with the implementation of the Iran nuclear agreement, the case serves as an important reminder that Iran’s illicit activities extend beyond the nuclear realm. “The July nuclear agreement between the international community and Iran does not expunge Iran’s decades-long rap-sheet of terrorist activities including terrorist attacks against American service members and citizens,” FDD Executive Director Mark Dubowitz explained.

Dubowitz continued, “Unlike Libya, which compensated the victims of Pam Am Flight 103 as part of its efforts to end its global isolation, Iran is unrepentant and continues to defy international norms through its support of terrorist proxies and the Bashar Assad regime in Syria. Multinational corporations interested in investing in Iran after nuclear sanctions are suspended ought to keep in mind Iran’s record of terrorism when they consider moral and business risks.” He added, “With Iran poised to get perhaps $100 billion in sanctions relief, it’s deeply regrettable that the Iran deal was not structured in a way that provided to these victims of Iranian terrorism compensation from the frozen oil revenues due to be unfrozen in just weeks. That would have been a sure signal of the administration’s resolve to hold Iran responsible for terrorism against its citizens.” Dubowitz, an attorney, leads projects on Iran, sanctions, and nonproliferation. He has advised U.S. administrations and lawmakers and testified nineteen times before Congress and foreign legislative committees on sanctions and nuclear issues. He is the author or co-author of more than twenty studies on economic sanctions and Iran’s nuclear program.

The Supreme Court’s decision in the pending case may have implications beyond the legal issues under consideration. “If the leading state sponsor of terrorism can escape justice, this case will have broader ramifications on the U.S. government’s ability to use economic sanctions to combat global terrorism,” FDD Senior Counselor John Hannah noted. “The Iran Threat Reduction and Syrian Human Rights Act of 2012 is part of a long history of congressional efforts to address Iranian support for terrorism, nuclear proliferation, and regional aggression. Claiming that it is a one-off piece of legislation, as the petitioner does, defies logic.” Hannah, a lawyer specializing in international dispute resolution, served as national security advisor to the vice president under George W. Bush, a senior advisor to Secretary of State Warren Christopher, and a senior member of Secretary of State James Baker’s Policy Planning Staff.

FDD’s amicus brief was prepared by Erin Murphy and Michael Lieberman of Bancroft PLLC. Ms. Murphy is a partner at Bancroft PLLC, focusing on Supreme Court, appellate, and constitutional litigation. She has worked on numerous significant matters and successfully argued before the Supreme Court. Prior to joining Bancroft, Ms. Murphy served as a law clerk to Chief Justice John Roberts. Mr. Lieberman is an associate at Bancroft PLLC, focusing on appellate litigation and strategic counseling.

About the Foundation for Defense of Democracies:

The Foundation for Defense of Democracies (FDD) is a non-profit, non-partisan 501(c)3 policy institute focusing on foreign policy and national security. Founded in 2001, FDD combines policy research, democracy and counterterrorism education, strategic communications and investigative journalism in support of its mission to promote pluralism, defend democratic values and fight the ideologies that drive terrorism. Visit our website at www.defenddemocracy.org and connect with us on Twitter, Facebook and YouTube.

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