Belk v. United States

858 F.2d 706, 1988 WL 96763
Court of Appeals for the Federal Circuit·Decided September 22, 1988·No. No. 87-1631·Published·Cited by 28 cases

Opinions

FRIEDMAN, Circuit Judge.

This is an appeal from a judgment of the United States Claims Court granting summary judgment dismissing a complaint by former hostages held in the United States Embassy in Tehran, Iran. The appellants seek just compensation for the alleged taking by the United States of their property right to sue Iran for injuries sustained while held hostage — a right the United States extinguished in connection with obtaining the release of the hostages. The Claims Court dismissed the complaint on alternative grounds: (1) that the government’s action did not constitute a taking, and (2) that the complaint would require the resolution of political questions, which the court could not do. Belk v. United States, 12 Cl.Ct. 732 (1987). We affirm.

I

The appellants are 15 United States citizens, 13 of whom were held hostage in the United States Embassy in Tehran from November 4, 1979 to January 20, 1981, and the wives of two of the hostages. The United States had attempted unsuccessfully to obtain the release of the hostages in various ways. See Persinger v. Islamic Republic of Iran, 729 F.2d 835, 837 & n. 1 (D.C.Cir.), cert. denied, 469 U.S. 881, 105 S.Ct. 247, 83 L.Ed.2d 185 (1984). The hostages finally were released by agreements arranged through the government of Algeria.

The United States signed these agreements (commonly referred to as the Algiers Accords) on January 19, 1981. On the same day President Carter issued a series of Executive orders implementing the terms of the agreements, Exec. Orders Nos. 12276-12285, 3 C.F.R. 104-18 (1982), reprinted in 50 U.S.C. § 1701 at 150-55 (1982), and on February 24, 1981, President Reagan issued an Executive order “ratifying” the January 19th Executive orders. Exec. Order No. 12294, 3 C.F.R. 139-40 (1982), reprinted in 50 U.S.C. § 1701 at 155 (1982). The Supreme Court upheld the Executive orders in Dames & Moore v. Regan, 453 U.S. 654, 101 S.Ct. 2972, 69 L.Ed.2d 918 (1981).

The relevant provision of the Algiers Accords prohibits United States nationals from prosecuting claims related to the seizure of the hostages, their detention, and injuries to them or their properties that arose out of events that occurred before the date of the Accords. Belk, 12 Cl.Ct. at 733. The day after the United States signed the Algiers Accords, the hostages were released.

Following the appellants’ release, they filed the present suit against the United States in the Claims Court. The complaint alleged that the appellants had “valid and valuable causes of action against the Islamic Republic of Iran, its officials, agents, instruments, and employees” resulting from the mistreatment the appellants suffered while being held hostage; that before the Accords were executed, the appellants “were entitled to prosecute their valid and valuable causes of action and to collect upon their claims” in the “federal district courts of the United States” and “in Iran itself”; and that by executing the Accords the United States “barred plaintiffs from prosecuting any and all of their existing and potential causes of action against Iran in any court or forum anywhere in the [708] world” and thereby “extinguished plaintiffs’ valid causes of action.”

According to the complaint, these causes of action “constituted valuable private property rights,” which the United States has “taken for public use without just compensation.” The complaint asserted that the appellants are entitled to recover from the United States just compensation “equivalent to the damages they could have recovered from Iran had defendant not extinguished their claims.”

The United States moved for summary judgment. The Claims Court granted the motion, and dismissed the complaint. The court held that there had been no taking because “[wjhere a governmental action is intended to primarily benefit particular individuals, a taking has not occurred, even though there is an incidental benefit to the public.” 12 Cl.Ct. at 734. Based on the undisputed facts, the court ruled that the plaintiffs were the principal beneficiaries of the President’s actions, even though there was an incidental benefit to all Americans. The court noted that “ ‘the president’s power to espouse and settle claims of our nationals against foreign governments is of ancient origin and constitutes a well-established aspect of international law.’ ” Id. (quoting Shanghai Power Co. v. United States, 4 Cl.Ct. 237, 246 (1983), aff'd mem., 765 F.2d 159 (Fed.Cir.), cert. denied, 474 U.S. 909, 106 S.Ct. 279, 88 L.Ed.2d 243 (1985)). The court concluded that the facts “do not require in the interests of ‘justice and fairness’ that plaintiffs’ [sic] receive compensation from the United States for the settlement of their claims against Iran.” 12 Cl.Ct. at 734.

Alternatively, the court held that the complaint raised a political question because “[tjhis case involves a policy decision made by the President during a crisis situation.” Id. at 736. The court noted that “ ‘[a] judicial inquiry into whether the President could have extracted a more generous settlement from another country would seriously interfere with his ability to carry on diplomatic relations.’ ” Id. (quoting Shanghai Power, 4 Cl.Ct. at 248). The court concluded that the President’s extin-guishment of the plaintiffs’ claims could not ground a cause of action for a taking “because such an action is not susceptible to judicial review.” 12 Cl.Ct. at 736.

II

Although the appellants state in their brief that “[t]he facts in this case are essentially undisputed,” they nevertheless argue that there were disputed issues of material fact that precluded summary judgment. They fail to point to any such facts, however. The alleged “disputed material facts” to which they refer are questions of law relating to the validity of the Algiers Accords. The Claims Court properly decided the case on summary judgment.

III

On the undisputed facts, the Claims Court correctly held that the appellants have not stated a valid or judicially cognizable claim for a taking of private property for a public use, for which the United States is required to pay just compensation.

A. Assuming without deciding that the appellants’ claims against Iran constituted “property” under the Fifth Amendment’s takings clause, the extinguishment of those claims pursuant to the Algiers Accords did not constitute a taking of that property.

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Belk v. United States, 858 F.2d 706, 1988 WL 96763 (Fed. Cir. 1988).

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