Braun v. United States of America

CourtDistrict Court, District of Columbia
DecidedMarch 8, 2021
DocketCivil Action No. 2020-2613
StatusPublished

This text of Braun v. United States of America (Braun v. United States of America) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Braun v. United States of America, (D.D.C. 2021).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

MURRAY BRAUN,

Plaintiff, v. Civil Action No. 20-2613 (JEB) UNITED STATES OF AMERICA, et al.,

Defendants.

MEMORANDUM OPINION

Five years ago, Congress established the United States Victims of State Sponsored

Terrorism Fund, which largely draws from sanctions penalties to compensate those who have

obtained judgments against foreign states for acts of state-sponsored terrorism. Plaintiff Murray

Braun is one such judgment creditor. Believing that more money should be paid out more

frequently from the Fund, he filed this action under the Administrative Procedure Act to

challenge the Government’s interpretation of the Fund’s enabling statute and subsequent 2019

amendment. Braun asks the Court to increase the overall pot of funds, require additional

payments, and set specific deadlines for those payments. His desired mandates would net him

another payment on top of the roughly $250,000 he has received to date. Government

Defendants not surprisingly object, and they now move to dismiss both for lack of jurisdiction

and for failure to state a claim.

The Court, as it may for questions of statutory jurisdiction, assumes that it has authority

to review Plaintiff’s causes of action. On the merits, it holds that Braun’s claims collapse on

statutory-interpretation grounds or are otherwise moot. Dismissal is thus warranted.

1 I. Background

Under the Foreign Sovereign Immunities Act, courts can order state sponsors of terrorism

to pay damages to their victims. See 28 U.S.C. § 1605A. Congress has facilitated victims’

ability to collect these damages in multiple ways, including by setting up the United States

Victims of State Sponsored Terrorism Fund in 2015. See Compensation for United States

Victims of State Sponsored Terrorism Act, Pub. L. No. 114-113, § 404, 129 Stat. 2242, 3007

(2015). It has subsequently amended this Terrorism Act twice — first in 2019 and then in 2020.

See United States Victims of State Sponsored Terrorism Fund Clarification Act, Pub. L. No.

116-69, § 1701, 133 Stat. 1134, 1140–43 (2019); Consolidated Appropriations Act, 2021, Pub.

L. No. 116-260, § 1705 (2020).

When setting up the program in 2015, Congress initially appropriated $1.025 billion to

the Fund. See Pub. L. No. 114-113, § 404(e)(5). It directed that future funding come from

certain assets of Iran, as well as from funds and property forfeited to the United States for

sanctions violations. Id. § 404(e)(2). To be precise, the Terrorism Act specified that all criminal

financial penalties against sanctions violators would funnel into the Fund and that half of these

types of civil penalties would also flow there. Id. § 404(e)(2)(A)(i)–(ii).

To “administer the compensation program,” Congress directed the Attorney General to

appoint a Special Master. See 34 U.S.C. § 20144(b)(1)(A). The first to take on that mantle was

Kenneth Feinberg, who solicited claims, determined which were eligible, and dispensed

compensation in accordance with the Terrorism Act’s prescriptions. See ECF No. 9 (Def. MTD)

at 4. More specifically, the statute mandated that he first cap claims at $20 million, then

calculate their unpaid balance, and ultimately use that sum in determining how to distribute pro

rata payments to claimants . Id. §§ 20144(d)(3)–(4). As for timing, the Terrorism Act

2 contemplated the Special Master’s authorizing a first round of payments within a year of

December 18, 2015, a second round less than two years thereafter, and subsequent rounds

annually, so long as money remained available. Id. §§ 20144(d)(2)–(4). In addition to

administering payments, the initial Special Master also devised “the procedures necessary for

United States persons to apply and establish eligibility for payment.” Id. § 20144(b)(2)(A); ECF

No. 9-2 (Fund Procedures); Def. MTD at 5 (summarizing those procedures).

Among those eligible were individuals with a final district-court judgment that held a

designated state sponsor of terrorism liable for damages for an injury arising from torture,

extrajudicial killing, aircraft sabotage, hostage taking, or providing material support for these

actions. Plaintiff Murray Braun falls within this definition. His granddaughter was killed in

Jerusalem in an attack executed by Hamas, which another court in this district found had

received “long-standing material support and resources” from the Islamic Republic of Iran.

Braun v. Iran, 228 F. Supp. 3d 64, 76–77 (D.D.C. 2017). On these findings, it awarded him $2.5

million in compensatory damages against Iran in 2017. Id. at 84–85.

Plaintiff then applied to the Fund, and he received a first payment of $104,888 in January

2019 during the Fund’s second round of distributions. See ECF No. 1 (Complaint), ¶ 12; Def.

MTD at 8, 27; ECF No. 9-4 (Declaration of Jane K. Lee), ¶ 4. That same year, as mentioned

above, Congress amended the Terrorism Act by passing the Clarification Act, which made

several “[t]echnical [c]orrections.” Pub. L. No. 116-69, § 1701(b). Most important for our

purposes, it increased the proportion of civil penalties deposited into the Fund from 50% to 75%

and explicitly authorized a third round of payments. Id. For this third distribution, the

Clarification Act specified that the Fund would accept applications until February 19, 2020, and

needed to authorize payments by May 19 of that year. Id. Heeding these instructions, the Fund

3 then reviewed new applications and allocated $1.075 billion for its third round of distributions.

See ECF No. 9-1 (Special Master June 2020 Report) at 3. Plaintiff was notified on August 31,

2020, that he would receive almost $146,000 in the third round. See Lee Decl., ¶ 4.

Growing impatient to receive this distribution, Braun asked a Fund attorney when he

would receive his payment. See ECF No. 1-4 (Robert Tolchin and Anish Mathur Emails) at 7.

Ensuing emails between his counsel and the Fund revealed sharp disagreements in how the Fund

was interpreting its statutory framework and obligations. Id. at 1–5.

Finding himself at an “impasse” with the Fund, see Compl., ¶ 42, Plaintiff then brought

this suit under the Administrative Procedure Act on September 16, 2020, against the United

States of America, then-Attorney General William Barr, the Department of Justice, then-

Treasury Secretary Steven Mnuchin, the Department of Treasury, and then-interim Special

Master Deborah Connor. Id., ¶¶ 13–19. He seeks a declaration on four aspects of the Fund’s

operations: 1) The Clarification Act’s increased percentage of civil penalties to be deposited into

the Fund should be retroactive to December 18, 2015; 2) The Fund must dispense a supplemental

third-round distribution; 3) When the Fund has more than $100 million, the Attorney General

must appoint a Special Master, and the Fund is required to make a distribution; and 4) The Fund

is required to distribute payments by January 1 of each year and was previously required to make

its third-round payments by May 19, 2020. Id., ¶¶ 33, 49, 59, 79–80. He also seeks an

injunction compelling Defendants to comply with the above interpretations.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

United States v. Welden
377 U.S. 95 (Supreme Court, 1964)
Abbott Laboratories v. Gardner
387 U.S. 136 (Supreme Court, 1967)
Scheuer v. Rhodes
416 U.S. 232 (Supreme Court, 1974)
Califano v. Sanders
430 U.S. 99 (Supreme Court, 1977)
Block v. Community Nutrition Institute
467 U.S. 340 (Supreme Court, 1984)
Heckler v. Chaney
470 U.S. 821 (Supreme Court, 1985)
Bowen v. Michigan Academy of Family Physicians
476 U.S. 667 (Supreme Court, 1986)
Papasan v. Allain
478 U.S. 265 (Supreme Court, 1986)
Bowen v. Georgetown University Hospital
488 U.S. 204 (Supreme Court, 1988)
Lujan v. Defenders of Wildlife
504 U.S. 555 (Supreme Court, 1992)
Lindh v. Murphy
521 U.S. 320 (Supreme Court, 1997)
Immigration & Naturalization Service v. St. Cyr
533 U.S. 289 (Supreme Court, 2001)
Bell Atlantic Corp. v. Twombly
550 U.S. 544 (Supreme Court, 2007)
Ashcroft v. Iqbal
556 U.S. 662 (Supreme Court, 2009)
Sparrow, Victor H. v. United Airlines Inc
216 F.3d 1111 (D.C. Circuit, 2000)
Trudeau v. Federal Trade Commission
456 F.3d 178 (D.C. Circuit, 2006)

Cite This Page — Counsel Stack

Bluebook (online)
Braun v. United States of America, Counsel Stack Legal Research, https://law.counselstack.com/opinion/braun-v-united-states-of-america-dcd-2021.