Estate of Jeremy Isadore Levin v. Wells Fargo Bank, N.A.

CourtCourt of Appeals for the D.C. Circuit
DecidedSeptember 26, 2025
Docket23-7080
StatusPublished

This text of Estate of Jeremy Isadore Levin v. Wells Fargo Bank, N.A. (Estate of Jeremy Isadore Levin v. Wells Fargo Bank, N.A.) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Estate of Jeremy Isadore Levin v. Wells Fargo Bank, N.A., (D.C. Cir. 2025).

Opinion

United States Court of Appeals FOR THE DISTRICT OF COLUMBIA CIRCUIT

Argued September 20, 2024 Decided September 26, 2025

No. 23-7080

ESTATE OF JEREMY ISADORE LEVIN, ET AL., APPELLEES

JAMES OWENS, ET AL., APPELLANTS

v.

WELLS FARGO BANK, N.A. AND UNITED STATES OF AMERICA, APPELLEES

Consolidated with 23-7082

Appeals from the United States District Court for the District of Columbia (No. 1:21-cv-00128)

Suzelle M. Smith argued the cause and filed the briefs for appellants Estate of Jeremy Isadore Levin, et al. 2 Jessica L. Wagner argued the cause for appellants James Owens, et al. With her on the briefs was Matthew D. McGill. Jonathan C. Bond entered an appearance.

Brian P. Hudak, Assistant U.S. Attorney, argued the cause for appellee United States of America. With him on the brief was Matthew M. Graves, U.S. Attorney. Jane M. Lyons, Assistant U.S. Attorney, entered an appearance.

Alex C. Lakatos argued the cause for appellee Wells Fargo Bank, N.A. With him on the brief was Jennifer L. Weinberg. William D. Sinnott entered an appearance.

Christopher D. Man was on the brief for amicus curiae Crystal Holdings Limited in support of neither party.

Before: KATSAS, WALKER, and GARCIA, Circuit Judges.

Opinion for the Court filed by Circuit Judge KATSAS.

KATSAS, Circuit Judge: An instrumentality of the Islamic Republic of Iran wired nearly $10 million through an American bank. The United States blocked the funds pursuant to the International Emergency Economic Powers Act and then initiated a civil-forfeiture action against them. Plaintiffs, who hold judgments against Iran for supporting terrorism, later sought to attach those same funds in order to execute their judgments. The district court quashed the attachments on two independent grounds: First, the funds were immune from attachment because the Terrorism Risk Insurance Act, which permits execution against certain blocked assets of designated state sponsors of terrorism, did not apply. Second, the government’s forfeiture action barred any later in rem proceeding against the same funds. We disagree on both points, so we reverse. 3 I

A

The Foreign Sovereign Immunities Act (FSIA) provides that foreign states are “immune from the jurisdiction” of United States courts unless one of its exceptions applies. 28 U.S.C. § 1604. One of these is the terrorism exception—courts may enter damages judgments against foreign states that have been designated as state sponsors of terrorism for committing or supporting specified terrorist activities. Id. § 1605A(a)(1); see Bank Markazi v. Peterson, 578 U.S. 212, 216 (2016).

The FSIA also provides the property of foreign states with immunities from attachment or execution. 28 U.S.C. § 1609. And it sets forth exceptions to these immunities. Id. § 1610.

B

Congress has authorized the President to regulate property owned by foreign governments or individuals in the interest of national security. Section 5(b) of the Trading with the Enemy Act (TWEA) authorizes the President to regulate “any property in which any foreign country or a national thereof has any interest,” 50 U.S.C. § 4305(b)(1)(B), but it applies only during wartime, id. § 4305(b)(1). Section 203 of the International Emergency Economic Powers Act (IEEPA), which contains no such limitation, is thus more prominent today. It enables the President to regulate transactions in property owned by “any foreign country or a national thereof,” id. § 1702(a)(1)(B), in order to address “any unusual and extraordinary threat … to the national security, foreign policy, or economy of the United States, if the President declares a national emergency with respect to such threat,” id. § 1701(a). The President has declared a national emergency relating to foreign terrorism and, pursuant to section 203, has “blocked” the property of 4 persons designated as terrorists or supporters of terrorism. See Exec. Order No. 13,224, 66 Fed. Reg. 49,079, 49,079–80 (Sep. 23, 2001). The Office of Foreign Assets Control (OFAC) is charged with implementing this directive. It has provided that when property of designated persons comes “within the United States” or “the possession or control of U.S. persons,” it is “blocked and may not be transferred, paid, exported, withdrawn or otherwise dealt in.” 31 C.F.R. § 594.201(a). However, OFAC may remove or qualify a block by issuing a license for specified uses or transactions. See id.

C

Congress has made assets blocked under TWEA or IEEPA available to victims of state-sponsored terrorism. First, it amended the FSIA to provide that the holder of a terrorism- based judgment against a foreign sovereign may attach property for which transactions are “prohibited or regulated” under TWEA or IEEPA. 28 U.SC. § 1610(f)(1)(A). But Congress also authorized the President to waive section 1610(f) “in the interest of national security.” Id. § 1610(f)(3). And the President did so almost immediately, finding that attachments under section 1610(f) would “impede the ability of the President to conduct foreign policy.” See Determination to Waive Attachment Provisions Relating to Blocked Property of Terrorist-List States, 65 Fed. Reg. 66,483 (Oct. 28, 2000).

Congress overrode the waiver by including another attachment provision in the Terrorism Risk Insurance Act of 2002, Pub. L. 107-297, 116 Stat. 2322 (TRIA). See Ministry of Def. & Support for the Armed Forces of the Islamic Republic of Iran v. Elahi, 556 U.S. 366, 386 (2009). Section 201 of TRIA states:

Notwithstanding any other provision of law, … in every case in which a person has obtained a judgment 5 against a terrorist party on a claim based upon an act of terrorism, … the blocked assets of that terrorist party (including the blocked assets of any agency or instrumentality of that terrorist party) shall be subject to execution or attachment in aid of execution in order to satisfy such judgment to the extent of any compensatory damages for which such terrorist party has been adjudged liable.

TRIA § 201(a). In sum, a foreign sovereign’s “blocked assets” are not immune from attachment by the holder of a terrorism- related judgment. TRIA defines a “blocked asset” as “any asset seized or frozen by the United States” under TWEA or IEEPA, id. § 201(d)(2)(A), but it excludes from the definition assets that are subject to certain licenses or used exclusively for diplomatic purposes, id. § 201(d)(2)(B). And it defines a “terrorist party” to include any foreign country designated as a state sponsor of terrorism. Id. § 201(d)(4). Where it applies, TRIA thus operates to abrogate the FSIA’s general immunity from execution and attachment that would otherwise protect the property of designated state sponsors of terrorism. Iran was so designated in 1984. See Determination Pursuant to Section 6(i) of the Export Administration Act of 1979—Iran, 49 Fed. Reg. 2,836 (Jan. 23, 1984).

D

Plaintiffs with terrorism-related judgments against foreign sovereigns also may seek compensation from the United States Victims of State Sponsored Terrorism Fund. See 34 U.S.C. § 20144(e)(1). Such plaintiffs may apply to the Victims Fund for compensation. See id. § 20144(c)(3)(A).

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