Federal Insurance v. al Qaida

134 F. Supp. 3d 774
CourtDistrict Court, S.D. New York
DecidedSeptember 29, 2015
DocketNo. 03-MDL-1570 (GBD)
StatusPublished
Cited by1 cases

This text of 134 F. Supp. 3d 774 (Federal Insurance v. al Qaida) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Federal Insurance v. al Qaida, 134 F. Supp. 3d 774 (S.D.N.Y. 2015).

Opinion

OPINION

GEORGE B. DANIELS, District Judge:

This case involves claims by families and estates of the victims of the September 11, 2001 terrorist attacks, individuals injured by the attacks, and various commercial entities that incurred damages and losses as a result of the attacks. The moving defendants are the Kingdom of Saudi Arabia (“Saudi Arabia”) and the Saudi High Commission for Relief of Bosnia & Herzegovina (“SHC”) (collectively, “Defendants”). Plaintiffs allege that agents and employees of the Saudi government bear responsibility for the September 11, 2001 attacks because they directly and. knowingly assisted the hijackers and plotters who carried out the attacks. They allege further that al Qaeda’s development into a terrorist organization was fueled principally by financial and operational support from Saudi government “da’awa organizations” (described by Defendants as “charities”), including the SHC.

Defendants move this Court to dismiss Plaintiffs’ Complaint for lack of subject matter jurisdiction, pursuant to Federal Rule of Civil Procedure 12(b)(1), on the basis that Defendants .are immune from suit under the Foreign Sovereign Immunities Act (“FSIA”), 28 U.S.C. § 1602 et seq. (See Defendants’ Motion, (ECF No. 2893); Defendants’ Memorandum in Support (“Defs.’ Mem.”), (ECF No. 2894).) Plaintiffs oppose Defendants’ motion to dismiss and separately move to file a 587-para-graph consolidated amended pleading of facts and evidence in support of their claims against Defendants (the “Averment of Facts”).1 (See Plaintiffs’ Motion (“Pls.’ Mot.”), (ECF 2891).) The issue before this Court is whether the noncommercial tort exception to the FSIA strips Defendants of their sovereign immunity. The noncommercial tort exception provides an exception to FSIA immunity when money damages are sought against a foreign state [778]*778or its instrumentalities “for personal injury or death, or damage to or loss of property, occurring in the United States and caused by the tortious act or omission of that foreign state or of any official or employee of that foreign state while acting within the scope of his office or employment.” 28 U.S.C. § 1605(a)(5).

Defendants’ motion to dismiss is GRANTED. Plaintiffs’ motion to file the Averment of Facts is DENIED as futile.

I. PROCEDURAL HISTORY

Saudi Arabia and the SHC previously filed motions to dismiss this action in 2004, claiming, inter alia, immunity from the jurisdiction of the United States pursuant to the FSIA. Plaintiffs argued that the FSIA’s noncommercial tort exception, 28 U.S.C. § 1605(a)(5), applied to the actions of Defendants, and that, therefore, Defendants lacked jurisdictional immunity. In response, Defendants argued that the noncommercial tort exception was inapplicable for at least three reasons: (1) “[Plaintiffs failed to allege that the ‘entire tort’ occurred in the United States”; (2) “the ‘discretionary function’ exclusion to the FSIA’s noncommercial tort exception applied,” see id. § 1605(a)(5)(A); and (3) “[Plaintiffs did not plead the necessary causation.” In re Terrorist Attacks on Sept. 11, 2001, 714 F.3d 109, 112 (2d Cir. 2013) (“In re Terrorist Attacks (SJRC)”).

In 2005, Judge .Casey held that Defendants were foreign sovereigns immune from suit. See In re Terrorist Attacks on Sept. 11, 2001, 349 F.Supp.2d 765, 802-04 (S.D.N.Y.2005) (“In re Terrorist Attacks /”) (Casey, J.) (dismissing claims against Saudi Arabia); In re Terrorist Attacks on Sept. 11, 2001, 392 F.Supp.2d 539, 553 (S.D.N.Y.2005) (“In re Terrorist Attacks II”) (Casey, J.) (dismissing claims against the SHC).2 Specifically, Judge Casey held that the discretionary function exclusion to the noncommercial tort exception applied. “[T]he ‘discretionary function’ exclusion provides that a foreign sovereign retains immunity under the FSIA even if its act or omission is deemed to be tortious if the act is ‘based upon the exercise or performance or the failure to exercise or perform a discretionary function regardless of whether the discretion [is] abused.’ ” In re Terrorist Attacks (SJRC), 714 F.3d at 112 (citing 28 U.S.C. § 1605(a)(5)(A)). An order of partial final judgment was entered as to those decisions on January 10, 2006. (See Clerk’s Judgment (ECF No. 1594).)

The Second Circuit affirmed the dismissal of the claims asserted against Saudi Arabia and the SHC, but on an alternative basis. In re Terrorist Attacks on September 11, 2001, 538 F.3d 71, 90 (2d Cir.2008) (“In re Terrorist Attacks III”). The Second Circuit “held that the FSIA’s noncommercial tort exception cannot apply to claims based on alleged involvement in terrorist activities, because ‘claims based on terrorism must be brought under the Terrorism Exception, and not under any other FSIA exception.’ ” In re Terrorist Attacks (SJRC), 714 F.3d at 113 (quoting In re Terorrist Attacks III, 538 F.3d at 90).3 In 2011, however, the Second Circuit [779]*779decided Doe v. Bin Laden, 663 F.3d 64 (2d Cir.2011),4 which — through use of the Circuit’s “mini-en banc” procedure — partially overruled the judgment in In re Terrorist Attacks III. Id. at 70 n. 10. The Second Circuit in Doe held that “the terrorism exception, rather than limiting the jurisdiction conferred by the noncommercial tort exception, provides an additional basis for jurisdiction.” Id. at 70.

Plaintiffs therefore moved this Court for relief from judgment under Federal Rule of Civil Procedure 60(b). This Court denied that motion with the view that the Second Circuit “would be able to consider that unreviewed issue[, application of the discretionary function exclusion,] on appeal from the denial.” See In re Terrorist Attacks on Sept. 11, 2001, 741 F.3d 353, 354-55 (2d Cir.2013) (“In re Terrorist Attacks V”). In 2013, the Second Circuit reversed the order denying the Rule 60(b) motion and remanded this action to this Court for further proceedings consistent with its opinion. Id. at 355, 357 (“We conclude that the circumstances here are ‘extraordinary and warrant relief under Rule 60(b)(6).”). The Second Circuit specifically noted that Defendants raised before Judge Casey three independent grounds for dismissal under the FSIA, and “[a]ll [of] these issues may be considered by the District Court on remand.” Id. at 359.

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134 F. Supp. 3d 774, Counsel Stack Legal Research, https://law.counselstack.com/opinion/federal-insurance-v-al-qaida-nysd-2015.