Flanagan v. Islamic Republic of Iran

190 F. Supp. 3d 138, 100 Fed. R. Serv. 680, 94 Fed. R. Serv. 3d 1518, 2016 U.S. Dist. LEXIS 72331, 2016 WL 3149560
CourtDistrict Court, District of Columbia
DecidedJune 3, 2016
DocketCivil Action No. 2010-1643
StatusPublished
Cited by22 cases

This text of 190 F. Supp. 3d 138 (Flanagan v. Islamic Republic of Iran) 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
Flanagan v. Islamic Republic of Iran, 190 F. Supp. 3d 138, 100 Fed. R. Serv. 680, 94 Fed. R. Serv. 3d 1518, 2016 U.S. Dist. LEXIS 72331, 2016 WL 3149560 (D.D.C. 2016).

Opinion

MEMORANDUM OPINION

RUDOLPH CONTRERAS, United States District Judge

GRANTING IN PART AND DENYING IN PART THE Republic op Sudan’s Motion To Set Aside the Default Judgment

I. INTRODUCTION

Plaintiffs in this' case are the family members of Electronic Warfare Technician First Class Kevin Shawn Rux, who was killed along with sixteen other American sailors in the 2000 terrorist bombing of the U.S.S. Cole in Yemen, carried out by Al-Qaeda. In 2010, Plaintiffs filed a lawsuit under the Foreign Sovereign Immunities Act (“FSIA”), 28 U.S.C-. '§§ 1602 et seq., against Syria, Iran, Sudan, and several of those foreign states’ agents and political subdivisions, alleging that those defendants provided material support to Al-Qae-da which caused the U.S.S. Cole bombing. Although they were served with process in January 2011, the Iranian and Sudanese defendants never appeared. The Clerk of Court entered default against those parties on October 31, 2012, and this Court held an evidentiary hearing on August 12, 2014, to determine whether Plaintiffs had “established] [their] claim or right to relief by evidence satisfactory to the court.”- 28 U.S.G. § 1608(e). The Court concluded that the Plaintiffs had and, on March 31, 2016, issued a lengthy opinion setting forth the Court’s Findings of Fact and Conclusions of Law. See generally Flanagan v. Islamic Republic of Iran, 87 F.Supp.3d 93 (D.D.C.2015). The Court awarded Plaintiffs $18,750,000.00 in compensatory damages and $66,250,000.00 in punitive damages.

Two months later — and over four years after Sudan had been served with process — Sudan finally entered an appearance and filed a motion to set aside the default judgment. See Sudan’s Mot. to Set Aside Default J., ECF No. 55 [hereinafter “Sudan’s Mot.”]. Sudan now raises several belated defenses which, it claims, establishes “good cause” under Federal Rule of Civil Procedure 55(c) to set aside the default judgment. Several of these arguments were recently considered by, another judge in this district in seven related cases in which Sudan sought to set aside default judgments arising out of the 1998 bombings of the United States embassies in Nairobi, Kenya, and Dar es Salaam, Tanzania. See Owens v. Republic of Sudan, 174 F.Supp.3d 242, No. 01-2244, 2016 WL 1170919 (D.D.C. Mar. 23, 2016), appeal docketed, No¿ 16-7048 (D.C.Cir. Apr. 22, 2016). In many respects the Court finds the opinion in Oivens instructive, and will rely on that decision’s analysis where persuasive and relevant. As explained below, the Court will grant in part and deny in part Sudan’s motion, and will vacate the portion of the default judgment awarding punitive damages, without definitively determining, at this stage, whether punitive damages are available to Plaintiffs in this case, .

*146 II. FACTUAL BACKGROUND

The Court made substantial Findings of Fact and Conclusions of Law when entering a default judgment against Iran and Sudan. See generally Flanagan, 87 F.Supp.3d at 93-127. The Court assumes familiarity with its prior opinion and revisits only those facts and statutory provisions particularly relevant for present purposes.

A. Statutory Background

'The FSIA “provides the sole basis for obtaining jurisdiction over a foreign state in the courts of this country.” OBB Personenverkehr AG v. Sachs, — U.S. —, 136 S.Ct. 390, 393, 193 L.Ed.2d 269 (2015) (quoting Argentine Republic v. Am-erada Hess Shipping Corp., 488 U.S. 428, 443,109 S.Ct. 683,102 L.Ed.2d 818 (1989)). The FSIA starts with a general presumption of immunity for foreign states. See, e.g., Saudi Arabia v. Nelson, 507 U.S. 349, 355, 113 S.Ct. 1471, 123 L.Ed.2d 47 (1993); TMR Energy Ltd. v. State Prop. Fund of Ukr., 411 F.3d 296, 299 (D.C.Cir.2005). That presumption of immunity controls unless one of several statutorily prescribed exceptions applies. See 28 U.S.C. § 1604 (“[A] foreign state shall be immune from the jurisdiction of the courts of the United States and of the States except as provided in sections 1605 to- 1607 of [Title 28].”). Federal district courts’ jurisdiction over FSIA claims are similarly tied to the question of immunity: 28 U.S.C. § 1330(a) provides that district courts “shall have original jurisdiction ... of any nonjury civil action against a foreign state” only insofar as the plaintiff asserts a claim for relief “with respect to which the foreign state is not entitled to immunity either under sections 1605-1607 of [Title 28] or under any applicable international agreement.” 28 U.S.C; ■ § 1330(a). As a result, this Court’s “[s]ubject matter jurisdiction is ... intertwined with immunity,” Owens, 174 F.Supp.3d at 249, 2016 WL 1170919, at *2, because “subject matter jurisdiction in any such action depends on the existence of one of the specified exceptions to foreign sovereign immunity,” Verlinden B.V. v. Cent. Bank of Nigeria, 461 U.S. 480, 493, 103 S.Ct. 1962, 76 L.Ed.2d 81 (1983).

One of those exceptions, first enacted by Congress in 1996, is referred to as the “terrorism exception” to foreign sovereign immunity. See Antiterrorism and Effective Death Penalty Act of 1996, Pub. L. No. 104-132, § 221, 110 Stat. 1214, 1241-43. Although that exception was previously codified as one of the many exceptions to foreign sovereign immunity listed in 28 U.S.C. § 1605(a), see ' 28 U.S.C. § 1605(a)(7) (2006 ed.), in 2008 Congress amended the terrorism-related provisions as part of the National Defense Authorization Act, 1 see National Defense Authorization Act of 2008, Pub. L. No. 110-181, § 1083, 122 Stat. 3, 338-44. The immunity exception was recodified in section 1605A, which is entitled “Terrorism exception to the jurisdictional immunity of a foreign state.” See 28 U.S.C. § 1605A. The exception is substantially similar .to the prior version, and states that:

A foreign state shall not be immune from the jurisdiction of courts .of the United States or of the States in any case not otherwise covered by this chapter in which money damages are sought against a foreign state for personal injury or death that was caused by an act of torture, extrajudicial killing, ’ aircraft sabotage, hostage taking, or the provi *147

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190 F. Supp. 3d 138, 100 Fed. R. Serv. 680, 94 Fed. R. Serv. 3d 1518, 2016 U.S. Dist. LEXIS 72331, 2016 WL 3149560, Counsel Stack Legal Research, https://law.counselstack.com/opinion/flanagan-v-islamic-republic-of-iran-dcd-2016.