Fuld v. Palestine Liberation Organization

606 U.S. 1, 145 S. Ct. 2090
Supreme Court of the United States·Decided June 20, 2025·No. 24-20·Published·Cited by 26 cases

Opinion

(Slip Opinion) OCTOBER TERM, 2024 1

Syllabus

NOTE: Where it is feasible, a syllabus (headnote) will be released, as is being done in connection with this case, at the time the opinion is issued. The syllabus constitutes no part of the opinion of the Court but has been prepared by the Reporter of Decisions for the convenience of the reader. See United States v. Detroit Timber & Lumber Co., 200 U. S. 321, 337.

SUPREME COURT OF THE UNITED STATES

FULD ET AL. v. PALESTINE LIBERATION ORGANIZATION ET AL.

CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE SECOND CIRCUIT

No. 24–20. Argued April 1, 2025—Decided June 20, 2025*

Before the Court are two separate lawsuits filed in the United States District Court for the Southern District of New York under the Anti- terrorism Act of 1990 (ATA). The ATA creates a federal civil damages action for U. S. nationals injured or killed “by reason of an act of inter- national terrorism.” 18 U. S. C. §2333(a); see also §2333(d)(2) (permit- ting aiding and abetting liability). Respondents (defendants below) are the Palestine Liberation Organization (PLO) and Palestinian Au- thority (PA)—entities responsible for carrying out governmental func- tions for parts of the West Bank and Gaza Strip. The question presented is whether the exercise of personal jurisdic- tion over respondents under the Promoting Security and Justice for Victims of Terrorism Act (PSJVTA) violates the Due Process Clause of the Fifth Amendment. The PSJVTA names the PA and PLO specifi- cally and provides that they “shall be deemed to have consented to per- sonal jurisdiction” in ATA cases under two circumstances. §§2334(e)(1), (5). The first jurisdictional predicate relates to respond- ents’ practice of paying salaries to terrorists in Israeli prisons and to families of deceased terrorists—conduct Congress has condemned as “an incentive to commit acts of terror.” 132 Stat. 1143. The second ties jurisdiction to respondents’ activities on U. S. soil. §2334(e)(1)(B). Petitioners alleged that respondents engaged in conduct triggering both jurisdictional predicates. The Second Circuit held that the —————— *Together with Waldman et al. v. Palestine Liberation Organization et al. (see this Court’s Rule 12.4) and No. 24–151, United States v. Pales- tine Liberation Organization et al., also on certiorari to the same court. 2 FULD v. PALESTINE LIBERATION ORGANIZATION

PSJVTA could not, consistent with constitutional due process, estab- lish personal jurisdiction over the PLO or PA. Held: The PSJVTA’s personal jurisdiction provision does not violate the Fifth Amendment’s Due Process Clause because the statute reasona- bly ties the assertion of jurisdiction over the PLO and PA to conduct involving the United States and implicating sensitive foreign policy matters within the prerogative of the political branches. Pp. 7–21. (a) Courts must have personal jurisdiction over parties before re- solving cases. Lightfoot v. Cendant Mortgage Corp., 580 U. S. 82, 95. The Court’s modern personal jurisdiction cases have addressed the limitations imposed by the Fourteenth Amendment on the jurisdiction of state courts, but the Court has reserved whether the Fifth Amend- ment imposes the same restrictions on federal courts. Pp. 7–14. (1) The Fourteenth Amendment personal jurisdiction framework derives from International Shoe Co. v. Washington, 326 U. S. 310, and requires that a defendant have sufficient “contacts” with the forum State so that maintaining suit is “reasonable” and “does not offend tra- ditional notions of fair play and substantial justice.” Ford Motor Co. v. Montana Eighth Judicial Dist. Court, 592 U. S. 351, 358 (quoting International Shoe). Respondents urge application of this familiar framework here, noting that the Due Process Clauses of the Fifth and Fourteenth Amendments are textually similar. The Court has recog- nized, however, that the Amendments “were engrafted upon the Con- stitution at different times and in widely different circumstances” and thus that “questions may arise in which different constructions and applications of their provisions may be proper.” French v. Barber As- phalt Paving Co., 181 U. S. 324, 328. Pp. 8–9. (2) The Fourteenth Amendment’s due process limitations are driven by two principles: (1) treating defendants fairly and (2) protecting in- terstate federalism, the latter of which ensures “that the States, through their courts, do not reach out beyond the limits imposed on them by their status as coequal sovereigns in a federal system.” World- Wide Volkswagen Corp. v. Woodson, 444 U. S. 286, 292. These inter- state federalism concerns do not apply to the Fifth Amendment’s limi- tations on the power of the Federal Government and the corollary au- thority of the federal courts. The Constitution empowers the Federal Government—and it alone—with both nationwide and extraterritorial authority. Because the State and Federal Governments occupy dra- matically different sovereign spheres, the Court declines to import the Fourteenth Amendment minimum contacts standard into the Fifth Amendment. Rather, the Fifth Amendment permits a more flexible jurisdictional inquiry commensurate with the Federal Government’s broader sovereign authority. Pp. 9–12. (3) While acknowledging that interstate federalism concerns are Cite as: 606 U. S. ____ (2025) 3

irrelevant under the Fifth Amendment, respondents argue that fair- ness and individual liberty considerations justify applying equivalent jurisdictional limitations. But the Court has observed in the Four- teenth Amendment context that interstate federalism concerns may be decisive. See World-Wide Volkswagen Corp., 444 U. S., at 294. Accord- ingly, while these “general fairness considerations” are relevant to the Fourteenth Amendment inquiry, they do not compel applying equiva- lent jurisdictional limits here. Pp. 13–14. (b) The Court does not delineate the full scope of the Federal Gov- ernment’s power to hale foreign defendants into U. S. courts. What- ever the Fifth Amendment’s outer limits, the PSJVTA—which ties fed- eral jurisdiction to conduct closely related to the United States that implicates important foreign policy concerns—does not transgress them. Pp. 14–21. (1) The Federal Government’s foreign affairs power must be exer- cised within constitutional bounds. See American Ins. Assn. v Gara- mendi, 539 U. S. 396, 416–417, n. 9. The Court accordingly reviews even legislation implicating foreign policy issues to ensure that it has not crossed a constitutional line. See Holder v. Humanitarian Law Project, 561 U. S. 1, 34. Here, in passing and signing the PSJVTA into law, Congress and the President made a considered judgment to sub- ject the PLO and PA to liability in U. S. courts as part of a comprehen- sive legal response to deterring international terrorism that threatens the life and limb of American citizens. The PSJVTA reflects the polit- ical branches’ balanced judgment of competing concerns over national security, foreign affairs, and fairness to these defendants—entities with which the Federal Government has complex, longstanding rela- tionships in which concerns over terrorism have been paramount. The PSJVTA is suitably limited to these ends. It does not broadly expose respondents to myriad civil actions, but applies only to ATA cases. The Federal Government may craft a narrow jurisdictional pro- vision ensuring Americans injured or killed by acts of terror have an adequate forum in which to vindicate their right to ATA compensation. The statute’s jurisdictional predicates are likewise narrow.

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