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

Opinions

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

Syllabus

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 Antiterrorism 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 international terrorism.” 18 U. S. C. §2333(a); see also §2333(d)(2) (permitting aiding and abetting liability). Respondents (defendants below) are the Palestine Liberation Organization (PLO) and Palestinian Authority (PA)—entities responsible for carrying out governmental functions for parts of the West Bank and Gaza Strip.

The question presented is whether the exercise of personal jurisdiction 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 specifically and provides that they “shall be deemed to have consented to personal jurisdiction” in ATA cases under two circumstances. §§2334(e)(1), (5). The first jurisdictional predicate relates to respondents ’ 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

PSJVTA could not, consistent with constitutional due process, establish 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 reasonably 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 resolving 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 Amendment 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 traditional 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 recognized , however, that the Amendments “were engrafted upon the Constitution 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 Asphalt 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 interstate 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 interstate federalism concerns do not apply to the Fifth Amendment’s limitations on the power of the Federal Government and the corollary authority 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 dramatically 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

irrelevant under the Fifth Amendment, respondents argue that fairness and individual liberty considerations justify applying equivalent jurisdictional limitations. But the Court has observed in the Fourteenth Amendment context that interstate federalism concerns may be decisive. See World-Wide Volkswagen Corp., 444 U. S., at 294. Accordingly , while these “general fairness considerations” are relevant to the Fourteenth Amendment inquiry, they do not compel applying equivalent jurisdictional limits here. Pp. 13–14.

(b) The Court does not delineate the full scope of the Federal Government ’s power to hale foreign defendants into U. S. courts. Whatever the Fifth Amendment’s outer limits, the PSJVTA—which ties federal 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 exercised within constitutional bounds. See American Ins. Assn. v Garamendi , 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 subject the PLO and PA to liability in U. S. courts as part of a comprehensive legal response to deterring international terrorism that threatens the life and limb of American citizens. The PSJVTA reflects the political 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 relationships 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 provision 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. The payments prong furthers the Federal Government’s longstanding policy of deterring payments that promote acts of overseas terror that may potentially injure or kill Americans. The activities prong, in predicating jurisdiction on respondents’ U. S. conduct, is a continuation of the Federal Government’s longstanding, nuanced policy governing the operations that respondents may conduct on U. S. soil. The PSJVTA thus ties jurisdiction to specific, narrow conduct directly implicating sensitive and ongoing concerns in respondents’ relationships with the United States. And the statute’s targeted applicability to only two enumerated nonsovereign foreign entities put the PLO and PA on full

notice that they could be subject to personal jurisdiction in ATA suits in U. S. courts. 18 U. S. C. §§2334(e)(1), (5). Pp. 14–19.

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