John D. McKeel Jr. v. The Islamic Republic of Iran and the United States of America

722 F.2d 582, 1983 U.S. App. LEXIS 14044
CourtCourt of Appeals for the Ninth Circuit
DecidedDecember 30, 1983
Docket82-5111, 82-5114 to 82-5117 and 82-5417
StatusPublished
Cited by92 cases

This text of 722 F.2d 582 (John D. McKeel Jr. v. The Islamic Republic of Iran and the United States of America) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
John D. McKeel Jr. v. The Islamic Republic of Iran and the United States of America, 722 F.2d 582, 1983 U.S. App. LEXIS 14044 (9th Cir. 1983).

Opinion

*585 SNEED, Circuit Judge:

On November 4, 1979, Iranian militants seized the diplomatic and military personnel attached to the United States Embassy in Tehran. The Americans were held hostage in violation of international law for over fourteen months. See Case Concerning United States Diplomatic and Consular Staff in Tehran (U.S. v. Iran), 1980 I.C.J. 3; see also Dames & Moore v. Regan, 453 U.S. 654, 662-66, 101 S.Ct. 2972, 2977-79, 69 L.Ed.2d 918 (1981) (discussing agreement between United States and Iran that led to release of the hostages).

This action was brought by twelve former hostages and by wives of two ex-hostages. Plaintiffs seek rédress in tort against Iran for damages suffered during and as a result of their Iranian captivity, as well as declaratory relief against the United States. Plaintiffs base their allegation of subject matter jurisdiction over Iran on 28 U.S.C. §§ 1331 and 1332, and on the Foreign Sovereign Immunities Act (“FSIA”), 28 U.S.C. § 1330(a), and over the United States on 28 U.S.C. §§ 1331 and 1361.

The claims of thirteen of the plaintiffs were consolidated before Judge Gray of the District Court for the Central District of California, and Judge Hall of that district heard the fourteenth case. Both judges granted the rtiotion of the United States, appellee here, to dismiss for lack of subject matter jurisdiction, and for failure to state a claim on which relief could be granted. 1

We affirm the district court’s dismissal of the actions for lack of subject matter jurisdiction. 2 In addition, we reject appellants’ suggestion that we remand this case to' determine whether the executive agreements negotiated by the President to obtain the hostages’ release constitute a valid claim against the United States for a “taking” of property without just compensation, because the proper forum to adjudicate that issue is the United States Claims Court. Finally, we deny appellants’ motion to transfer this case to that court.

I.

JURISDICTION OYER IRAN

Appellants assert federal question and diversity jurisdiction over the Islamic Republic of Iran, 28 U.S.C. §§ 1331 and 1332, as well as jurisdiction derived from the Foreign Sovereign Immunities Act, id. § 1330(a). We hold that there is no basis under sections 1331 and 1332 or the FSIA for jurisdiction over Iran.

A. Federal Question and Diversity Jurisdiction

Congress has the power through the Arising Under and Diversity Clauses of Article III of the Constitution to confer jurisdiction on the federal courts to hear suits such as the present one, where United States citizens seek redress against a foreign state defendant. Verlinden B.V. v. Central Bank of Nigeria, - U.S. -, 103 S.Ct. 1962, 1970 n. 18, 1973, 76 L.Ed.2d 81 (1983). However, it has not done so by enacting 28 U.S.C. §§ 1331 and 1332. These sections do not provide a basis for jurisdiction over Iran. Congress has vested *586 exclusive jurisdiction over suits against foreign state defendants in the FSIA.

1. Section 1331

Although section 1331 grants district courts federal question jurisdiction over all cases “arising under” federal law, cf. Osborn v. Bank of the United States, 22 U.S. (9 Wheat.) 738, 739, 6 L.Ed. 204 (1824), the scope of this statutory “arising under” jurisdiction is limited by the well-pleaded complaint rule. This rule provides that a case arises under federal law for the purposes of section 1331 if the federal law issue must be presented as a matter of sound pleading in the complaint. See Louisville & Nashville R.R. Co. v. Mottley, 211 U.S. 149, 152, 29 S.Ct. 42, 43, 53 L.Ed. 126 (1908). It is not satisfied when the federal question is merely an assertion “that federal law deprives the defendant of a defense he may raise ..., or that a federal defense the defendant may raise is not sufficient to defeat the claim.” Franchise Tax Board v. Construction Laborers Vacation Trust for Southern California, -U.S. -, 103 S.Ct. 2841, 2846-47, 77 L.Ed.2d 420 (1983).

The federal question presented by appellants here is such an assertion. Appellants assert that the FSIA waives Iran’s immunity from suit. The FSIA, however, does not affect the substantive law of liability. See First National City Bank v. Banco Para el Comercio Exterior de Cuba, - U.S.-, 103 S.Ct. 2591, 2597, 77 L.Ed.2d 46 (1983). That liability — were a court to reach the merits of appellants’ claims— would be determined by state or Iranian law. It follows that the appellants’ allegation that the FSIA deprives Iran of a sovereign immunity defense to this action does not constitute a well-pleaded complaint under section 1331, Franchise Tax Board, 103 S.Ct. at 2846-47, and therefore does not provide a basis for statutory “arising under” jurisdiction. 3 Cf. Ruggiero v. Compania Peruana de Vapores, 639 F.2d 872, 876 (2d Cir.1981); Hanoch Tel-Oren v. Libyan Arab Republic, 517 F.Supp. 542, 545-48 (D.D.C.1981).

2. Section 1332

Section 1332(a)(2) presently gives the district courts jurisdiction over civil actions between “citizens of a State and citizens or subjects of a foreign state.” Before the adoption of the FSIA, section 1332(a)(2) also extended district court jurisdiction to suits between “citizens of a State and foreign states.” 62 Stat. 869, 930 (1948). However, Congress, as part of the FSIA, removed this jurisdiction from section 1332, and placed it in a new section, 1330. 4 H.R. Rep. No. 1487, 94th Cong., 2d Sess. 14, reprinted in 1976 U.S.Code Cong. & Ad.News 6604, 6613. Moreover, the legislative history of the FSIA notes that section 1330 was enacted to promote “uniformity in decision,” id. at 13, 1976 U.S.Code Cong. &

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Bluebook (online)
722 F.2d 582, 1983 U.S. App. LEXIS 14044, Counsel Stack Legal Research, https://law.counselstack.com/opinion/john-d-mckeel-jr-v-the-islamic-republic-of-iran-and-the-united-states-of-ca9-1983.