Karadzic v. Gacki

District Court, District of Columbia·Decided July 28, 2025·No. Civil Action No. 2023-1226·Published

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

LJILJANA ZELEN KARADZIC, Plaintiff,

v.

Civil Action No. 23-cv-1226 (TSC)

LISA PALLUCONI, in her official capacity as Acting Director, Office of Foreign Assets Control, et al.,

Defendants.

MEMORANDUM OPINION

In 2020, Plaintiff Ljiljana Karadzic and her children petitioned the Office of Foreign Assets Control (“OFAC”) to be removed from its Specially Designated Nationals and Blocked Persons List (“SDN List”). In May 2023, they filed this action, claiming that OFAC had unreasonably delayed adjudicating their delisting request, Compl., ECF No. 1. In October 2023, OFAC denied their delisting request.

On November 9, 2023, after her children declined to pursue the litigation, Plaintiff filed an Amended Complaint, claiming OFAC unreasonably delayed adjudicating her delisting request (Count I) and unreasonably decided to deny her delisting request (Count II)—both in violation of the Administrative Procedure Act (“APA”)—and requested attorneys’ fees (Count III). Am. Compl. ¶¶ 42–53, ECF No. 13.

On September 20, 2024, the court granted Defendants’ Motion to Dismiss, ECF No. 19 (“Defs.’ Mot.”), and denied as moot Plaintiff’s Motion for Summary Judgment, ECF No. 16 (“Pl.’s MSJ”), finding that Count I was rendered moot when OFAC decided Plaintiff’s delisting request. Karadzic v. Gacki, No. 23-CV-1226 (TSC), 2024 WL 4253132, at *1, *4 (D.D.C. Sept. 20, 2024).

Plaintiff now moves for relief from judgment under Federal Rule of Civil Procedure 60(b)(1) of Count II.1 Pl.’s Mot. for Recons., ECF No. 31 (“Pl.’s Recons. Mot.”). Because the court did not address Count II in its Memorandum Opinion, the court will GRANT Plaintiff’s Motion for Reconsideration. But after re-consideration of the administrative record and the briefs, the court will DENY Plaintiff’s motion for summary judgment on Count II and will GRANT Defendants’ cross-motion for summary judgment as to Count II.

I. BACKGROUND

A. Historical Background The court set forth the relevant background in its September 2024 Memorandum Opinion.

Plaintiff is the wife of Radovan Karadzic—a founding member of the Serbian Democratic Party and former President of the Serbian Republic of Bosnia and Herzegovina. Am. Compl. ¶ 8. In 1995, he was indicted by the International Criminal Tribunal for the former Yugoslavia (“ICTY”) on two counts of genocide, five counts of crimes against humanity, and four counts of war crimes. AR77. He was “the subject of a massive international manhunt” until his arrest in Serbia in 2008. Am. Compl. ¶ 8; see AR74–75. He was ultimately tried, convicted, and sentenced to life imprisonment. AR77–79; AR93.

B. Statutory & Regulatory Background In 2003, President Bush issued Executive Order 13304 (“EO 13304”), which both provided an annex of individuals whose property and interests were blocked by the President and authorized the Secretary of the Treasury, in consultation with the Secretary of State, to block property and interests in property of persons they determine “have actively obstructed, or pose [a] significant

1 Because Plaintiff was not the “prevailing party,” she does not dispute the court’s denial of summary judgment on Count III. See Pl.’s Recons. Mot. at 3 n.1.

risk of actively obstructing . . . the Dayton Accords or the Conclusions of the Peace Implementation Conference” or “have materially assisted in, sponsored, or provided financial, material, or technological support for, or goods or services in support of . . . any person listed in or designated pursuant to this order.” Executive Order 13304: Termination of Emergencies with Respect to Yugoslavia and Modification of Executive Order 13219 of June 26, 2001, 68 Fed. Reg. 32315, 32316 (May 28, 2003). Radovan Karadzic was one of the individuals listed in the annex. Id. at 32319.

The Secretary of the Treasury’s authority under EO 13304 was delegated to OFAC, which maintains a list of individuals whose assets are blocked, known as the SDN List. 31 C.F.R. §§ 588.802, 501.807. Anyone on the list may “submit a petition for administrative reconsideration” of OFAC’s decision. Id. OFAC “conduct[s] a review of the request” and provides the requesting person with “a written decision.” Id. § 501.807(b)(3).

C. Factual & Procedural Background While Radovan Karadzic was still at large, Plaintiff and their two children—Aleksandar and Sonja—were placed on the SDN List because they were “suspected of helping” him “evade arrest.” Am. Compl. ¶¶ 9–10; see Compl. ¶¶ 6–7. In April 2020, they sought to have the decisions placing them on the list “reconsidered and rescinded” pursuant to 31 C.F.R. § 501.807. Am. Compl. ¶ 15; Compl. ¶ 12. Frustrated with the time it was taking to receive a response from OFAC, in May 2023, Plaintiff and her children filed this suit seeking declaratory and injunctive relief requiring OFAC to adjudicate their delisting requests. See Am. Compl. ¶ 28.

In October 2023, OFAC ultimately denied Plaintiff’s request concluding that she “actively obstructed or poses a significant risk of actively obstructing” the Dayton Accords or the Conclusions of the Peace Implementation Conference. Am. Compl. ¶¶ 29–30; see AR1–3.

Plaintiff subsequently filed an Amended Complaint without her children, once again challenging OFAC’s delay in adjudicating her request and the decision denying her request. See Am. Compl. ¶¶ 42–53. Plaintiff moved for summary judgment, and Defendants moved to dismiss, or, in the alternative, for summary judgment.

On September 20, 2024, the court granted Defendants’ motion to dismiss, finding that Count I was rendered moot when OFAC decided Plaintiff’s delisting request after this lawsuit was filed and dismissed Plaintiff’s motion for summary judgment as moot. Six days later, on September 26, 2024, Plaintiff moved for reconsideration pursuant to Federal Rule of Civil Procedure 60(b)(1), arguing that the court failed to address Count II in its Memorandum Opinion. Pl.’s Recons. Mot. at 1. Defendants respond that the court “reached the correct result in dismissing Plaintiff’s Amended Complaint,” but agree that Count II remains ripe for adjudication on the merits and thus do not oppose Plaintiff’s Rule 60(b) motion. See Defs.’ Resp. to Pl.’s Recons. Mot. at 2, ECF No. 32. Plaintiff also proposed minor factual corrections, which Defendants did not oppose and which are incorporated into this Memorandum Opinion.

II. LEGAL STANDARD

A. Motion for Reconsideration Under Federal Rule of Civil Procedure 60(b), a “court may relieve a party . . . from a final judgment” because of “mistake, inadvertence, surprise, or excusable neglect,” Fed. R. Civ. P. 60(b)(1), as well as “any other reason that justifies relief,” Fed. R. Civ. P. 60(b)(6). District courts have discretion over whether to grant Rule 60(b) motions. United Mine Workers of Am. 1974 Pension v. Pittston Co., 984 F.2d 469, 476 (D.C. Cir. 1993).

Federal Rule of Civil Procedure 59(e) provides that a party may move to “alter or amend a judgment . . . no later than 28 days after the entry of the judgment.” Fed. R. Civ. P. 59(e). “A

Rule 59(e) motion is discretionary and need not be granted unless the district court finds that there is an intervening change of controlling law, the availability of new evidence, or the need to correct a clear error or prevent manifest injustice.” Firestone v. Firestone, 76 F.3d 1205, 1208 (D.C. Cir. 1996) (internal quotation marks omitted). Courts will treat a motion for reconsideration under Rule 60(b) as a motion for reconsideration under Rule 59(e) if it has been filed within 28 days of the order at issue. Li v. Blinken, No. 22-CV-2331 (TSC), 2024 WL 5044581, at *2 (D.D.C. Sept. 23, 2024).

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