Lelchook v. Islamic Republic of Iran

199 F. Supp. 3d 314, 2016 U.S. Dist. LEXIS 104922, 2016 WL 4203415
CourtDistrict Court, D. Massachusetts
DecidedAugust 9, 2016
DocketCivil Action No. 15-13715-PBS
StatusPublished
Cited by2 cases

This text of 199 F. Supp. 3d 314 (Lelchook v. Islamic Republic of Iran) is published on Counsel Stack Legal Research, covering District Court, D. Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lelchook v. Islamic Republic of Iran, 199 F. Supp. 3d 314, 2016 U.S. Dist. LEXIS 104922, 2016 WL 4203415 (D. Mass. 2016).

Opinion

MEMORANDUM AND ORDER

Saris, Chief Judge.

INTRODUCTION

This case involves the death of David Lelehook, an American citizen, killed by a rocket fired by Hezbollah into northern Israel during the summer of 2006. Plaintiffs, the decedent’s relatives, allege that the defendants—Iran, the Central Bank of the Islamic Republic of Iran, Bank Saderat Iran, and Bank Saderat, PLC—helped funnel money to Hezbollah. Plaintiffs have brought claims under the Foreign Sovereign Immunities Act, 28 U.S.C. § 1602 et seq., and the Antiterrorism Act, 18 U.S.C. § 2331 et seq., as well as supplemental tort claims under Israeli and Massachusetts law.

Defendant Bank Saderat, PLC (BSPLC), has moved tp transfer this case under 28 U.S.C. § 1404(a) to the District of Columbia. After hearing and supplemental briefing, the Court concluded that it must find, that the District of Columbia has personal jurisdiction over BSPLC before transferring the case there. Docket No. 54. Both parties argue that the District Court for the District of Columbia lacks personal jurisdiction over BSPLC. Nonetheless, BSPLC maintains the equitable doctrine of judicial estoppel provides an alternative basis for transfer. Finding that judicial estoppel does not apply here, the Court DENIES the defendant’s motion to transfer (Docket No. 21).

FACTUAL BACKGROUND

The following facts are undisputed unless otherwise noted,

I. The Present Case

Between July 12 and August 14, 2006, Hezbollah1 fired thousands of rockets into northern Israel. On August 2, 2006, one of these rockets killed David Lelehook, a 52-year-old American citizen, while he was riding his bicycle in Kibbutz Saar. Plaintiffs here are the estate, widow, daughters, brother, and mother of Mr. Lelehook.2

Defendants are the Islamic Republic of Iran (Iran), the Central Bank of the Islamic Republic of Iran (CBI), Bank Saderat Iran (BSI), and Bank Saderat, PLC (BSPLC). CBI is a political subdivision of Iran and its central bank. BSI is a bank incorporated in Iran and one of the coun[316]*316try’s largest commercial banks. At the time of the rocket attack in question, BSI was wholly owned and controlled by the Iranian government.3 BSPLC is a bank incorporated in England and Wales, and is a wholly-owned subsidiary of BSI. The plaintiffs allege—and BSPLC disputes— that the defendants provided extensive, material support and resources to Hezbollah that enabled it to fire the rocket that killed Mr. Lelchook. Specifically, the plaintiffs assert that Iran utilizes CBI, BSI, and BSPLC to transfer funds to its terrorist proxies, including Hezbollah.

The plaintiffs’ complaint alleges seven separate counts. Counts I and II are against Iran and CBI, and allege violations of the Foreign Sovereign Immunities Act, 28 U.S.C. § 1602 et seq. (FSIA). Counts III and IV are against BSI and BSPLC, and allege violations of the Antiterrorism Act, 18 U.S.C. § 2331 et seq. (ATA). Counts V and VI are against all four defendants, and allege violations of Israeli tort law. Count VII is against all four defendants, and alleges a violation of Massachusetts tort law.

Plaintiffs have attempted service on all four defendants. BSPLC is the sole defendant moving to transfer venue. None of the other defendants answered or filed any other motion. The Clerk has entered notices of default as to BSI (Docket No. 44) and CBI (Docket No. 65). The Court has not entered a default judgment against any defendant.

II. The D.C. Litigation

On July 9, 2010, the same plaintiffs sued the same defendants over the death of the same individual in the District of Columbia. See Lelchook v. Cent. Bank of the Islamic Republic of Iran, Civ. No. 10-1184 (RCL) (D.D.C. Aug. 20, 2013) (“Lelchook I”). In that case, the plaintiffs brought the same claims as those brought here: FSIA claims, ATA claims, and Israeli tort claims.

While the plaintiffs’ claims were pending in Lelchook I, another group of plaintiffs sued the same four defendants: Iran, CBI, BSI, and BSPLC. See Kaplan v. Cent. Bank of the Islamic Republic of Iran, 961 F.Supp.2d 185, 190 (D.D.C.2013). The claims at issue in Kaplan involved different rocket attacks during the same 34-day conflict along the border between Israel and Lebanon. Id. The plaintiffs brought FSIA, ATA, and Israeli tort law claims. Id at 190-91. The court dismissed all claims against BSPLC and BSI, including the same claims against BSPLC at issue here: that BSPLC had violated the ATA by aiding and abetting, or directly engaging in, international terrorism. Id. at 206.

The Kaplan court rested its holding on the ATA’s “act of war” exception. Id at 199-201. The ATA precludes liability for an “act of war.” 18 U.S.C. § 2336(a) (“No action shall be maintained ... for injury or loss by reason of an act of war.”). Section 2331(4)(C) defines an “act of war” as “any act occurring in the course of ... armed conflict between military forces of any origin.” The court concluded that Israel and Hezbollah were engaged in “armed conflict” during the 34-day cross-border fighting in July and August of 2006, and that the rocket attacks were launched “in the course of’ that conflict. Kaplan, 961 F.Supp.2d at 203. The court then decided that, at least in the context of these attacks, Hezbollah was a “military force” for purposes of § 2331(4)(C). Id. at 204. The court acknowledged that Hezbollah is also a terrorist group, but that here it engaged [317]*317in “sustained combat” with Israel’s military and provoked that military’s invasion of Lebanon, “ultimately agreeing to a U.N.-brokered cease fire with” Israel’s military. Id. at 204. In that context, Hezbollah—which can alternatively be described as a “non-national paramilitary force, a terrorist group, and a part of the Lebanese government”—was a “military force” during the Israel-Lebanon war. Id. Having determined the applicability of the ATA’s “act of war” exception, the Kaplan court then dismissed the plaintiffs’ claims against BSPLC. Id. The court did not discuss whether it had personal jurisdiction over any of the defendants.

Citing its decision in Kaplan, the Lel-chook I court dismissed “all of plaintiffs’ claims against defendants BSI and BSPLC.” Lelchook I, slip op. at 2. Specifically, the court dismissed “plaintiffs’ FSIA claims against BSI,” “all of plaintiffs’ ATA claims” against BSPLC, and all “Israeli Tort claims against BSI and BSPLC.” Id.4 It did not address personal jurisdiction.

DISCUSSION

I. Parties’ Arguments

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Related

Lelchook v. Islamic Republic of Iran
224 F. Supp. 3d 108 (D. Massachusetts, 2016)

Cite This Page — Counsel Stack

Bluebook (online)
199 F. Supp. 3d 314, 2016 U.S. Dist. LEXIS 104922, 2016 WL 4203415, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lelchook-v-islamic-republic-of-iran-mad-2016.