O'Neill v. Garland

CourtDistrict Court, District of Columbia
DecidedDecember 5, 2022
DocketCivil Action No. 2021-1288
StatusPublished

This text of O'Neill v. Garland (O'Neill v. Garland) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
O'Neill v. Garland, (D.D.C. 2022).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

CHRISTINE I. O’NEILL, et al.,

Plaintiffs, v. Civil Action No. 21-1288 (JEB) MERRICK B. GARLAND, et al.,

Defendants.

MEMORANDUM OPINION

In 2015, Congress established the United States Victims of State Sponsored Terrorism

Fund, which draws largely from sanctions penalties to compensate those who have obtained

judgments against foreign countries for acts of state-sponsored terrorism. Plaintiffs are 9/11-

related claimants, who, for the count that remains in this case, became eligible to draw payments

from the Fund only in the third round of distributions. They bring this proposed class action

under the Administrative Procedure Act to challenge the method for calculating payments

devised by the Special Master of the Fund. Such method, they believe, unlawfully penalizes

those who did not participate in the first two rounds. Plaintiffs therefore ask this Court to

mandate additional payments to similarly situated third-round claimants. Government

Defendants not surprisingly object, and they now move to dismiss for lack of jurisdiction or, in

the alternative, for summary judgment.

The Court ultimately agrees with the Government that it is powerless to entertain the

merits of Plaintiffs’ claim. Congress expressly and broadly precluded judicial review of

decisions by the Special Master with regard to compensation from the Fund. As this lawsuit at

1 bottom challenges such decisions, it falls squarely within that preclusion provision. The Court,

accordingly, will dismiss this action for lack of subject-matter jurisdiction.

I. Background

A. Statutory Background

Under the Foreign Sovereign Immunities Act, courts can order state sponsors of terrorism

to pay damages to their victims. See 28 U.S.C. § 1605A. Congress has facilitated victims’

ability to collect these damages in multiple ways, including by setting up the United States

Victims of State Sponsored Terrorism Fund in 2015. See Compensation for United States

Victims of State Sponsored Terrorism Act, Pub. L. No. 114-113, § 404, 129 Stat. 2242, 3007

(2015). Our legislature has subsequently amended the Terrorism Act twice — first in 2019 and

then in 2020 — with ramifications for the Fund that are discussed below. See United States

Victims of State Sponsored Terrorism Fund Clarification Act, Pub. L. No. 116-69, § 1701, 133

Stat. 1134, 1140–43 (2019); Consolidated Appropriations Act, 2021, Pub. L. No. 116-260,

§ 1705, 134 Stat. 1182, 3292 (2020).

When setting up the program in 2015, Congress initially appropriated $1.025 billion to

the Fund. See Pub. L. No. 114-113, § 404(e)(5). It then directed that future funding come from

certain forfeiture proceeds, penalties, and fines from federal civil and criminal matters involving

state sponsors of terrorism. Id. § 404(e)(2). Of those funding streams, all of the proceeds of

qualifying criminal cases and 75% of the proceeds from qualifying civil penalties (initially 50%

before Congress increased the percentage in the 2019 Clarification Act) are deposited into the

Fund. Id.; Pub. L. No. 116-69, § 1701(b)(1)(C)(ii).

To “administer the compensation program,” Congress directed the Attorney General to

appoint a Special Master. See 34 U.S.C. § 20144(b)(1)(A). The Special Master is charged with

2 soliciting claims, determining which are eligible, and dispensing compensation in accordance

with the Terrorism Act’s prescriptions. See ECF No. 26 (MTD) at 5. More specifically, the

statute mandates that she first cap claims at $20 million, see 34 U.S.C. § 20144(d)(3)(A)(ii)(I),

then divide all available funds among the claimants “on a pro rata basis, based on the amounts

outstanding and unpaid on eligible claims.” Id. § 20144(d)(3)(A)(i)(I), (III). As for timing, the

Terrorism Act contemplated the Special Master’s authorizing a first round of payments within a

year of December 18, 2015, a second round less than two years thereafter, and subsequent rounds

annually, so long as money remained available. See Pub. L. No. 114-113, §§ 20144(d)(2)–(4).

As of this writing, there have been three such distributions, with the Special Master expected to

authorize round-four payments on eligible claims by January 1, 2023. See U.S. Victims of State

Sponsored Terrorism Fund, http://www.usvsst.com [https://perma.cc/LKF8-PPZ4].

Among those eligible for payments from the Fund are individuals with a final district-

court judgment holding a designated state sponsor of terrorism liable for damages from an injury

arising from torture, extrajudicial killing, aircraft sabotage, hostage taking, or providing material

support for these actions. See 34 U.S.C. § 20144(c), (j). For the first four years of the Fund’s

existence, 9/11-related claimants who had participated in the separate 9/11 Victims

Compensation Fund were excluded from receiving payments. See Pub. L. No. 114-113,

§ 404(d)(3)(ii). Congress later removed that limitation in the 2019 Clarification Act, opening the

door for otherwise eligible claimants who had participated in the 9/11 VCF to bring claims to the

Fund. As a result, for third-round and future distributions, the Clarification Act requires that the

Fund divide the total amount of available funds evenly between 9/11-related claimants (including

VCF award recipients) and non-9/11-related claimants (including other judgment holders and

Iran hostage-crisis victims and their families). See Pub. L. No. 116-69, § 1701(b)(1)(C)(i)

3 (codified at 34 U.S.C. § 20144(d)(3)(A)(i)(I)). Within each of these two pools of claimants, the

Fund would continue to distribute awards pro rata. See 34 U.S.C. § 20144(d)(3)(A)(i)(II), (III).

B. Procedural Background

Plaintiffs are 9/11-related claimants who bring this proposed class action on behalf of all

such claimants, including those who received payments in the first and second distributions as

well as those who, due to their prior participation in the 9/11 VCF, were eligible to receive

payments beginning only with the third distribution. See ECF No. 1 (Compl.), ¶¶ 26–33. As

explained below, given the dismissal of one cause of action, the only claim that survives

concerns this latter group of Plaintiffs. See id., ¶ 27. They principally contend that the Special

Master violated the Terrorism Act by establishing a payment methodology — reflected in a

written explanation that is made available to claimants in connection with each round of

payments — that improperly results in underpayments to 9/11-related claimants newly eligible to

draw from the Fund in the third round. See U.S. Victims of State Sponsored Terrorism Fund,

Payment Information, http://www.usvsst.com/payment.php [https://perma.cc/P5VA-A9H2].

This error, Plaintiffs argue, stemmed from the Special Master’s calculating payments from the

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Abbott Laboratories v. Gardner
387 U.S. 136 (Supreme Court, 1967)
Heckler v. Ringer
466 U.S. 602 (Supreme Court, 1984)
Block v. Community Nutrition Institute
467 U.S. 340 (Supreme Court, 1984)
Bowen v. Michigan Academy of Family Physicians
476 U.S. 667 (Supreme Court, 1986)
K Mart Corp. v. Cartier, Inc.
486 U.S. 281 (Supreme Court, 1988)
Lujan v. Defenders of Wildlife
504 U.S. 555 (Supreme Court, 1992)
Sparrow, Victor H. v. United Airlines Inc
216 F.3d 1111 (D.C. Circuit, 2000)
United States v. Mala
7 F.3d 1058 (First Circuit, 1993)
Victor Herbert v. National Academy of Sciences
974 F.2d 192 (D.C. Circuit, 1992)
Schneider v. Feinberg
345 F.3d 135 (Second Circuit, 2003)
Grand Lodge of the Fraternal Order of Police v. Ashcroft
185 F. Supp. 2d 9 (District of Columbia, 2001)
Murray Braun v. United States
31 F.4th 793 (D.C. Circuit, 2022)
Hekmati v. United States
51 F.4th 1066 (Federal Circuit, 2022)

Cite This Page — Counsel Stack

Bluebook (online)
O'Neill v. Garland, Counsel Stack Legal Research, https://law.counselstack.com/opinion/oneill-v-garland-dcd-2022.