Pautsch v. Islamic Republic of Iran

District Court, District of Columbia·Decided August 18, 2025·No. Civil Action No. 2020-3859·Published

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

JACOB PAUTSCH, et al.,

Plaintiffs,

v. Civil Action No. 20-3859 (JEB)

ISLAMIC REPUBLIC OF IRAN, et al.,

Defendants.

MEMORANDUM OPINION

The remaining Plaintiffs here are seven servicemembers and civilian contractors, as well

as two of their family members, who sued the Islamic Republic of Iran and the Syrian Arab

Republic under the Foreign Sovereign Immunities Act for providing material support to

terrorism. As survivors of terrorist attacks in Iraq from 2004 to 2009, Plaintiffs seek to recover

for the injuries sustained as a result of those attacks. The Court entered a default judgment

against Defendants last year. It now assesses damages.

I. Procedural Background

This litigation began in December 2020 when Plaintiffs filed their original Complaint.

See ECF No. 1 (Compl.). After almost two years passed with no response from either Iran or

Syria, the Clerk’s Office issued defaults against both in September 2022. See ECF Nos. 25 (Iran

Def.); 26 (Syria Def.). The Court then issued a default judgment as to liability with respect to the

estate and family members of one servicemember who had been killed in an attack, Jacob

Pautsch, and the family members of those who were injured in other attacks. Pautsch v. Islamic

Republic of Iran, 2023 WL 8433216, at *5–6 (D.D.C. Dec. 5, 2023). The Court found that the

1 other surviving servicemembers had failed to state a theory of liability that would enable them to

recover. Id. at *6.

Plaintiffs then took a second bite at the apple by filing an Amended Complaint in

February 2024. See ECF No. 40 (Am. Compl.). Defendants again defaulted. See ECF No. 42

(Second Def.). Before the Court had an opportunity to determine whether Plaintiffs had stated a

valid theory of recovery in their second attempt, however, the D.C. Circuit issued a decision that

called into question whether the FSIA in fact waived Defendants’ immunity over the survivors’

claims. See Borochov v. Islamic Republic of Iran, 94 F.4th 1053, 1061–67 (D.C. Cir. 2024). The

Court, with the benefit of supplemental briefing from Plaintiffs, ultimately concluded that the

FSIA does waive immunity for seven out of the eight survivors who had originally brought suit.

See ECF No. 60 (Second Def. Judgment Mem. Op.) at 10. It also found that Plaintiffs had

sufficiently articulated a cause of action under the FSIA. Id. at 12. It accordingly issued a

default judgment on liability as to those seven servicemembers and contractors. Id. The Court

also awarded damages to Pautsch’s estate and family members. See ECF No. 68 (Pautsch

Damages Order).

Plaintiffs have now submitted Proposed Findings of Fact and Conclusions of Law on

Damages for the seven Plaintiffs addressed by that default judgment: Charles J. Shaffer, Brian

Neuman, Wallace Byars, III, Dennis O’Malley, Jason Goldsmith, Richard Vessell, and Thomas

Vriens. See ECF No. 67-1 (PFFCL). The Court also addresses the claims of Charles L. Shaffer,

Jr. and Erika Neuman, family members of two of the servicemember Plaintiffs. It will now

determine the amount of damages owed to each.

2 II. Legal Standard

Plaintiffs seek three types of damages: economic-loss damages, direct-injury damages,

and solatium damages. Economic-loss damages “may be proven by the submission of a forensic

economist’s expert report.” Roth v. Islamic Republic of Iran, 78 F. Supp. 3d 379, 402 (D.D.C.

2015). In determining the amount of such damages based on lost future earnings and other

benefits, “the Court shall take account of the reasonableness and foundation of the assumptions

relied upon by the expert.” Id.

That leaves direct-injury and solatium damages. The former are intended to compensate

attack survivors based on factors including “the severity of the pain immediately following the

injury, the length of hospitalization, and the extent of the impairment that will remain with the

victim for the rest of his or her life.” O’Brien v. Islamic Republic of Iran, 853 F. Supp. 2d 44, 46

(D.D.C. 2012) (quotation marks omitted); accord Wultz v. Islamic Republic of Iran, 864 F. Supp.

2d 24, 37 (D.D.C. 2012). Over the years, courts have developed a general framework for

awarding direct-injury damages based on the guiding principle that “when calculating damages

awards,” courts should “take pains to ensure that individuals with similar injuries receive similar

awards.” Owens v. Republic of Sudan, 71 F. Supp. 3d 252, 259 (D.D.C. 2014) (quotation marks

omitted). They begin “with the baseline assumption that persons suffering substantial injuries in

terrorist attacks are entitled to $5 million in compensatory damages.” Wultz, 864 F. Supp. 2d at

37–38 (emphasis added). Such substantial injuries include “compound fractures” and “severe

flesh wounds.” Valore v. Islamic Republic of Iran, 700 F. Supp. 2d 52, 84 (D.D.C. 2010); see

also Peterson v. Islamic Republic of Iran (Peterson II), 515 F. Supp. 2d 25, 54 (D.D.C. 2007).

Courts deviate downwards and award damages between $2 and $3 million for less severe

physical injuries, such as “where victims suffered only minor shrapnel injuries or minor injury

3 from small-arms fire” in addition to psychological trauma. See Valore, 700 F. Supp. 2d at 84;

Peterson II, 515 F. Supp. 2d at 54–55.

Most useful here is the more granulated framework for direct physical injuries that Judge

John D. Bates of our district articulated in Wamai v. Republic of Sudan, 60 F. Supp. 3d 84

(D.D.C. 2014), aff’d in part, vacated in part on other grounds sub nom. Owens v. Republic of

Sudan, 864 F.3d 751, 825 (D.C. Cir. 2017), vacated sub nom. Opati v. Republic of Sudan, 590

U.S. 418 (2020). In Wamai, Judge Bates awarded damages to victims of the 1998 bombings of

the U.S. Embassies in Kenya and Tanzania. Recognizing that “[a] great number of plaintiffs

were injured in the bombings” and that the plaintiffs’ injuries “span[ned] a broad range,” id at 91,

he identified six general categories of plaintiffs. For those who suffered little to no physical

injury, the court awarded $1.5 million. Id. at 92. The court increased that award to $2 million

for plaintiffs who suffered injuries “such as lacerations and contusions caused by shrapnel,” id.,

and to $2.5 million for people “who suffered more serious physical injuries, such as broken

bones, head trauma, some hearing or vision impairment, or impotence.” Id. Moving upward,

those “with even more serious injuries,” such as “spinal injuries not resulting in paralysis, more

serious shrapnel injuries, head trauma, or serious hearing impairment,” received $3 million. Id.

Victims who suffered injuries similar to those for which other courts had awarded the “baseline”

of $5 million — including “vision impairment, many broken bones, severe shrapnel wounds or

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