Schwartz v. Islamic Republic of Iran

CourtDistrict Court, District of Columbia
DecidedMay 18, 2022
DocketCivil Action No. 2018-1349
StatusPublished

This text of Schwartz v. Islamic Republic of Iran (Schwartz v. Islamic Republic of Iran) 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
Schwartz v. Islamic Republic of Iran, (D.D.C. 2022).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

RUTH SCHWARTZ, et al.,

Plaintiffs,

v. Civil Action No. 18-1349 (RDM)

ISLAMIC REPUBLIC OF IRAN,

Defendant.

MEMORANDUM OPINION

On November 19, 2015, Ezra Schwartz, Michael Benzakein, and Jason Geller, three

United States nationals spending a year abroad in Israel, were riding in a passenger van on their

way to a community service project when an operative from the Islamic Resistance Movement

(“Hamas”) pulled up alongside them and open fired with an Uzi submachine gun. Dkt. 29 at 10–

11; see also Dkt. 28-6 at 4 (Michael Benzakein Decl. ¶ 14); Dkt. 28-12 at 2 (Jason Geller Decl.

¶ 1). The Hamas operative fired a total of 75 bullets, killing Schwartz and injuring Benzakein

and Geller. Dkt. 29 at 11.

Plaintiffs—Schwartz’s estate, Benzakein, Geller, and family members of each of the

three victims—subsequently filed this suit against the Islamic Republic of Iran (“Iran”), alleging

that Iran “gave substantial aid, assistance and encouragement to Hamas . . . with the specific

intention of causing and facilitating the commission of acts of extrajudicial killing,” including

the November 2015 submachine gun attack. Dkt. 1 at 13 (Compl. ¶ 91). Plaintiffs effected

service on Iran on October 24, 2018, Dkt. 14 at 1, but Iran neither appeared nor answered

1 Plaintiffs’ complaint. Plaintiffs moved for default judgment, Dkt. 22, and this Court granted that

motion on November 30, 2020, concluding that Plaintiffs properly invoked the state-sponsored

terrorism exception to the Foreign Sovereign Immunities Act (“FSIA”), 28 U.S.C. § 1605A(a),

as well as the cause of action provided for by that same statute. Dkt. 29 at 31.

For assistance in evaluating Plaintiffs’ damages, the Court referred the case to a special

master, Deborah Greenspan, to prepare a report and recommendations regarding compensatory,

but not punitive, damages. See Dkt. 31. The Special Master’s resulting report lays out the

effects that the November 2015 attack had on each of the victims and their families and carefully

analyzes Plaintiffs’ claims for damages under the applicable framework for state-sponsored

terrorism cases. See Dkt. 32. The Court thanks the Special Master for her excellent assistance.

In response to the Special Master’s report, Plaintiffs filed a notice indicating they have “no

objections” to her recommendations. Dkt. 34 at 1.

As explained below, the Court adopts the Special Master’s proposed findings and

recommendations and also awards punitive damages to Plaintiffs.

ANALYSIS

As an initial matter, the Court agrees with, and adopts without modification, the Special

Master’s findings of fact, all of which are well-explained and supported by the record. Tracking

the Special Master’s report, the Court will first review her conclusions with respect to the

economic and non-economic damages that those findings support and will then turn to the

question of punitive damages, which (consistent with the Court’s referral) is not addressed in the

Special Master’s report. The Court concludes with the question of prejudgment interest.

2 A. Economic Damages

“Section 1605A explicitly provides that foreign state-sponsors of terrorism are liable to

victims for economic losses stemming from injuries or death sustained as a result of the foreign

state’s conduct.” Thuneibat v. Syrian Arab Republic, 167 F. Supp. 3d 22, 48 (D.D.C. 2016)

(citing 28 U.S.C. § 1605A(c)). Traditionally, plaintiffs may prove economic losses by the

submission of a forensic economist’s expert report. See Roth v. Islamic Republic of Iran, 78 F.

Supp. 3d 379, 402 (D.D.C. 2015). When evaluating an expert’s calculations, the Court must

consider the “reasonableness and foundation of the assumptions relied upon by the expert.” Id.

at 402 (citing Reed v. Islamic Republic of Iran, 845 F. Supp. 2d 204, 214 (D.D.C. 2012)).

Only the estate of Ezra Schwartz seeks economic damages here. In support of this claim,

the estate has submitted an economic loss computation by Steven Wolf, a certified public

accountant who has provided testimony as either an accounting or economic damages expert (or

both) in 19 cases in recent years, including several FSIA cases. Dkt. 27 at 11–12 (Wolf Decl.,

Ex. A). Wolf represents that he has also testified as an accounting and valuation expert

regarding economic damages for the September 11th Victim Compensation Fund. Id. at 1–2

(Wolf Decl. ¶ 2). As the Special Master observes, Wolf holds a Master of Business

Administration from Temple University and is currently a partner with the Cherry Bekaert LLP,

a large national accounting firm. Dkt. 32 at 14. In the view of the Special Master, Wolf is

qualified as an expert for the purpose of determining economic loss. Id. The Court agrees.

As for Wolf’s findings, the Special Master found that his assumptions were “reasonable”

and that his analysis was “consistent with generally accepted practices for the computation of

lost earnings and [were] based on reasonable and reliable data.” Id. at 17–18. Accordingly, the 3 Special Master recommends that the Court adopt Wolf’s proposal as the award of economic loss

for the estate of Ezra Schwartz. Id. at 18. The Court agrees and will adopt his recommendations

and award economic loss damages to the estate of Ezra Schwartz in the amount of $3,676,050.

B. Non-Economic Damages

Benzakein and Geller seek non-economic damages for the pain and suffering that resulted

from the November 2015 attack, while family members of all three victims seek solatium

damages. The Court addresses each request in turn.

1. Pain and Suffering for Michael Benzakein

Plaintiff Michael Benzakein seeks $1.5 million in non-economic damages for his pain

and suffering resulting from the November 2015 attack. Dkt. 24 at 23. In assessing this request,

the Special Master notes that, although Benzakein “suffered minor shrapnel injuries,” he “saw

his roommate and friend”—Schwartz—“killed by a bullet wound to the head” during the attack.

Dkt. 32 at 20. This experience, according to the Special Master, has had a profound impact on

Benzakein, who “suffered from and continues to suffer from emotional distress and

psychological injuries,” as evidenced by his “uncontroverted testimony . . . that he has changed

fundamentally” as a result of the attack. Id. (citing Dkt. 28-6 at 10–11 (Michael Benzakein Decl.

¶¶ 41, 45)). In light of these ongoing injuries, the Special Master concludes that Benzakein’s

request “is reasonable and consistent with relevant case law,” and recommends awarding him

$1.5 million for his pain and suffering. Id.

The Court agrees. Placing a dollar amount on these kinds of harms “can be difficult.”

Moradi v. Islamic Republic of Iran, 77 F. Supp. 3d 57, 70 (D.D.C. 2015) (quotation marks

omitted). There is no market, economic study, or scientific analysis that the Court can employ. 4 Courts do find significant guidance, however, in the principle that “individuals with similar

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