Sokolow v. Palestine Liberation Organization

835 F.3d 317, 2016 U.S. App. LEXIS 16089
CourtCourt of Appeals for the Second Circuit
DecidedAugust 31, 2016
Docket15-3135
StatusPublished
Cited by202 cases

This text of 835 F.3d 317 (Sokolow v. Palestine Liberation Organization) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sokolow v. Palestine Liberation Organization, 835 F.3d 317, 2016 U.S. App. LEXIS 16089 (2d Cir. 2016).

Opinion

*322 JOHN G. KOELTL, District Judge:

In this case, eleven American families sued the Palestine Liberation Organization (“PLO”) and the Palestinian Authority (“PA”) (collectively, “defendants”) 1 under the Anti-Terrorism Act (“ATA”), 18 U.S.C. § 2333(a), for various terror attacks in Israel that killed or wounded the plaintiffs-appellees-cross-appellants (“plaintiffs”) or their family members. 2

The defendants repeatedly argued before the District Court for the Southern District of New York that the court lacked personal jurisdiction over them in light of their minimal presence in, and the lack of any nexus between the facts underlying the plaintiffs’ claims and the United States. The district court (Daniels, J.) concluded that it had general personal jurisdiction over the defendants, even after the Supreme Court narrowed the test for general jurisdiction in Daimler AG v. Bauman, - U.S. -, 134 S.Ct. 746, 187 L.Ed.2d 624 (2014). See Sokolow v. Palestine Liberation Org., No. 04-cv-397 (GBD), 2014 WL 6811395, at *2 (S.D.N.Y. Dec. 1, 2014); see also Sokolow v. Palestine Liberation Org., No. 04-cv-397 (GBD), 2011 WL 1345086, at *7 (S.D.N.Y. Mar. 30, 2011).

After a seven-week trial, a jury found that the defendants, acting through their employees, perpetrated the attacks and that the defendants knowingly provided material support to organizations designated by the United States State Department as foreign terrorist organizations. The jury awarded the plaintiffs damages of $218.5 million, an amount that was trebled automatically pursuant to the ATA, 18 U.S.C. § 2333(a), bringing the total award to $655.5 million.

On appeal, the defendants seek to overturn the jury’s verdict by arguing that the United States Constitution precludes the exercise of personal jurisdiction over them. In the alternative, the defendants seek a new trial, arguing that the district court abused its discretion by allowing certain testimony by two expert witnesses. The plaintiffs cross-appeal, asking-this Court to reinstate non-federal claims that the district court dismissed, and reinstate the claims of two plaintiffs for which the district court found insufficient evidence to submit to the jury.

We conclude that the district court erred when it concluded it had personal jurisdiction over the defendants with respect to the claims at issue in this action. Therefore, we VACATE the judgment of the district court and REMAND the case to the district court with instructions to DISMISS the case for want of personal jurisdiction. Accordingly, we do not consider the defendants’ other arguments on appeal or the plaintiffs’ cross-appeal, all of which are now moot.

I.

A.

The PA was established by the 1993 Oslo Accords as the interim and non-sovereign government of parts of the West Bank and the Gaza Strip (collectively referred to here as “Palestine”). The PA is headquartered in the city of Ramallah in the West Bank, where the Palestinian President and the PA’s ministers reside.

*323 The PLO was founded in 1964. At all relevant times, the PLO was headquartered in Ramallah, the Gaza Strip, and Amman, Jordan. Because the Oslo Accords limit the PA’s authority to Palestine, the PLO conducts Palestine’s foreign affairs.

During the relevant time period for this action, the PLO maintained over 75 embassies, missions, and delegations around the world. The PLO is registered with the United States Government as a foreign agent. The PLO has two diplomatic offices in the United States: a mission to the United States in Washington, D.C. and a mission to the United Nations in New York City. The Washington, D.C. mission had fourteen employees between 2002 and 2004, including two employees of the PA, although not all at the same time. 3 The Washington, D.C. and New York missions engaged in diplomatic activities during the relevant period. The Washington, D.C. mission “had a substantial commercial presence in the United States.” Sokolow, 2011 WL 1345086, at *4. It used dozens of telephone numbers, purchased office supplies, paid for certain living expenses for Hassan Abdel Rahman, the chief PLO and PA representative in the United States, and engaged in other transactions. Id. The PLO also retained a consulting and lobbying firm through a multi-year, multi-mil-lion-dollar contract for services from about 1999 to 2004. Id. The Washington, D.C. mission also promoted the Palestinian cause in speeches and media appearances. Id.

Courts have repeatedly held that neither the PA nor the PLO is a “state” under United States or international law. See Klinghoffer v. S.N.C. Achille Lauro, 937 F.2d 44, 47-48 (2d Cir. 1991) (holding the PLO, which had no defined territory or permanent population and did not have capacity to enter into genuine formal relations with other nations,' was not a “state” for purposes of the Foreign Sovereign Immunities Act); Estates of Ungar v. Palestinian Auth., 315 F.Supp.2d 164, 178-86 (D.R.I. 2004) (holding that neither the PA nor the PLO is a state entitled to sovereign immunity under the Foreign Sovereign Immunities Act because neither entity has a defined territory with a permanent population controlled by a government that has the capacity to enter into foreign relations); see also Knox v. Palestine Liberation Org., 306 F.Supp.2d 424, 431 (S.D.N.Y. 2004) (holding that neither the PLO nor the PA was a “state” for purposes of the Foreign Sovereign Immunities Act).

While the United States does not recognize Palestine or the PA as a sovereign government, see Sokolow v. Palestine Liberation Org., 583 F.Supp.2d 451, 457-58 (S.D.N.Y. 2008) (“Palestine, whose statehood is not recognized by the United States, does not meet the definition of a ‘state,’ under United States and international law ....”) (collecting cases), the PA is the governing authority in Palestine and employs tens of thousands of security personnel in Palestine. According to the PA’s Minister of Finance, the “PA funds conventional government services, including developing infrastructure; public safety and the judicial system; health care; public schools and education; foreign affairs; economic development initiatives in agriculture, energy, public works, and public housing; the payment of more than 155,000 government employee salaries and related pension funds; transportation; and, communications and information technology services.”

*324 B.

The plaintiffs sued the defendants in 2004, alleging violations of the ATA for seven terror attacks committed during a wave of violence known as “the al Aqsa-Intifada,” by nonparties who the plaintiffs alleged were affiliated with the defendants. The jury found the plaintiffs liable for six of the attacks. 4 At trial, the'plaintiffs presented evidence of the following attacks.

i. January 22, 2002: Jaffa Road Shooting

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835 F.3d 317, 2016 U.S. App. LEXIS 16089, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sokolow-v-palestine-liberation-organization-ca2-2016.