Terrorist Attacks on September 11, 2001 v. Al Qaida

122 F. Supp. 3d 181, 2015 U.S. Dist. LEXIS 107381, 2015 WL 4879070
District Court, S.D. New York·Decided August 14, 2015·No. No. 03-MDL-1570 (GBD)·Published·Cited by 4 cases

Opinion

[183] OPINION

GEORGE B. DANIELS, District Judge.

In this vast multi-district litigation, Plaintiffs allege that hundreds of defendants sponsored and aided the terrorist attacks on September 11, 2001 by knowingly and intentionally providing financial and other material support to Osama bin Laden, al Qaeda, and its affiliated-terrorist organizations. One of the defendants, Dr. Abdul Rahman Al-Swailem (“Al-Swai-lem”), is the former President of both the Saudi Joint Relief Committee (“SJRC”) and the Saudi Red Crescent Society (“SRC”), two instrumentalities of the Saudi government that are immune from suit under the Foreign Sovereign Immunities Act (“FSIA”), 28 U.S.C. §§ 1602 et seq. Plaintiffs allege that Al-Swailem used his authority over the SJRC and the SRC to deliver material support and resources to al Qaeda. Al-Swailem moved to dismiss for lack of subject matter jurisdiction, pursuant to Federal Rules of Civil Procedure 12(b)(1) and 12(h)(3), on the grounds that he is entitled to common law sovereign immunity. (Motion to Dismiss, (ECF No. 2773).) For the reasons set forth below, Al-Swailem’s motion to dismiss is GRANTED.

BACKGROUND

Al-Swailem is one of nine1 “Charity Official defendants” who “allegedly controlled and managed purported charitable organizations that provided support and funding to al Qaeda” in the years prior to the September 11, 2001 terrorist attacks. In re Terrorist Attacks on Sept. 11, 2001 (Asat Trust Reg., et al.), 714 F.3d 659, 666 (2d Cir.2013) (“Terrorist Attacks (Asat

Trust Reg., et al.) ”). In 1998 and 1999, respectively, Al-Swailem was appointed by the King of Saudi Arabia, Fahd bin Abdu-laziz, to serve as President of the SRC and the SJRC. Al-Swailem led both organizations until 2005.2 Al-Swailem is among the Charity Official defendants who allegedly:

(1) served as senior officials of one or more of al-Qaeda’s front charities, (2) used their authority over those organizations to orchestrate their material support and sponsorship of al-Qaeda, and (3) acted with knowledge that the organizations under their control were channeling material support and resources to al-Qaeda, and that such support would be Used - to support- al-Qaeda’s jihad against the United States.

Id. at 667 (citations and internal quotation marks omitted). Al-Swailem argues that Plaintiffs only allege one act that could be construed as providing material support to al Qaeda: “[A]s head of the SRC, al Swai-lem was responsible for the decision to appoint [Wa’el] Julaidan as a Director of the SJRC, thus placing a prominent and known al Qaida figure in a position of authority within his charity.” (Am. RICO Statement, (ECF No. 2784-1), Ex. l'at 11.) “[Accepting all material facts alleged in the complaint as true and drawing all reasonable inferences in the plaintiffs’] favor,” Liranzo v. United States, 690 F.3d 78, 84 (2d Cir.2012), this Court relies on the allegations against Al-Swailem in the Complaint and as characterized by the Second Circuit in Terrorist Attacks (Asat Trust Reg., et al.). (See Oral Arg. Tr. 56:19-20 (Apr. 24, 2014) (Plaintiffs’ counsel stated that “the way that the Second Circuit characterized [the allegations] is, in fact, the law of the case”).)

[184] On June 17, 2010, - this Court dismissed Al-Swailem, the SJRC, and the SRC from this case — Al-Swailem' on personal jurisdiction grounds, and the SJRC and the SRC on sovereign immunity grounds. See In re Terrorist Attacks on September 11, 2001, 718 F.Supp.2d 456, 467 n. 4, 476 (S.D.N.Y.2010) (“In re Terrorist Attacks IV”). The decision dismissing Al-Swailem did not address the merits of Al-Swailem’s common law sovereign immunity defense due to his dismissal on personal jurisdiction grounds. See id. at 467.

On April 16, 2013, the Second Circuit vacated this Court’s judgment insofar as it dismissed Plaintiffs’ claims against the Charity Official. defendants, including Al-Swailem, and other defendants, and remanded the case as to those claims only for “prompt commencement of a course of judicially-supervised jurisdictional discovery.” Terrorist Attacks (Asat Trust Beg., et al.), 714 F.3d at 666, 682. Personal jurisdiction discovery has since been ongoing under the guidance of Magistrate Judge Frank Maas.

In a separate opinion, also issued April 16, 2013, the Second Circuit upheld the dismissal of the SJRC and the SRC- because the defendants qualify as instrumen-talities of a foreign sovereign, and Plaintiffs did not meet their burden of showing that an exception to the FSIA applies. In re Terrorist Attacks on September 11, 2001 (Saudi Joint Belief Committee, et al.), 714 F.3d 109, 114, 118 (2d Cir.2013) (“Terrorist Attacks (SJBC) ”) (“[T]he noncommercial tort exception to the immunity from suit conferred by the Foreign Sovereign Immunities Act does not apply in these circumstances pursuant to the so-called ‘entire tort’ rule, and thus, we lack jurisdiction to consider plaintiffs’ claims against the SJRC and the SRC.”).

On August 29, 2013, Al-Swailem again moved this Court for dismissal on the grounds that he is entitled to common law sovereign immunity. He argues that he is immune from suit because the Saudi government has asserted immunity on his behalf,3 and Plaintiffs’ allegations are based entirely on official acts that he took in his official capacity as head of the SJRC and the SRC — two instrumentalities of Saudi Arabia that are themselves immune from suit.4

Plaintiffs argue that (1) the motion is not properly before this Court because Saudi Arabia has not requested a suggestion of immunity from the State Department; (2) sovereign immunity is not available to the former head of charitable organizations that engage in activities commonly performed by private entities; and (3) the allegations against Al-Swailem relate to illegal conduct that is not protected by the immunity doctrine.5

[185] MOTION TO DISMISS

I. LEGAL STANDARD

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Terrorist Attacks on September 11, 2001 v. Al Qaida, 122 F. Supp. 3d 181, 2015 U.S. Dist. LEXIS 107381, 2015 WL 4879070 (S.D.N.Y. 2015).

122 F. Supp. 3d 181 (Terrorist Attacks on September 11, 2001 v. Al Qaida) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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