Wyatt v. Syrian Arab Republic

800 F.3d 331, 2015 WL 5090720
CourtCourt of Appeals for the Seventh Circuit
DecidedAugust 31, 2015
Docket14-3327, 14-3344
StatusPublished
Cited by13 cases

This text of 800 F.3d 331 (Wyatt v. Syrian Arab Republic) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wyatt v. Syrian Arab Republic, 800 F.3d 331, 2015 WL 5090720 (7th Cir. 2015).

Opinion

HAMILTON, Circuit Judge.

These appeals address attempts to execute final judgments against the nation of *333 Syria obtained by two groups of United States victims of Syrian state-sponsored terrorism. Both groups of victims have won judgments under the Foreign Sovereign Immunities Act. Both seek to satisfy their judgments by seizing the same Syrian assets located in the Northern District of Illinois.

We affirm the actions of the district court, which ordered the assets disbursed to the appellees, whom we refer to as the Gates plaintiffs. The legal issue we decide on the merits is that plaintiffs who win judgments in state-sponsored terrorism cases against foreign governments under 28 U.S.C. § 1605A, and who seek to attach property under § 1610(g), are not required to comply with the notice requirement of § 1608(e) before executing their judgments. The Foreign Sovereign Immunities Act contains extensive procedural protections for foreign sovereigns in United States courts, but Congress has amended the Act to cut back some of those protections in cases of state-sponsored terrorism. Before dealing with the merits of this issue at the end of this opinion, however, we must first deal with a complex procedural history and several jurisdictional challenges.

To explain, we begin by introducing the legal framework for remedies for state-sponsored terrorism under the Foreign Sovereign Immunities Act, the parties and their claims, and the involved procedural history of these appeals. We then address challenges to our jurisdiction and conclude by addressing the merits of these appeals.

I. Legal, Factual, and Procedural Background

A. Terrorism and the Foreign Sovereign Immunities Act

The default rule of United States law is that foreign states are immune from suit and attachment of assets in United States courts, but the Foreign Sovereign Immunities Act (FSIA) provides a number of exceptions and special procedures for such cases. The FSIA is comprehensive, so all cases against foreign sovereigns must be fitted into its statutory framework. Republic of Argentina v. NML Capital, Ltd., 573 U.S. -, 134 S.Ct. 2250, 2255-56, 189 L.Ed.2d 234 (2014); Gates v. Syrian Arab Republic, 755 F.3d 568, 571 (7th Cir.2014) (earlier appeal involving same Syrian assets at issues in these appeals).

The FSIA now contains provisions specific to claims for state-sponsored terrorism. Section 1605A removes sovereign immunity in actions for money damages for personal injury or death resulting from an act of state-sponsored terrorism. 28 U.S.C. § 1605A. Once plaintiffs obtain a judgment under § 1605A, they may proceed to attach assets to execute that judgment under § 1610. Subsection § 1610(g) allows plaintiffs with a judgment against a state sponsor of terrorism to attach and execute the judgment against property of the foreign state itself and any agency and instrumentality of the state.

Other provisions of § 1610 establish the more general process for executing a judgment against a foreign state in suits other than those for state-sponsored terrorism, such as more ■ ordinary contract or tort cases arising out of a foreign state’s commercial activities. Subsections 1610(a) and (b) describe the property of foreign states that is generally subject to attachment to satisfy a judgment. Subsection 1610(c) delays attachment and execution under § 1610(a) and (b) until a court determines that a reasonable period of time has elapsed following the entry of judgment. Subsection 1610(c) also requires compli *334 anee with § 1608(e), which directs a plaintiff who obtains a default judgment to serve the foreign state with a copy of the judgment in a specific manner.

The interplay between these more general provisions and the special provisions for state-sponsored terrorism is at the center of the dispute between these two groups of victims. In Gates, we described the perhaps unintended consequences of this statutory scheme in previous appeals by a third group of victims seeking the same assets in dispute here:

[T]he FSIA does not provide a mechanism for distributing equitably among different victims any Syrian assets in the United States that are subject to attachment. Instead, victims who finally obtain judgments must then engage in the costly, burdensome, and often fruitless task of searching for available assets.
These victims of terror can then find themselves pitted in a cruel race against each other — a race to attach any available assets to satisfy the judgments. The terms of the race are essentially winner-take-all rather than any equitable sharing among victims of similar losses. Under the FSIA’s compensation scheme, a terrorism judgment against Syria can be satisfied only at the expense of other terrorism victims.

Gates, 755 F.3d at 571.

B. The Gates Plaintiffs

In both of these appeals, the appellees are the Gates plaintiffs. They are defending the district court’s decision to release confiscated Syrian funds to them to satisfy their judgment. The Gates plaintiffs are relatives of Olin Eugene “Jack” Armstrong and Jack L. Hensley. Hensley and Armstrong were kidnapped in September 2004 by al-Qaeda when the two men were working as contractors in Iraq for the U.S. military. They were gruesomely murdered, and the killings were captured on a video that was made public by al-Qaeda. The Gates plaintiffs sued Syria under the FSIA for sponsoring al-Qaeda’s terrorism. (Syria has been on the list of state sponsors of terrorism since the list was created in 1979.)

On September 26, 2008, the Gates plaintiffs obtained a default judgment in the United States District Court for the District of Columbia for $413 million against Syria. A month later, on October 23, the court clerk sent a copy of the default judgment to the Syrian Foreign Ministry via a private delivery service, but the delivery was rejected and the delivery agent was told “the shipment is no longer required.” The next day, Syria filed a notice of appeal challenging the district court’s personal jurisdiction over Syria.

While that appeal was pending, the Gates plaintiffs sought to take steps to execute their judgment against Syria. The Wyatt plaintiffs, who had filed their own suit against Syria, moved to intervene in the Gates case in the District of Columbia, asserting a prior claim on Syrian assets in the District of Columbia because they had filed their suit earlier. The district court stayed enforcement of the Gates judgment pending appeal and denied as moot the Wyatt motion to intervene.

On May 20, 2011, the United States Court of Appeals for the District of Columbia Circuit found personal jurisdiction proper and affirmed the district court’s default judgment in favor of the Gates plaintiffs. Gates v. Syrian Arab Republic,

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Bluebook (online)
800 F.3d 331, 2015 WL 5090720, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wyatt-v-syrian-arab-republic-ca7-2015.