US gov’t opposes forcing Iran to reveal assets (JERUSALEM POST) By JOANNA PARASZCZUK 06/12/12)
Source: http://www.jpost.com/International/Article.aspx?id=273515
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Lawyers for American victims of a Hamas triple suicide bombing who
successfully sued Iran for damages have slammed the US Department of
Justice’s backing of a court ruling preventing the plaintiffs from
obtaining information about Iran’s US-based assets, The Jerusalem
Post learned this week.
The lawsuit, Rubin v. The Islamic Republic of Iran, first made
headlines in 2003 when the US District Court in Washington, DC,
awarded 33-year-old American Daniel Miller and other victims
seriously wounded in the attack $71.5 million in compensatory damages
from Iran.
The court ruled that Iran was responsible for the attack, because it
had provided funding and training to Hamas.
However, in the nine years since that ruling, Miller and the other
plaintiffs have been unable to obtain justice from the Islamic
Republic, because the Iranian government has refused to pay out the
damages.
In an odd twist of events, the lawsuit has led to accusations
recently that the US government is supporting Iran by filing court
briefs in support of Tehran’s decision to hide its assets and avoid
paying Miller and the other victims.
After the 2003 court ruling awarding them compensation from Iran,
Miller and the other plaintiffs served the Islamic Republic with a
request to produce documents regarding all of its US-based assets.
Iran, which had previously refused to appear in US court, immediately
hired a lawyer and sought a protective order to shield its US assets
from the terror victims’ discovery requests.
Eventually, the US Court of Appeals ruled in favor of Iran and
concluded that the terror victims could not obtain information about
all Iranian assets in the US, and that instead they could only seek
discovery about specific Iranian property.
In what is set to be a landmark decision this month, the US Supreme
Court is expected to decide by June 25 whether to review the Court of
Appeals ruling denying Miller access to information about Iranian
assets.
Late last month, in a move that has provoked anger among terror
victims, the US Department of Justice filed an amicus brief to the
Supreme Court, arguing that the Court of Appeals ruling was correct.
“Compelling a foreign state to produce extensive material pertaining
to its assets may impose significant burdens and impugn the state’s
dignity, and may have implications for the United States’ foreign
relations,” the Department of Justice brief reads.
Theodore Olson, a former US solicitor-general and the lawyer
representing Miller, slammed the US government over its position on
the matter, saying it was “aiding and abetting Iranian terrorism by
supporting Iran’s attempts to conceal its assets,” because Congress
had passed laws permitting terrorist victims to sue state sponsors of
terror as a way to deter terrorism.
“It is outrageous that the [US] State Department would support Iran’s
efforts to evade a judgment properly entered by a United States court
in favor of American citizens,” Olson told the Post.
Olson said that the question of whether Iran financed the Hamas
terrorist attacks that devastated Miller’s life and those of his
fellow victims was not in dispute.
“Iran is unquestionably liable to pay the victims of its crimes, but
it has made every effort to avoid paying by repeatedly concealing its
assets,” he said.
“The victims in our case simply seek what every other judgment
creditor is entitled to obtain: The identity and location of the
judgment debtor’s assets,” he added.
Olson said Miller and the other victims faced a “critical
difficulty,” in that they cannot begin attachment proceedings to
obtain the damages they were awarded, if they are unable to locate
Iranian assets in the US.
“The [Obama] administration’s position that Daniel cannot receive
even this minimal discovery about the location of Iranian assets
prevents him from even attempting to recover his judgment against
Iran,” Olson told the Post.
The issue of victims of Iranian- sponsored terror being unable to
locate Iranian assets to pay US court rulings against the Islamic
Republic extends far beyond the case of Rubin v. The Islamic Republic.
Courtroom victories by victims of terror against Iran have
highlighted the extent to which the Islamic Republic funds
Palestinian terror in Israel and neighboring territories.
Last month, the US District Court awarded a $332m. judgment against
Iran and Syria to the family of a 16-year-old boy, Daniel Wultz, who
died of horrific injuries in a 2006 Hamas suicide bombing in Tel Aviv.
In March, the same court awarded two victims of the 1983 US Marine
barracks bombing in Beirut $44.6m. in damages from Iran.
In 2007, a US federal judge ruled in a separate lawsuit, Peterson v.
Iran, that Iran must pay $2.65 billion to the families of servicemen
killed in the Beirut attack, the largest nonnuclear explosion on
earth at that time.
However, although plaintiffs in all these cases have actively sought
Iranian assets that could be seized to pay the court-awarded damages,
they have so far been unsuccessful.
At the same time as lawyers for the Rubin v. Iran plaintiffs are
fighting their case in the US Supreme Court, other terror victims and
their supporters are pushing forward a bipartisan bill which would
subject Iranian assets to US court jurisdiction, thereby releasing
them to pay against judgements of lawsuits brought against the
Islamic Republic.
In recent months, lawyers in the Peterson v. Iran suit have attached
nearly $2b. in Iranian debt-securities, which sits frozen in a
Citibank account in New York.
Allegedly, Luxembourg-based clearing house and bank Clearstream is
holding the money, which came to light last November after the
Peterson plaintiffs sued Clearstream over the assets.
Clearstream denies holding funds for Iran, while Citibank is fighting
for the courts to unfreeze the $2b.
Meanwhile, Olson said that the only issue now at stake for the Rubin
v. Iran case in the US Supreme Court is whether Miller and the other
terror victims can obtain basic information about Iranian assets in
the US.
“Iran has refused to provide even this basic discovery, which the
victims need in order to determine which assets might be subject to
attachment,” he concluded.
“If the issue arose in the future whether the victims are permitted
to attach any particular asset – cultural asset or otherwise – Iran
would have the right to assert any objections it might have at the
time.” (© 1995-2011, The Jerusalem Post 06/12/12)
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