Iranian Terror Case Sent to Lower Court

Yahoo News:

The Supreme Court on Tuesday ordered an appellate court to reconsider allowing the brother of a victim of Iranian terrorism to collect 2.8 million dollars from a California company that owes Iran for a cancelled weapons shipment. READ MORE

Dariush Elahi's brother, Cyrus, a leader in a France-based Iranian opposition movement, was assassinated in Paris in 1990. French authorities blamed the Iranian government for the killing.

In 2000, Dariush Elahi sued Iran in federal court in Washington. The Iranian government failed to respond to the lawsuit, and after a trial, a judge awarded Elahi $11.7 million in compensatory and $300 million in punitive damages.

Under federal law, foreign states receive immunity from lawsuits with some exceptions, including terrorism and instances where foreign governments use other entities in commercial ventures.

At issue is whether terrorism victims or their relatives can place liens on property in the United States belonging to Iran or other countries to satisfy large judgment awards.

The Bush administration sided with Iran, arguing that the foreign nation's Ministry of Defense is a "core" part of the Iranian government and not a separate commercial enterprise.

The 9th U.S. Circuit Court of Appeals allowed Elahi to attach a $2.8 million award to Iran's Ministry of Defense in a dispute dating to the Iranian revolution of 1979. Cubic Defense Systems, a San Diego company, had a contract to supply equipment to the Iranian Air Force but stopped delivery.

The case is Ministry of Defense of Iran v. Elahi, 04-1095.