Circuit Reverses $655M Award Against PLO for Terror Attacks
Hamblett/NewYorkLawJournal: A $655 million award against the Palestine Liberation Organization and the Palestinian Authority for attacks that killed or wounded members of 11 American families in Israel has been thrown out by the U.S. Court of Appeals for the Second Circuit.
The circuit held this morning that there was no personal jurisdiction over the action, where a jury found after a seven-week trial in 2015 that the PLO and the Authority, acting through their employees, perpetrated the attacks or provided material support for those who did.
The decision was a big setback for lawyers who have been working for years to win damages for families under the Anti-Terrorism Act, 18 U.S.C. §2333(a). The jury before Judge George Daniels in the Southern District of New York awarded the plaintiffs $218.5 million, an amount automatically tripled to $655.5 million under the Act.
Judges Pierre Leval and Christopher Droney and Southern District Judge John Koeltl, sitting by designation, said Daniels erred in finding personal jurisdiction in Sokolow v. Palestinian Liberation Organization, 15-3135.
The decision rejected the arguments of Arnold & Porter partner Kent Yalowitz, who told the circuit in April that jurisdiction should lie and justice be done for the “11 American families whose loved ones were murdered and maimed by the defendants” because the goal of the PLO and the Authority was to influence the foreign policy of the United States through coercion and intimidation—a key part of the Anti-Terrorism Act.
Yalowitz said the evidence was clear that the defendants were involved in the attacks, either through their own employees or through assistance to their allies within Hamas and the al-Aqsa Martyrs Brigade (NYLJ, April 13).
But Mitchell Berger, a partner at Squire Patton Boggs, got the better of the argument, telling the judges that case law was clear that “you have to find the brunt of the injury” in the United States to sue in an American courtroom.
The case was bought by 36 plaintiffs and four estates seeking compensation for death and injuries that occurred in a series of attacks, including the July 31, 2002, Hebrew University bombing carried out by Hamas that killed nine people, four of them U.S. citizens.
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During the second Intifada, numerous American citizens were murdered by terrorist attacks.
In 2004, the families of several deceased victims sued the Palestine Liberation Organization (PLO) and the Palestinian Authority (PA) in the Southern District of New York under the Antiterrorism Act. The families claim the PLO and PA organizations financed and orchestrated the following seven attacks:
(1) The January 8, 2001 shooting attack on Varda Guetta and her son Oz;
(2) The January 22, 2002 shooting attack on Shayna Gould and Shmuel Waldman;
(3)The January 27, 2002 suicide bombing attack on the Sokolow family;
(4) The March 21, 2002 suicide bombing attack on Alan Bauer and his son Yehonatan;
(5) The June 19, 2002 suicide bombing attack on Shaul Mandelkorn;
(6) The July 31, 2002 Hebrew University Cafeteria bombing which killed David Gritz, Benjamin Blustein, Diane Carter and Janis Coulter;
(7) The January 29, 2004 suicide bombing attack on a bus which killed Yechezkel Goldberg.
The plaintiffs seek up to $3 billion in damages from attacks between January 2001 and February 2004 by the PLO. In September 2008, U.S. District Judge George Daniels rejected the PLO’s argument that the attacks were acts of war rather than terrorism. Trial began in January 2015 and on February 23, the jury returned a guilty verdict on all counts. The defense has been found liable for $218.5 million, an amount set to be tripled to $655.5 million.
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