Valore v. Islamic Repub. Of Iran, 03-cv-1959 (RCL)

• Court: United States District Courts. United States District Court (Columbia)
• Citation: 700 F.Supp.2d 52
• Docket Number: 06-cv-516 (RCL),06-cv-750 (RCL),No. 03-cv-1959 (RCL),08-cv-1273 (RCL).,03-cv-1959 (RCL)
• Parties: Terance J. VALORE, et al., Plaintiffs,v.ISLAMIC REPUBLIC OF IRAN, et al., Defendants.
• Decision Date: 31 March 2010

700 F.Supp.2d 52

Terance J. VALORE, et al., Plaintiffs,v.ISLAMIC REPUBLIC OF IRAN, et al., Defendants.

Nos. 03-cv-1959 (RCL), 06-cv-516 (RCL), 06-cv-750 (RCL), 08-cv-1273 (RCL).

United States District Court,

District of Columbia.

March 31, 2010.

COPYRIGHT MATERIAL OMITTED

COPYRIGHT MATERIAL OMITTED

COPYRIGHT MATERIAL OMITTED

COPYRIGHT MATERIAL OMITTED

Daniel W. Gaskill, Rockville, MD, Joseph Peter Drennan, Joseph Peter Drennan, Attorney-at-Law, Alexandria, VA, Patrick M. Donahue, Donahue Law Firm, Annapolis, MD, Thomas Fortune Fay, Caragh Glenn Fay, Fay Kaplan Law, PA, Richard D. Heideman, Noel Jason Nudelman, Tracy Reichman Kalik, Heideman Nudelman & Kalik, P.C., Steven R. Perles, Perles Law Firm, P.C., Washington, DC, for Plaintiffs.

MEMORANDUM OPINION

ROYCE C. LAMBERTH, Chief Judge.

I. Introduction.

This memorandum opinion accompanies the final judgments in the recently consolidated cases of Valore v. Islamic Republic of Iran, No. 03-cv-1959 Arnold v. Islamic Republic of Iran, No. 06-cv-516 Spencer v. Islamic Republic of Iran, No. 06-cv-750, and Bonk v. Islamic Republic of Iran, No. 08-cv-1273. These cases all arise out of the October 23, 1983, bombing of the United States Marine barracks in Beirut Lebanon (“the Beirut bombing”), where a suicide bomber murdered 241 American military servicemen in the most deadly state-sponsored terrorist attack upon Americans until the tragic attacks on September 11, 2001.

The Court will first discuss the complicated background of these cases: the relationship between these cases and the previously decided consolidated cases of Peterson v. Islamic Republic of Iran and Boulos v. Islamic Republic of Iran (collectively, “ Peterson ”), recent changes made to the Foreign Sovereign Immunities Act (FSIA), the procedural approach by which recently amended FSIA provisions apply, the judicial notice taken of findings and conclusions made in Peterson and the subsequent entry of default judgments in each case, and a summary of the claims made in each case. Second, the Court will make findings of fact for these consolidated cases. Third, the Court will discuss, relative to each previously separate case, the Court's personal and subject-matter jurisdiction. Fourth, the Court will discuss defendants' liability under both the federal cause of action created by the Foreign Sovereign Immunities Act and causes of action under District of Columbia law. Finally, the Court will award compensatory and punitive damages as appropriate.

II. Background.A. Relationship to Peterson, Recent Changes to the FSIA, and Plaintiffs' Procedural Approach.

All plaintiffs in these consolidated cases originally brought their individual actions against defendants under 28 U.S.C. § 1605(a)(7), the former state-sponsor-of-terrorism exception to the general rule of sovereign immunity enumerated in the Foreign Sovereign Immunities Act of 1976, 28 U.S.C. §§ 1330, 1602-1611. Section 1605(a)(7) “was ‘merely a jurisdiction conferring provision,’ and therefore did not create an independent federal cause of action against a foreign state or its agents.” In re Islamic Republic of Iran Terrorism Litig., 659 F.Supp.2d 31 (D.D.C.2009) (quoting Cicippio-Puleo v. Islamic Republic of Iran, 353 F.3d 1024, 1027, 1032 (D.C.Cir.2004)) (Lamberth, J.). It merely opened the door to plaintiffs seeking to bring suit in federal court against foreign sovereigns for terrorism-related claims which had to be based on state tort law. See id. at 40-48 (providing a historical overview of the FSIA terrorism exception) Further, the FSIA did not permit the awarding of punitive damages against foreign states themselves. Id. at 48.

These cases come to the Court following final judgment in Peterson. See 264 F.Supp.2d 46 (D.D.C.2003) (Lamberth, J.) [hereinafter Peterson I ]. That case established the liability of Iran and MOIS in the terrorist attack out of which these cases also arise, but did so under § 1605(a)(7), thus reaching “inconsistent and varied result[s]” when various states' tort laws differed. In re Islamic Republic of Iran Terrorism Litig., 659 F.Supp.2d at 59; see Peterson v. Islamic Republic of Iran, 515 F.Supp.2d 25 (D.D.C.2007) (Lamberth, J.) [hereinafter Peterson II ]. Congress responded to this inconsistency and the unavailability of punitive damages by replacing § 1605(a)(7) with § 1605A, a new terrorism exception that provides an independent federal cause of action and makes punitive damages available to plaintiffs. See In re Islamic Republic of Iran Terrorism Litig., 659 F.Supp.2d at 58-61 (discussing repeal of § 1605(a)(7) and enactment of § 1605A). Plaintiffs now seek to take advantage of these changes.

Individuals seeking to take advantage of this new cause of action and punitive-damages allowance must proceed under one of three procedural approaches, which are laid out in part in the National Defense Authorization Act for Fiscal Year 2008, Pub.L. No. 110-181, § 1083(2)-(3), 112 Stat. 3, 342-43. See generally In re Islamic Republic of Iran Terrorism Litig., 659 F.Supp.2d at 62-65 (discussing retroactive application of § 1605A to cases previously filed under § 1605(a)(7)). First, potential plaintiffs may pursue a case related to a “prior action”:

With respect to any action that was brought under section 1605(a)(7) of title 28, United States Code ... before [Jan. 28, 2008,] relied upon ... such provision as creating a cause of action, has been adversely affected on the grounds that [such] provision[ ] fail[ed] to create a cause of action against the state, and as of such date ... is before the courts in any form ..., that action, and any judgment in the action[,] shall ... be given effect as if the action had originally been filed under section 1605A(c) of title 28, United States Code.

§ 1083(c)(2)(A). Second and alternatively, potential plaintiffs may pursue a case related to a “related action”:

If an action arising out of an act or incident has been timely commenced under section 1605(a)(7) of title 28, United States Code, ... any other action arising out of the same act or incident may be brought under section 1605A of title 28, United States Code....

§ 1083(c)(3). Third and finally, potential plaintiffs may pursue a stand-alone action, i.e., one not related to any action previously filed under § 1605(a)(7), such that retroactive application of § 1605A is not necessary.

Plaintiffs in these cases all proceed under the second approach. Actions timely commenced under § 1605(a)(7) in this Court that relate to the Beirut bombing include Peterson v. Islamic Republic of Iran, No. 01-cv-2094; Boulos v. Islamic Republic of Iran, No. 01-cv-2684; Valore v. Islamic Republic of Iran, No. 03-cv-1959; Bland v. Islamic Republic of Iran, No. 05-cv-2124; Arnold v. Islamic Republic of Iran, No. 06-cv-516; Murphy v. Islamic Republic of Iran, No. 06-cv-596; O'Brien v. Islamic Republic of Iran, No. 06-cv-690; Spencer v. Islamic Republic of Iran, No. 06-cv-750; and Davis v. Islamic Republic of Iran, No. 07-cv-1302. The consolidated cases before the Court today, therefore, are related to several related cases. By the plain terms of § 1083(c)(3), the plaintiffs in these consolidated cases may therefore proceed under § 1605A.

B. Default Judgment and Judicial Notice of Findings of Fact and Conclusions of Law from Peterson.

In each of the cases now consolidated, this Court took judicial notice of the findings of fact and conclusions of law made in Peterson. In the orders taking such notice, the Court also issued default judgments against both defendants. Plaintiffs had established their right to relief “by evidence satisfactory to the court,” 28 U.S.C. § 1608(e), through “uncontroverted factual allegations, which are supported by ... documentary and affidavit evidence,” Int'l Road Fed'n v. Embassy of the Democratic Republic of the Congo, 131 F.Supp.2d 248, 252 n. 4 (D.D.C.2001) (quotation omitted).

A court may take judicial notice of any fact “not subject to reasonable dispute in that it is ... capable of accurate and ready determination by resort to sources whose accuracy cannot reasonably be questioned.” Fed.R.Evid. 201(b). Under Rule 201(b), courts generally may take judicial notice of court records. See 21B Charles Alan Wright & Kenneth W. Graham, Jr., Federal Practice & Procedure § 5106.4; see also Booth v. Fletcher, 101 F.2d 676, 679 n. 2 (D.C.Cir.1938) (“A court may take judicial notice of, and give effect to, its own records in another but interrelated proceeding....”). Indeed, as has been noted in several other FSIA cases brought in this District, “this Court ‘may take judicial notice of related proceedings and records in cases before the same court.’ ” Brewer v. Islamic Republic of Iran, 664 F.Supp.2d 43, 50-51 (D.D.C.2009) (quoting Heiser v. Islamic Republic of Iran, 466 F.Supp.2d. 229, 267 (D.D.C.2006) (Lamberth, J.) [hereinafter Heiser I ] ). At issue is the effect of such notice.

Although a court clearly may judicially notice its findings of facts and conclusions of law in related cases, this Circuit has not directly considered whether and under what circumstances a court may judicially notice the truth of such findings and conclusions. Circuits that have addressed this question have concluded that “courts generally cannot take notice of findings of fact from other proceedings for the truth asserted therein because these are disputable and usually are disputed”; but because “it is conceivable that a finding of fact may satisfy the indisputability requirement,” these courts have not adopted a per se rule against such notice. Taylor v. Charter Med. Corp., 162 F.3d 827, 829-30 (5th Cir.1998); see also Wyatt v. Terhune, 315 F.3d 1108, 1114 n. 5 (9th Cir.2003); Int'l Star Class Yacht Racing Ass'n v. Tommy Hilfiger U.S.A., Inc., 146 F.3d 66, 70 (2d Cir.1998); Gen. Elec. Capital Corp. v. Lease Resolution Corp., 128 F.3d 1074, 1082 n. 6 (7th Cir.1997); United States v. Jones, 29 F.3d 1549, 1553 (11th Cir.1994); Holloway v. Lockhart, 813...