Rachel Fraenkel v. Islamic Republic of Iran
Opinion
Edwards, Senior Circuit Judge
On June 12, 2014, sixteen-year-old Yaakov Naftali Fraenkel ("Naftali") and two of his classmates were taken hostage by members of Hamas while on their way home from school in Israel's West Bank. A half-hour after they were taken hostage, the boys were killed by their captors. Naftali's family brought suit in District Court against the Islamic Republic of Iran, Ministry of Foreign Affairs ("Iran"), the Iranian Ministry of Information and Security, and the Syrian Arab Republic ("Syria") (collectively, "Appellees") under the terrorism exception to the Foreign Sovereign Immunities Act ("FSIA"), 28 U.S.C. § 1605A, for providing material support to Hamas. The defendants failed to respond to the complaint and the District Court entered a default judgment in favor of the Fraenkels, awarding Naftali's estate $1 million for his pain and suffering and $50 million in punitive damages, and his family $4.1 million in solatium damages.
See
Fraenkel v. Islamic Republic of Iran
(
Fraenkel I
),
The Fraenkels argue that the District Court erred in failing to determine the solatium damages awards in conformity with the remedial scheme established in
Estate of Heiser v. Islamic Republic of Iran
,
The Fraenkels also contend that the District Court erred in awarding solatium damages in amounts less than the damages awarded in
Gates v. Syrian Arab Republic
,
The Fraenkels claim that the District Court abused its discretion in awarding solatium damages because the court's judgment was based on impermissible considerations and clearly erroneous findings of fact. We agree.
For the reasons explained below, we reverse the District Court's judgment on the solatium damages awards and remand for further consideration. We affirm the District Court's punitive damages and pain-and-suffering awards because the judgments with respect to those awards were consistent with the applicable law, adequately reasoned, and supported by the evidence.
I. BACKGROUND
A. Factual Background
Yaakov Naftali Fraenkel, a sixteen-year-old with Israeli and U.S. citizenship, attended boarding school in the Gush Etzion region of Israel's West Bank. His mother, father, and six siblings lived in Nof Ayalon, an Israeli settlement that straddles the Green Line. On the evening of June 12, 2014, Naftali headed home from school accompanied by two classmates, Gilad Shaer and Eyal Yifrach. The boys waited at a junction in Alon Shvut to hail a ride from passing cars. According to Naftali's mother, Rachelle Fraenkel, "[t]he boys thought they were getting a ride home in a spot where hitchhiking is very normal and usually safe." Declaration of Plaintiff Rachelle Fraenkel, at 8 ¶ 43 (June 27, 2016), reprinted at Appendix ("App.") 107.
Around 10:00 p.m., a car stopped for the young men. Inside were two members of Hamas, who abducted the boys at gunpoint. Around 10:30 p.m., Israeli emergency services received a telephone call. The police heard a voice that sounded like Gilad, who said that the boys had been kidnapped; they also heard another voice speaking in Arabic and Hebrew saying "put your head down." The police then heard muffled sounds of gunshots and a person moaning in physical pain. It was later determined that the terrorists had shot and killed each boy. After eighteen days of searching, the boys' bodies were found on land owned by the head of a Hamas cell. On August 20, 2014, Hamas officially took responsibility for the kidnapping and murders of Naftali, Gilad, and Eyal.
On July 9, 2015, the Fraenkels brought this civil action in District Court, alleging that Iran, the Iranian Ministry of Information and Security, and Syria materially supported Hamas in connection with Naftali's kidnapping and murder.
B. The Statutory Framework
Foreign states are immune from the jurisdiction of federal courts, subject to certain exceptions codified in the Foreign Sovereign Immunities Act of 1976 ("FSIA").
It is well understood that, over the years, Congress has amended the FSIA to allow "massive judgments of civil liability against nations that sponsor terrorism."
Leibovitch v. Islamic Republic of Iran
,
in which money damages are sought against a foreign state for personal injury or death that was caused by an act of torture, extrajudicial killing, aircraft sabotage, hostage taking, or the provision of material support or resources for such an act if such act or provision of material support ... is engaged in by an official, employee, or agent of such foreign state while acting within the scope of his or her office, employment, or agency.
28 U.S.C. § 1605A(a)(1).
Section 1605A also creates a federal cause of action directly against foreign governments. Under § 1605A(c), "national[s] of the United States" may sue certain foreign governments-those designated by the U.S. government as state sponsors of terrorism-for the acts described in § 1605A(a)(1) causing "personal injury or death."
In order to obtain a default judgment in a § 1605A action, plaintiffs must "establish[ ] [their] claim or right to relief by evidence satisfactory to the court."
The courts are not authorized to craft a body of federal common law in deciding FSIA terrorism exception claims.
See
Bettis v. Islamic Republic of Iran
,
Finally, foreign national family members of an American victim, who do not have a cause of action under § 1605A(c), "may continue to pursue claims under applicable ... foreign law."
Leibovitch
,
C. The Litigation in District Court
As noted above, the Fraenkels brought this action against Appellees in the District Court pursuant to the FSIA's terrorism exception, 28 U.S.C. § 1605A. Their complaint alleged that Appellees provided material support and resources to Hamas in furtherance of the hostage taking and murder of Naftali. Although the Fraenkels properly served Appellees with process under
1. Fraenkel I
On March 31, 2017, following a two-day evidentiary hearing on liability and damages, the District Court entered a default judgment in favor of the Fraenkels and against Appellees.
See
Fraenkel I
,
Abraham, Naftali's father, lacks a private right of action under § 1605A(c) because he is not a U.S. national. Nonetheless, the District Court concluded that it had jurisdiction over Abraham's complaint pursuant to § 1605A(a)(1) and that foreign sovereign immunity was waived pursuant to § 1605A(a)(2)(A)(ii)(I). Thus, the District Court determined that it could consider Abraham's Israeli law tort claims.
See
Owens
,
The only dispute now before this court concerns the District Court's damages awards to the plaintiffs. The U.S. national plaintiffs received damages pursuant to § 1605A(c), which authorizes "economic damages, solatium, pain and suffering, and punitive damages." The District Court awarded Naftali's estate $1 million for his pain and suffering, because "it is clear from the evidence Naftali Fraenkel suffered from the moment he was taken hostage up until his death," a span of about 30 minutes.
Fraenkel I
,
Naftali's mother and siblings also received solatium damages, which is compensation for loss of society and for emotional suffering or grief caused by the death of a family member. The District Court found that
[t]he Fraenkel family is obviously very close. Each member testified in detail about Naftali's role in the family (second oldest and second son) and what he meant in their lives specifically. The testimony provided a picture of a loving family, wherein Naftali played a central role in their spiritual and personal lives. Multiple family members testified about Naftali's musical ability and how it enriched their celebrations on the Sabbath and other holy days. Without question, the lives of each member of the family will be forever altered because Naftali is not with them.
Fraenkel I
,
The District Court further determined that punitive damages were warranted based on "the character of the defendants' act, ... the nature and extent of harm to the plaintiffs[,] ... the need for deterrence, and ... the wealth of the defendants."
The District Court awarded Abraham Fraenkel compensatory damages under Israeli law.
2. Fraenkel II
The Fraenkels moved to reconsider the District Court's damages awards, taking
particular issue with the amount of solatium damages awarded. They argued that the damages were insufficient to provide them fair compensation and that the awards departed from the remedial scheme established in
Estate of Heiser v. Islamic Republic of Iran
,
On June 28, 2017, the District Court denied the motion for reconsideration.
Fraenkel v. Islamic Republic of Iran
(
"Fraenkel II"
),
The District Court then elaborated on the reasoning behind the original amounts of damages awarded. The court made it clear that, in its view, the Fraenkels deserved damages awards below the amounts awarded to the plaintiffs in
Gates v. Syrian Arab Republic
,
First, the court found it significant that the victims in
Gates
were abducted and brutally beheaded "because they were U.S. citizens living abroad engaged in work at the behest of the United States government."
Second, in contrast to its initial decision, which stated that Naftali was kidnapped from Alon Shvut Junction,
see
Fraenkel I
,
The trial judge appeared to believe that the foregoing considerations and facts distinguished this case from Gates . Therefore, in the view of the District Court, this justified damages awards lower than those granted in Gates .
The Fraenkels appealed the denial of their motion for reconsideration. Because neither Iran nor Syria has entered an appearance in this litigation, the court appointed Georgetown University Law Center's Appellate Litigation Program as amicus curiae to present arguments in support of the District Court's judgment.
II. ANALYSIS
The issues on appeal are limited to the District Court's damages rulings. There is
no doubt that the District Court had jurisdiction over the Fraenkels' claims pursuant to § 1605A(a) and that this Court has jurisdiction over this appeal under
On appeal, the Fraenkels focus on three arguments. First, they claim that in setting the awards for solatium damages, the District Court relied on improper considerations and clearly erroneous factual findings. Second, the Fraenkels argue that the District Court misapplied Gates . And, finally, they contend that the District Court "broke from precedent" in failing to follow Heiser 's remedial scheme. We find merit in the first two contentions.
A. Standard of Review
We review the District Court's FSIA damages awards for abuse of discretion.
See
Owens
,
"A district court would necessarily abuse its discretion if it based its ruling on" an error of law, "a clearly erroneous assessment of the evidence,"
Cooter & Gell v. Hartmarx Corp.
,
B. The District Court's Judgment on Solatium Damages
In
Flatow v. Islamic Republic of Iran
,
As explained in
Flatow
, "[s]olatium is traditionally a compensatory damage which belongs to the individual heir personally for injury to the feelings and loss of decedent's comfort and society. It began as a remedy for the loss of a spouse or a parent. It has since expanded to include the loss of a child."
It is entirely possible to come to terms with the fact of death, and yet be unable to resolve the sense of anguish regarding the circumstances of death. This is particularly true where the death was sudden and violent. How the claimant learned of decedent's death, and whether there was an opportunity to say good-bye or view the body can be a significant factor contributing to the claimant's anguish. ...
The calculations for mental anguish and loss of society share some common considerations. First, the calculation should be based upon the anticipated duration of the injury. Claims for mental anguish belong to the claimants and should reflect anticipated persistence of mental anguish in excess of that which would have been experienced following decedent's natural death. When death results from terrorism, the fact of death and the cause of death can become inextricably intertwined, thus interfering with the prospects for anguish to diminish over time.
The nature of the relationship between the claimant and the decedent is another critical factor in the solatium analysis. If the relationship is strong and close, the likelihood that the claimant will suffer mental anguish and loss of society is substantially increased, particularly for intangibles such as companionship, love, affection, protection, and guidance. Numerous factors enter into this analysis, including: strong emotional ties between the claimant and the decedent; decedent's position in the family birth order relative to the claimant; the relative maturity or immaturity of the claimants; whether decedent habitually provided advice and solace to claimants; whether the claimant shared interests and pursuits with decedent; as well as decedent's achievements and plans for the future which would have affected claimants.
Finally, unlike lost wages, which can be calculated with a fair degree of mathematical certainty, solatium cannot be defined through models and variables. ... This is the paradox of solatium; although no amount of money can alleviate the emotional impact of a child's or sibling's death, dollars are the only means available to do so.
There is no authority to which we have been cited or which we have been able to find that applies "assumption of risk" principles to limit solatium damages under the FSIA. As a general matter, it is understood that "[a] plaintiff who voluntarily assumes a risk of harm arising from the negligent or reckless conduct of the defendant cannot recover for such harm."
Restatement (Second) of Torts § 496A (1965). However, as we explain below, it would make no sense to hold that a family assumes the risk of having a son abducted on public property and then killed by terrorists if they knew that terrorists sometimes kidnapped innocent people in the area in which he was abducted. This is not the law.
With this understanding of solatium damages, we turn now to plaintiffs' challenges to the District Court's decision in this case. As noted above, we reverse and remand the District Court's judgment with respect to the § 1605A(c) solatium damages awards because the court's judgment was based on impermissible considerations and clearly erroneous findings of fact. We also reverse and remand Abraham's damages award for the same reasons as the § 1605A(c) solatium damages awards. Although Abraham's damages were calculated under Israeli law, we default to the application of federal law when there is a lack of information regarding the proper calculation of damages under foreign law, as there is here.
See, e.g.
,
Thuneibat v. Syrian Arab Republic
,
1. Nationality of the Victim
The District Court indicated that the Fraenkels should receive solatium damages awards below the amounts awarded to the plaintiffs in
Gates
because Naftali was targeted for being Israeli while the victims in
Gates
were targeted for being U.S. nationals.
Fraenkel II
,
Section 1605A does not distinguish between U.S. national victims and dual-citizen victims in authorizing damages under its private right of action.
See
28 U.S.C. § 1605A(c). Indeed, § 1605A does not even require that the victim of the terrorist attack be a U.S. national for his American relatives to recover for his death.
See
The reason that Naftali was targeted is likewise irrelevant for purposes of his father Abraham's Israeli law claims. Abrogation of sovereign immunity under § 1605A(a), on which the court's jurisdiction over his claims depends, requires that the victim is a U.S. national. But that provision contains no qualifier on whether the victim's U.S. citizenship was relevant to the act. Therefore, it does not matter under the FSIA that Naftali was also an Israeli citizen and may have been targeted because of this.
Finally, the District Court's reasoning does not comport with its own interpretation of "solatium." As the court properly recognized, "solatium" damages are compensation
for "[m]ental anguish, bereavement and grief resulting from the fact of decedent's death."
Fraenkel I
,
On remand, the District Court should apply the considerations outlined in
Flatow
,
2. Assumption of Risk
The District Court also suggested that the Fraenkels should receive solatium damages awards below the amounts awarded to the plaintiffs in
Gates
because Naftali and his parents assumed the risk that he might be kidnapped and killed by terrorists.
See
Fraenkel II
,
Under common law theory, the doctrine of assumption of risk can be used to bar recovery for a negligent act when a plaintiff has voluntarily incurred a known risk.
See, e.g.,
Scoggins v. Jude
,
We can find no authority in which assumption of risk has been held to be a defense against an otherwise viable claim under the FSIA, or that has indicated it should result in a reduced damages award. The reason is simple: assumption of risk is not a defense when a plaintiff (or a victim under the FSIA) "is compelled to accept the risk in order to exercise or protect a right or privilege, of which the defendant has no privilege to deprive him."
Kanelos v. Kettler
,
Thus, the driver who voluntarily chooses to go out at night does not assume the risk of being hit by an inebriated motorist.
See
Knight v. Jewett
,
Furthermore, the District Court's finding that, when they were kidnapped, Naftali and his friends were "hitchhiking home at 10:30 at night from Gush Etzion Junction,"
Fraenkel II
,
Moreover, the District Court's own findings indicate that the Alon Shvut Junction was not unduly dangerous.
See
Finally, it should be noted that Congress clearly intended the FSIA's terrorism exception to deter states from supporting terrorism in areas of the world like the area in which Naftali lived and was killed.
See
Leibovitch
,
In re Islamic Republic of Iran Terrorism Litig.
,
Given Congress's consistent expansion of remedies under the FSIA for victims of state-sponsored terrorism overseas, in areas of the world subject to high levels of terrorism, it is hard to imagine that Congress meant for district courts to reduce solatium awards under § 1605A(c) for families like the Fraenkels who live in areas that may face an increased incidence of terrorist attacks. We therefore reverse and remand the District Court's judgment on the solatium damages awards so that the court may reassess these damages without any suggestion that Naftali and his immediate family "accepted the risk" that he might be kidnapped and killed by terrorists.
3. The Fraenkels' Reliance on Heiser
The Fraenkels additionally argue that the District Court "broke from precedent," supported by "extensive case law on damages in [FSIA] cases," by awarding solatium damages in amounts "dramatically lower than those received by thousands of similarly-situated plaintiffs." Appellants' Br. 29. According to the Fraenkels, this "case law" governing solatium awards is authoritatively summarized in
Estate of Heiser v. Islamic Republic of Iran
,
We recognize that many FSIA decisions issued by the District Court follow
Heiser
's solatium damages model.
See, e.g.
,
Estate of Brown v. Islamic Republic of Iran
,
We decline to impose
Heiser
's framework as a mandatory scheme under the FSIA. First, the FSIA, and the case law applying the statute, make it clear that the trial judge has discretion in determining solatium damages. The FSIA requires only that a plaintiff "establish[ ] his claim or right to relief by evidence satisfactory to the court."
Heiser
reflects a reasonable effort to chart solatium award baselines, but the figures merely reflect the summary of
judgments in prior cases-many of which, like this case, were not the product of contested litigation. While past solatium awards from comparable cases are appropriate sources of guidance for district courts, "different plaintiffs (even under FSIA) will prove different facts that may well (and should) result in different damage awards."
Fraenkel II
,
Indeed, not all District Court decisions awarding solatium damages to family members of a decedent have applied the
Heiser
framework.
See
Estate of Bayani v. Islamic Republic of Iran
,
As explained above, we are obliged to leave it to the wise discretion of our judicial colleagues on the District Court to determine the damages that are due under the FSIA. And, as we have explained, the District Court does not abuse its discretion unless it issues a judgment based on an error of law, "a clearly erroneous assessment of the evidence,"
Cooter & Gell
,
C. Pain-and-Suffering and Punitive Damages
Finally, the Fraenkels have objected, albeit in a relatively cursory fashion, to the pain-and-suffering and punitive damages amounts awarded by the District Court. Appellants' Br. 52-54. We have fully considered the Fraenkels' objections to these awards and we find no merit in them. The District Court's findings with respect to these awards were consistent with the requirements of the law, reasonable, supported by adequate explanation, and fully within the bounds of its discretion.
III. CONCLUSION
For the foregoing reasons, we reverse the District Court's judgment on solatium damages awards and remand for further consideration consistent with this opinion. We affirm the District Court's pain-and-suffering and punitive damages awards.
Reference
- Full Case Name
- Rachel Devora Sprecher FRAENKEL, Individually, as Personal Representative of the Estate of Yaakov Naftali Fraenkel, and as the Natural Guardian of Plaintiffs A.H.H.F., A.L.F., N.E.F., and S.R.F., Et Al., Appellants v. ISLAMIC REPUBLIC OF IRAN, MINISTRY OF FOREIGN AFFAIRS, ET AL., Appellees
- Cited By
- 77 cases
- Status
- Published