Rita Bathiard v. Islamic Republic of Iran
Rita Bathiard v. Islamic Republic of Iran
Opinion
On April 18, 1983, and September 20, 1984, the militant group Hezbollah detonated car bombs outside United States diplomatic facilities in Beirut, Lebanon, killing dozens and wounding many more. On August 7, 1998, truck bombs exploded outside the U.S. embassies in Nairobi, Kenya, and Dar es Salaam, Tanzania, killing more than two hundred and injuring more than a thousand. These two bombings were the work of al Qaeda. In the decades since, the Islamic Republic of Iran has been linked to all four bombings, while the Republic of Sudan's support for al Qaeda has implicated it in the 1998 attacks.
Foreign sovereigns are generally immune from suit in U.S. courts. However, district courts in this Circuit have found Iran and Sudan liable for the attacks in numerous suits filed by victims and their families under the terrorism exception of the Foreign Sovereign Immunities Act (FSIA), the statute governing the amenability of foreign nations to lawsuits in the United States. The FSIA's terrorism exception was first enacted in 1996 but was replaced in 2008 with, inter alia , a more expansive provision allowing for suits by non-U.S. nationals.
In this consolidated opinion, we address six cases arising from the Beirut, Nairobi, and Dar es Salaam attacks. Plaintiffs in three of the suits are family members or estates of victims of the 1998 bombings. The plaintiffs in these cases named Sudan and Iran as defendants. The remaining three actions seek damages from Iran for deaths and injuries resulting from the 1983 and 1984 attacks. The first five suits were assigned to the same District Court Judge, including all of the complaints against Sudan, which successfully moved to dismiss the claims against it as untimely. Iran, in contrast, failed to appear to defend the complaints raised against it. The plaintiffs moved for default judgment against Iran. The District Court, however, acted sua sponte to consider whether the complaints against Iran were timely. After briefing from the parties, the District Court ruled that the claims against Iran were untimely, denied the motions for default judgment, and dismissed plaintiffs' actions. The District Court Judge assigned to the sixth case followed suit on the same grounds.
All plaintiffs now appeal the dismissals of their claims against Iran, contending that the District Courts erred in raising the statute of limitations sua sponte and in dismissing their complaints as untimely. One group of plaintiffs also challenges the denial of motions for relief from judgment that they filed after their claims were dismissed.
We do not reach the statute of limitations issue or the post-judgment motions. Rather, we conclude that the District Court lacks authority to sua sponte raise a forfeited statute of limitations defense in an FSIA terrorism exception case, at least where the defendant sovereign fails to appear. We therefore reverse the judgments of the District Courts, vacate the dismissals of the complaints, and remand for further proceedings.
I. BACKGROUND
A. The FSIA and the Terrorism Exception
The FSIA, enacted in 1976, "provides the sole means for suing a foreign sovereign in the courts of the United States."
Owens v. Republic of Sudan
,
A foreign state shall not be immune from the jurisdiction of courts of the United States or of the States in any case not otherwise covered by this chapter 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 or resources 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) ;
see also
Congress adopted the first version of the terrorism exception, codified until its repeal at
Importantly, the new terrorism exception makes causes of action available not only to U.S. nationals, but also to any "claimant" or "victim" who was an employee of the U.S. government or of a U.S. government contractor at the time of a terrorist act and was acting within the scope of his or her employment, or was a member of the armed forces. 28 U.S.C. § 1605A(a)(2)(A)(ii) ;
see also
Owens
,
An action may be brought or maintained under this section if the action is commenced, or a related action was commenced under section 1605(a)(7) (before the date of the enactment of this section) ... not later than the latter of- (1) 10 years after April 24, 1996; or (2) 10 years after the date on which the cause of action arose.
28 U.S.C. § 1605A(b).
Another provision, enacted as § 1083(c) of the NDAA, pertaining to the "Application to Pending Cases," also concerns the timeliness of claims arising under the terrorism exception. This provision states:
(3) Related actions.-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, or section 589 of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1997 (as contained in section 101(c) of division A of Public Law 104-208 ), any other action arising out of the same act or incident may be brought under section 1605A of title 28, United States Code, if the action is commenced not later than the latter of 60 days after- (A) the date of the entry of judgment in the original action; or (B) the date of the enactment of this Act.
122 Stat. at 343 (codified at 28 U.S.C. § 1605A note).
Unaltered by the NDAA is
[n]o judgment by default shall be entered by a court of the United States or of a State against a foreign state, a political subdivision thereof, or an agency or instrumentality of a foreign state, unless the claimant establishes his claim or right to relief by evidence satisfactory to the court.
This provision is similar to Federal Rule of Civil Procedure 55(d), which provides that default judgment may be entered against the United States "only if the claimant establishes a claim or right to relief by evidence that satisfies the court." Fed. R. Civ. P. 55(d) ;
see
Owens
,
B. Terrorist Attacks and Prior Litigation
The enactment of the original terrorism exception in 1996 led to a significant number of actions in U.S. courts by victims of terror attacks and their families. Iran has been a frequent defendant.
See
Owens
,
The four attacks giving rise to the cases at issue here have each been the subject of prior FSIA litigation in which district courts have found that Iran bears partial responsibility for the plaintiffs' injuries.
See, e.g.
,
Dammarell v. Islamic Republic of Iran
,
C. The Cases on Appeal
The six cases on appeal were filed between 2014 and 2016. The three cases arising out of the 1998 embassy bombings name both Sudan and Iran as defendants, as well as Sudan's Ministry of the Interior and Iran's Ministry of Information and Security. The cases arising out of the Beirut attacks name only Iran and its ministry. The first five cases to be filed were assigned to the same District Court Judge, while the sixth was assigned to a different District Court Judge. As detailed below, the District Courts dismissed each case as untimely, either by granting Sudan's motions to dismiss the claims against it, or by sua sponte dismissing the claims against Iran. The plaintiffs now appeal the dismissals of their claims against Iran, arguing that the District Courts erred in raising the statute of limitations sua sponte and in dismissing the claims as untimely.
This court appointed counsel to appear as amicus curiae ("Appointed Amicus") in support of the District Courts' orders on appeal. We appreciate the outstanding efforts by appointed counsel and the Student Attorneys who appeared with them.
1. Sheikh, Kinyua, and Chogo Cases
The Sheikh , Kinyua , and Chogo cases, which were considered together in the District Court and consolidated on appeal, arise out of the 1998 embassy bombings in Nairobi and Dar es Salaam and name both Sudan and Iran and their ministries as defendants. The Sheikh plaintiffs, who filed a complaint in the District Court on December 11, 2014, are four family members and the administrator of the estate of Fahrat Mahmood Sheikh, who was killed in the Nairobi bombing and was employed by either the embassy or a U.S. government contractor operating there. See Complaint at 5-6, Sheikh v. Republic of the Sudan , No. 1:14-cv-02090-JDB (D.D.C. Dec. 11, 2014), reprinted in Appendix at 101-02, Sheikh v. Republic of the Sudan , No. 18-7060 (" Sheikh App."). The complaint asserts claims including wrongful death, loss of consortium, intentional infliction of emotional distress, and civil conspiracy. Complaint at 24-29, Sheikh , No. 1:14-cv-02090-JDB (D.D.C. Dec. 11, 2014), Sheikh App. 120-25. None of the plaintiffs is a U.S. national.
Plaintiffs in Kinyua , who filed their complaint on December 15, 2014, are seven family members of Moses Magothe Kinyua, another Nairobi embassy employee or contractor who was severely injured in the bombing and died in 2012. See Complaint at 5-6, Kinyua v. Republic of the Sudan , No. 1:14-cv-02118-JDB (D.D.C. Dec. 15, 2014), reprinted in Sheikh App. 133-34; Sheikh App. 229. Plaintiffs in Chogo , who include forty-one employee or contractor victims of the Nairobi attack and ten family members, as well as seven employee or contractor victims of the Dar es Salaam bombing, filed their complaint on June 19, 2015. See Complaint at 10-20, Chogo v. Republic of the Sudan , No. 1:15-cv-00951-JDB (D.D.C. June 19, 2015), reprinted in Sheikh App. 168-78. Both complaints assert claims that are similar to those in the Sheikh complaint, though the Chogo complaint also includes an assault and battery claim. See Complaint at 25-28, Kinyua , No. 1:14-cv-02118-JDB (D.D.C. Dec. 15, 2014), Sheikh App. 153-56; Complaint at 42-47, Chogo , No. 1:15-cv-00951-JDB (D.D.C. June 19, 2015), Sheikh App. 200-05. With the exception of one U.S. citizen plaintiff in Chogo , the plaintiffs in both cases are either Kenyan or Tanzanian nationals.
Each of the foregoing three complaints alleges that both Sudan and Iran provided material support to the members of al Qaeda who perpetrated the embassy bombings and that the terrorism exception therefore applies.
See
Complaint at 2-4,
Sheikh
, No. 1:14-cv-02090-JDB (D.D.C. Dec. 11, 2014),
Sheikh
App. 98-100; Complaint at 2-4,
Kinyua
, No. 1:14-cv-02118-JDB (D.D.C. Dec. 15, 2014),
Sheikh
App. 130-32; Complaint at 7-9,
Chogo
, No. 1:15-cv-00951-JDB (D.D.C. June 19, 2015),
Sheikh
App. 165-67. Iran failed to appear in any of the three cases, and Sudan never returned service of the
Chogo
complaint. However, Sudan moved to dismiss the
Sheikh
and
Kinyua
complaints on various grounds, including that the claims were untimely.
See
Sheikh v. Republic of the Sudan
,
The District Court then addressed the plaintiffs' claims against Iran. Rather than rule on motions for default judgment that the plaintiffs had filed, the District Court indicated that the claims against Iran appeared to be untimely.
After reviewing the parties' briefs on the statute of limitations issue, the District Court issued a consolidated opinion that denied plaintiffs' pending motions for default judgment against Iran and dismissed the claims against Iran with prejudice.
Sheikh v. Republic of the Sudan
,
The District Court thought that "[t]he comity owed to foreign sovereigns, particularly in default scenarios, ... counsels in favor of raising the timeliness issue here."
Id.
at 53. "Whatever Iran's misdeeds," the court asserted, "it remains a foreign country equal in juridical stature to the United States, and the federal courts must respect 'the independence, the equality, and dignity of the sovereign.' "
Id.
at 52 (quoting
The Schooner Exch. v. McFaddon
, 11 U.S. (7 Cranch) 116, 123,
In light of these and other concerns, the District Court concluded that it was appropriate for it to raise sua sponte the statute of limitations, deny the motions for default judgment, and dismiss all three sets of claims against Iran as untimely. Id. at 55. The Chogo plaintiffs were given additional time to obtain return of service from Sudan, id. at 55-56, but they elected to dismiss their Sudan claims instead, see Sheikh App. 49-50.
Following the District Court's ruling, the
Kinyua
plaintiffs filed a motion for post-judgment relief under Federal Rules of Civil Procedure 59(e) and 60(b), seeking an opportunity to explain that they did not file their complaint earlier because they had thought they were parties to an earlier suit by other members of their family.
See Sheikh
App. 217-25. The District Court denied the motion.
Kinyua v. Republic of the Sudan
,
2. Maalouf and Salazar Cases
The
Maalouf
and
Salazar
cases, consolidated for appeal, arise out of the 1984 and 1983 Beirut attacks, respectively. The plaintiffs in
Maalouf
, who filed a complaint against Iran on February 17, 2016, and an amended complaint on July 21, 2016, are the brother and the estates of three other family members of Edward Maalouf, a Lebanese national and employee of the U.S. embassy in Beirut who was killed in the 1984 bombing. Amended Complaint at 2-4,
Maalouf v. Islamic Republic of Iran
, No. 1:16-cv-00280-JDB (D.D.C. July 21, 2016),
reprinted in
Appendix at 35-37,
Maalouf v. Islamic Republic of Iran
, No. 18-7052 ("
Maalouf
App."). The plaintiffs are also citizens of Lebanon. Amended Complaint at 3-4,
Maalouf
, No. 1:16-cv-00280-JDB (D.D.C. July 21, 2016),
Maalouf
App. 36-37. Asserting claims that include wrongful death, loss of solatium, and intentional infliction of emotional distress, the amended complaint explains that while other family members of the decedent had filed suit and received a final judgment against Iran in
Estate of Doe v. Islamic Republic of Iran
,
The
Salazar
plaintiffs, who filed a complaint asserting claims of wrongful death and intentional infliction of emotional distress against Iran on July 22, 2016, are two sons of Staff Sergeant Mark Salazar, a member of the U.S. military killed in the 1983 embassy bombing.
See
Complaint at 1-3, 5-6,
Salazar v. Islamic Republic of Iran
, No. 1:16-cv-01507-JDB (D.D.C. July 22, 2016),
reprinted in Maalouf
App. 72-74, 76-77. Although the Salazars are American citizens and thus were eligible to file suit before the enactment of § 1605A, they assert that until 2016 they were unaware that they could recover damages from Iran through litigation.
See Maalouf
App. 107-08, 116. They further explain that they did not join an earlier suit concerning their father's death, in which final judgment was entered against Iran on May 12, 2005,
Salazar v. Islamic Republic of Iran
,
Both cases were assigned to the same District Court Judge who presided over the Sheikh , Kinyua , and Chogo cases. On the same day when it dismissed the claims against Sudan in Sheikh and Kinyua , the District Court issued an order to the Maalouf plaintiffs to show cause as to why their claims against Iran should not similarly be dismissed as untimely. See Maalouf App. 16-17. Upon review of their response, the District Court issued an order declining to dismiss the claims at that time. See id. at 33.
The
Maalouf
plaintiffs then filed and served their amended complaint and moved for entry of a default judgment against Iran.
Id.
at 46-54. The
Salazar
plaintiffs, who filed their complaint after the show-cause order in
Maalouf
, also filed a motion for default judgment.
Id.
at 83-92. Despite its earlier decision not to dismiss
Maalouf
on timeliness grounds, the District Court denied the motions for default judgment and dismissed both
Maalouf
and
Salazar
in a consolidated opinion largely identical in structure, reasoning, and language to the opinion dismissing
Sheikh
,
Kinyua
, and
Chogo
, which was issued the same day.
Maalouf v. Islamic Republic of Iran
,
3. Bathiard Case
Finally, plaintiffs in Bathiard are the widow, children, and estate of Cesar Bathiard, a Lebanese national and employee of the U.S. embassy in Beirut who was killed in the 1983 bombing. Complaint at 2-3, Bathiard v. Islamic Republic of Iran , No. 1:16-cv-01549-CRC (D.D.C. Aug. 1, 2016), reprinted in Appendix at 7-8, Bathiard v. Islamic Republic of Iran , No. 18-7122 (" Bathiard App."). Their complaint, filed on August 1, 2016, and assigned to a different District Court Judge than the five other cases at issue, names Iran and its Ministry of Information and Security as defendants and asserts claims including wrongful death, survival, and loss of solatium. Complaint at 6-9, Bathiard , No. 1:16-cv-01549-CRC (D.D.C. Aug. 1, 2016), Bathiard App. 11-14.
When the plaintiffs moved for entry of a default judgment against Iran, which once again failed to appear, the District Court directed them to file supplemental briefing addressing whether the action was timely.
See
Bathiard v. Islamic Republic of Iran
,
II. ANALYSIS
A. Standard of Review
Whether courts have discretion to invoke a statute of limitations
sua sponte
is a question of law and is therefore reviewed
de novo
.
See
Patchak v. Jewell
,
B. Discussion
The only question that we must reach is whether a federal court has discretion to sua sponte invoke the terrorism exception's statute of limitations on behalf of defendants who have not entered an appearance or otherwise sought to respond to complaints against them. After reviewing the applicable principles governing the forfeiture of affirmative defenses, and the Supreme Court's instructive jurisprudence on the narrow set of situations in which a court may raise affirmative defenses on its own motion, we conclude that the District Courts erred in taking sua sponte action in the cases presented.
1. Forfeiture of Affirmative Defenses
We start with fundamental principles governing affirmative defenses, including statutes of limitations. As the Supreme Court has explained, "[o]rdinarily in civil litigation, a statutory time limitation is forfeited if not raised in a defendant's answer or in an amendment thereto."
Day v. McDonough
,
We pause here to note the distinction between forfeiture and waiver, terms which "though often used interchangeably by jurists and litigants ... are not synonymous."
Hamer v. Neighborhood Hous. Servs. of Chi.
, --- U.S. ----,
Some statutes of limitations, of course, are jurisdictional. "When that is so, a litigant's failure to comply with the [time] bar deprives a court of all authority to hear a case."
United States v. Kwai Fun Wong
, --- U.S. ----,
In
Owens v. Republic of Sudan
, we applied this searching mode of review to examine 28 U.S.C. § 1605A(b), the FSIA terrorism exception's statute of limitations.
See
At issue in
Owens
were eight separate default judgments against Sudan in suits arising from the 1998 embassy bombings. After some of the judgments had been entered, Sudan retained counsel and appeared in the District Court to assert various defenses in motions to vacate, including that three of the suits were untimely.
See
id.
at 768. The District Court denied the motions to vacate.
Id.
In its appeal, Sudan argued that the terrorism exception's statute of limitations is jurisdictional, a claim we rejected.
See
id.
at 804. We further concluded that, because it had failed to timely raise a statute of limitations defense in the three allegedly untimely suits, Sudan had forfeited that defense.
See id.
;
see also
id.
at 801 (citing
Harris
,
Iran has failed to enter an appearance or submit a filing at any stage of these cases, let alone timely raise the terrorism exception's statute of limitations. We therefore conclude that it has forfeited the defense. We disagree with assertions and insinuations by appellants and amici supporting them that Iran has waived rather than forfeited a statute of limitations defense by engaging in a purportedly willful default. Appellants and amici contend that because Iran participates in other litigation in the United States, it has made a deliberate choice in not appearing and asserting any affirmative defenses here. But whatever Iran's decisions with respect to other litigation, we agree with the Appointed Amicus that Iran's complete absence here deprives us of any record or basis upon which to reliably determine that it has intentionally relinquished or abandoned a defense.
We are puzzled, however, by the District Court's statement in
Sheikh
that, in cases of default, "the affirmative defense at issue has not actually been waived, and the normal adversarial model upon which the concept of affirmative defenses is based has broken down."
2. Sua Sponte Action on Affirmative Defenses
Having found that Iran forfeited a statute of limitations defense in each of these cases by failing to assert it in response to the pleadings in the District Court, the issue we must address is whether, and under what circumstances, a court may nonetheless raise a forfeited affirmative defense on behalf of an absent defendant. Specifically, does the District Court have authority to raise sua sponte the FSIA terrorism exception's statute of limitations when it has been forfeited by a defendant who is entirely absent from the proceedings? We conclude that the answer is no.
It is well established that a statute of limitations, like other affirmative defenses, generally may not be invoked by the court on its own motion.
See, e.g.
,
United States v. Mitchell
,
The purpose of a nonjurisdictional statute of limitations is not to shield courts from challenges that may arise in adjudicating cases in which motions for default judgment have been filed. Regardless of the difficulties such cases can present, courts are constrained by the principle of party presentation, which is "basic to our adversary system."
Wood
,
The Supreme Court has cautioned that freely permitting departures from this foundational norm and allowing courts to
sua sponte
raise affirmative defenses as a matter of course would "erod[e] the principle of party presentation so basic to our system of adjudication."
Arizona v. California
,
Review of the decisions establishing these principles reveals both their narrowness and the common feature that explains the findings made by the Court. We begin with
Day v. McDonough
. In addition to discussing the principles concerning affirmative defenses noted above, the Court in
Day
considered whether a District Court had properly dismissed as untimely a state prisoner's federal habeas corpus petition, even though the respondent state had both answered the petition without raising a statute of limitations defense and had conceded the petition's timeliness.
The basis of the Court's judgment in
Day
was its recognition that the AEDPA statute of limitations and "other threshold barriers" facing habeas petitioners "implicat[e] values beyond the concerns of the parties."
Id. at 205,
In
Wood v. Milyard
, the Court considered whether
Day
's holding extends to courts of appeals. In doing so, the Court added further clarity to the rationale underlying its conclusions in
Day
and a predecessor case,
Granberry v. Greer
,
Turning then to
Day
, the Court in
Wood
explained that "[a]ffording federal courts leeway to consider a forfeited timeliness defense was appropriate [in that case] ... because AEDPA's statute of limitations, like the exhaustion doctrine, 'implicat[es] values beyond the concerns of the parties,' " namely the values that the Second Circuit had identified in
Acosta
.
Id.
at 472,
The Supreme Court's analysis in Wood thus confirms that the prohibition against sua sponte invocation of forfeited affirmative defenses is subject to very narrow exceptions that may exist when certain institutional interests of the judiciary are implicated and both parties are present in the litigation.
The Court's decision in
Arizona v. California
is consistent with the cases addressing
sua sponte
action in the habeas context. In
Arizona
, the Court stated that it "might be appropriate in special circumstances" for a court to raise
res judicata
defenses on its own motion.
In all of these decisions, moreover, the defendant was present and participated in the litigation.
See, e.g.
,
Day
,
After all, the defense is for the defendant to choose to assert (or not) in the first instance. And, as we have already noted, it would be an abuse of discretion for a court to override a defendant's deliberate waiver of a defense.
See
Wood
,
In sum, it is clear that federal courts may depart from the party presentation principle and rules of forfeiture only in distinct and narrow circumstances in which the judiciary's own interests are implicated and the forfeiting party is present in the litigation. We conclude that no such authority exists for a federal court to raise the FSIA terrorism exception's statute of limitations on behalf of an entirely absent defendant. Unlike in the AEDPA context or in the case of a res judicata defense, no institutional interests of the judiciary are implicated when a § 1605A claim against an absent defendant proceeds to a default judgment, regardless of who the defendant is or how much time has passed since the terrorist act giving rise to the action took place. We find no merit in the District Courts' conclusions to the contrary or in the Appointed Amicus' arguments in support of the District Courts' rulings.
To begin, the District Courts were mistaken to raise international comity concerns as a justification for acting
sua sponte
. The Supreme Court has held clearly and repeatedly that with the FSIA, Congress established "a comprehensive set of legal standards governing claims of immunity in every civil action against a foreign state or its political subdivisions, agencies or instrumentalities."
Verlinden B.V. v. Cent. Bank of Nigeria
,
In other words, as the
Maalouf
and
Bathiard
appellants correctly observe, Congress has already determined the degree of care that courts should show for the interests of foreign sovereigns. Particularly given the Constitution's exclusive assignment of responsibility for international relations to the political branches,
Chi. & S. Air Lines v. Waterman S.S. Corp.
,
We are unmoved by the Appointed Amicus's argument that foreign nations' treatment in U.S. courts may impact "the reciprocal foreign litigation interests of the United States when it is sued in any foreign court." Brief for Court-Appointed Amicus Curiae in Support of the District Courts' Orders in No. 18-7052, et al., No. 18-7060, et al., and No. 18-7122 at 22-23,
Maalouf v. Islamic Republic of Iran
, No. 18-7052 (Dec. 19, 2018) ("Appointed Amicus Br."). This is a concern for the political branches, not the judiciary. As the
Sheikh
appellants note, the Supreme Court has been clear in its FSIA jurisprudence that it is not for the courts "to consider the worrisome international-relations consequences" of adjudicating actions under the FSIA.
NML Capital
,
In enacting the FSIA, Congress directed the courts to respect the sovereignty of foreign nations who respond when sued and assert timely, valid defenses. However, Congress also made it clear that default judgments may issue in actions arising under the terrorism exception.
See
We disagree with the District Courts and the Appointed Amicus that
Nor are there any institutional interests of the judiciary implicated by the obligations that § 1608(e) places on district courts. While the statute directs district courts to perform a screening function to evaluate the merits of a case before issuing a default judgment, this certainly does not justify the
sua sponte
invocation of a statute of limitations defense. An argument that institutional interests are implicated
merely because § 1608(e) requires the district courts to assess the merits of a claim before granting default judgment rings hollow. Such a conclusion would permit the "institutional interest" exception to completely swallow the party presentation principle and rules of forfeiture. In addition, given the complexity of the relevant statute of limitations provisions, 28 U.S.C. § 1605A(b) and § 1083(c)(3) of the NDAA, it is far from clear that resolving claims on limitations grounds is easier than assessing the merits. Furthermore, in assessing the merits of a claim under § 1608(e), the courts are granted broad discretion to determine what degree and kind of evidence is satisfactory.
See
Han Kim
,
Furthermore, as noted in
Owens
, § 1608(e)"mirrors a provision in Federal Rule of Civil Procedure 55(d) governing default judgments against the U.S. Government."
The Appointed Amicus also expresses concern that district courts "bear the brunt of the institutional burden when an untimely claim proceeds to the special procedures for default judgment under Section 1608(e)."
Id.
at 31. We disagree with the assumption that underlies this argument,
i.e.
, that a purportedly untimely § 1605A claim necessarily imposes a greater burden on courts than a timely claim. As we recognized in
Owens
, the significant evidentiary challenge in FSIA terrorism cases with a defaulting defendant is that "firsthand evidence and eyewitness testimony is difficult or impossible to obtain from an absent and likely hostile sovereign."
Finally, the Appointed Amicus claims that allowing untimely claims to proceed will reduce the payments from the United States Victims of State Sponsored Terrorism Fund,
see
For the reasons indicated above, we hold that the District Courts here lacked authority or discretion to
sua sponte
raise the terrorism exception's statute
of limitations to dismiss the six cases before us. As the
Sheikh
appellants cogently observe, approving the approach taken by the District Courts and defended by the Appointed Amicus would be tantamount to giving the courts "
carte blanche
to depart from the principle of party presentation basic to our adversary system," a result that the Supreme Court explicitly warned against in
Wood
.
3. Remaining Issues
Because we find that the District Courts had no authority to act sua sponte in these cases, we have no need to reach the parties' arguments concerning the courts' exercise of the discretion that they claimed, the timeliness of the complaints, or the denial of the Kinyua plaintiffs' post-judgment motions. We also take no position on the merits of the six cases.
In addition, we need not address whether a district court would lack authority to raise a statute of limitations defense in an FSIA case in which the United States participates in the proceedings and asks the court to rule in favor of an absent foreign sovereign on statute of limitations grounds. Nor do we address whether the correct interpretation of the terrorism exception's timeliness provisions, 28 U.S.C. § 1605A(b) and § 1083(c)(3) of the NDAA, is in fact as straightforward as the District Courts assumed.
III. CONCLUSION
For the foregoing reasons, we reverse the judgments of the District Courts, vacate the dismissals of the complaints, and remand the cases for further proceedings.
So ordered.
Reference
- Full Case Name
- Henri MAALOUF, Et Al., Appellants v. ISLAMIC REPUBLIC OF IRAN and Iranian Ministry of Information and Security, Appellees Nasrin Akhtar Sheikh, as the Spouse of Fahrat Mahmood Sheikh, an Employee of the United States Government or an Employee of a Contractor for the United States Government Deceased, Et Al., Appellants v. Ministry of the Interior of the Republic of Sudan, Et Al., Appellees Rita Bathiard, on Her Own Behalf and as Personal Representative of the Estate of Cesar Bathiard, Et Al., Appellants v. Islamic Republic of Iran and Iranian Ministry of Information and Security, Appellees
- Cited By
- 67 cases
- Status
- Published