Estate of Klieman by and Through Kesner v. Palestinian Auth.
Opinion
During the Second Intifada, Palestinian terrorists ambushed an Israeli public bus traveling in the West Bank and opened fire, killing an American schoolteacher, Esther Klieman. Klieman's estate (along with some survivors and heirs) sued numerous defendants-including the Palestinian Authority ("PA") and Palestinian Liberation Organization ("PLO")-under the Anti-Terrorism Act ("ATA"),
In
Livnat v. Palestinian Authority
,
We agree. We conclude that the district court did not abuse its discretion in agreeing, in light of the intervening Supreme Court case of
Daimler AG v. Bauman
,
* * *
On March 24, 2002, a group of terrorists carried out an attack on an Israeli bus in the West Bank, killing Esther Klieman. See
Estate of Klieman
,
Plaintiffs allege among other things that the PA/PLO, acting "by and through their officials, employees and agents," had "provided" other defendants "weapons, instrumentalities, permission, training, and funding for their terrorist activities," along with "safe haven and a base of operations," and encouraged certain defendants to "plan and execute acts of violence, murder and terrorism against innocent civilians in Israel, Gaza and the West Bank"-including the attack that killed Klieman. Compl. ¶ 40; see also Compl. ¶¶ 41-49. Besides asserting various tort claims, plaintiffs alleged violations of the ATA,
Defendants moved in May 2006 to dismiss the case for lack of personal jurisdiction, asserting among other problems that they had insufficient "minimum contacts" with the United States. See Defs.' Mot. to Dismiss for Lack of Personal Jurisdiction 3 (May 30, 2006), ECF No. 55. As to the PA/PLO, the district court initially ruled, in December 2006, that it could exercise general jurisdiction over these defendants.
Estate of Klieman v. Palestinian Auth.
,
In February 2014, defendants filed a motion for reconsideration of the 2006 and 2008 rulings, invoking the requirements for general personal jurisdiction set forth in
Daimler
,
Following the roadmap laid out above, we affirm.
* * *
The due process limits on judicial exercise of personal jurisdiction over non-resident defendants take two forms: "general or all-purpose jurisdiction, and specific or conduct-linked jurisdiction."
Daimler
,
General jurisdiction entails a relatively demanding standard-reflecting its
plenary reach over a defendant's affairs. "A court may assert general jurisdiction over foreign ... corporations to hear any and all claims against them when their affiliations with the [forum] are so 'continuous and systematic' as to render them
essentially at home
in the forum ...."
Daimler
,
Specific jurisdiction's more limited scope justifies a less onerous standard. First, a defendant need not be "at home" in the forum. Second, unlike with general jurisdiction, minimum contacts must stem from or relate to conduct giving rise to the suit. Plaintiffs must establish a relationship among "the defendant, the forum, and the litigation."
Walden v. Fiore
,
Where, as here, a claim arises under federal law and, as the parties agree, a "defendant is not subject to jurisdiction in any state's court of general jurisdiction," Fed. R. Civ. P. 4(k)(2)(A) ; see
Estate of Klieman
,
* * *
In the wake of Daimler , defendants moved for reconsideration of the court's 2006 and 2008 rulings on personal jurisdiction. The district court granted the request, and plaintiffs now object.
We review the district court's decision to reconsider the issue for abuse of discretion. See, e.g.,
Capitol Sprinkler Inspection, Inc. v. Guest Servs., Inc.
,
Although the PA/PLO raised its personal jurisdiction defense in a pre-answer motion under Rule 12(b)(2), thereby avoiding forfeiture under Rule 12(h)(1), the plaintiffs argue that defendants' failure to raise the claim promptly after the Supreme Court's decision in
Goodyear
,
Plaintiffs point out that "more than 250 federal court cases" have "discussed
Goodyear
's 'at home' standard, including eighteen circuit court cases and three cases in this District." Klieman Br. 24 (quoting
Gilmore v. Palestinian Interim Self-Gov't Auth.
,
Defendants respond that Goodyear , and this circuit's post- Goodyear but pre- Daimler cases, show sufficient room for nuance as to the status and reach of Goodyear 's "at-home" language that it was not unreasonable to seek reconsideration only after Daimler . And they argue that the timing of their motion was not prejudicial. See PA/PLO Br. 24-27.
In finding the motion for reconsideration not barred by delay, the district court acknowledged that
Goodyear
had introduced the "at-home" language, but argued that "the reach of this language was not immediately clear," citing the 2013 supplement of a leading procedure treatise for the view that, "[i]f the
Goodyear
opinion stands for anything ... it simply reaffirms that defendants must have continuous and systematic contacts with the forum in order to be subject to general jurisdiction."
Estate of Klieman
,
We see no abuse of discretion in the ruling on forfeiture (which the district court styles as a "waiver" analysis). On the one hand, in light of in-circuit cases elaborating on the "at-home" doctrine pre-
Daimler
-and defense counsel's arguments on behalf of PA/PLO in other suits-there is some force to plaintiffs' argument that defendants' delay was unjustifiable. But a few points are dispositive in favor of defendants' view. First, as a general matter, a district court has leeway "always" to "reconsider[ ]" interlocutory orders not subject to the law of the case doctrine "prior to final judgment." "[S]o long as the court has jurisdiction over an action, it should have complete power over interlocutory orders made therein and should be able to revise them when it is consonant with equity to do so."
Langevine v. Dist. of Columbia
,
To be sure, under some circumstances we would be swayed by plaintiffs' argument that they have been prejudiced by the delay in the defendants' Goodyear - Daimler motion-coupled with their reasonable reliance on the district court's finding of general personal jurisdiction and the closure of fact discovery. But here, as we'll develop later in this opinion, plaintiffs have been unable to make a showing that discovery on their specific jurisdiction theory could have yielded evidence to support a finding of specific jurisdiction, and there is no sign that the district court relied at all on the "closure" of discovery in deciding to deny plaintiffs' motion for further discovery to explore facts relevant to specific jurisdiction.
Our approach is in keeping with
Gilmore v. Palestinian Interim Self-Government Authority
,
As to the motion for reconsideration viewed separately from the delay issue, the district court noted that the Federal Rules of Civil Procedure do not state standards governing such a motion before judgment,
Estate of Klieman
,
We believe the district court acted within the bounds of its discretion in finding reconsideration appropriate. Two criteria of the
Vitamins
test seem applicable-"(1) an intervening change in the law" and "(3) a clear error of law in the first order." Given that the
governing
law applicable at
the time of the district court's ruling was
Daimler
, see, e.g.,
Landgraf v. USI Film Prod.
,
* * *
We now take up the court's disposition of the merits of the motion, including plaintiffs' effort to establish specific jurisdiction, which we review de novo. See
Livnat
,
Finding plaintiffs' effort to salvage the earlier ruling in favor of general personal jurisdiction unavailing, we turn to the substance of plaintiffs' theory of specific jurisdiction.
To advance that theory, plaintiffs sought to develop a link between the killing of Esther Klieman and the furthering of PA/PLO goals in the United States. They offered a hypothesis building on these elements: First, the PA/PLO supported acts of terrorism during the Second Intifada in the early 2000s, targeting Israelis and areas frequented by Americans. Second, they pursued this terrorist program in part with the goal of advancing their "campaign in the United States to influence or affect United States foreign policy as it related to Israel and the Palestinian territories," Klieman Br. 32; see also id . at 42, 43, carrying on the campaign through the use of U.S. offices, fundraising, lobbying, speaking engagements, as well as commercial dealings, id . at 32. Third, as an integral part of this blended strategy of terrorism and diplomacy, they facilitated the killing of Esther Klieman.
The first two elements may at first blush seem counterintuitive, but their logic is basically that a spate of terrorism claiming American (and Israeli) lives could impel U.S. policymakers to urge their Israeli counterparts to make concessions to defendants in exchange for their exerting their influence to halt, or attenuate, the attacks. For example, they quote a PA/PLO representative explaining on U.S. national television in 2002 that-in order for Palestinian suicide bombings to abate-the U.S. Secretary of State should prevail on Israel's prime minister to reduce Israeli troop levels and settler presence in contested areas, for, "if the occupation continues ... no one can stop the Palestinians." Id . at 43; see also Reply Br. 22 (same).
The basic theme here appears reasonable and seems to possess historical support. See, e.g., Klieman Br. 35 n.7; cf.
Peterson v. Islamic Republic of Iran
,
This circuit's previous decision in
Livnat
appears controlling. The case arose out of a 2011 terrorist attack on Jewish worshipers at Joseph's Tomb, a holy site in the West Bank.
Livnat
,
Livnat
's logic governs here. Even if some terrorist acts carried out in Israel or the West Bank were used by defendants to influence U.S. policy, nothing in the record indicates that
this
attack fills that bill. Plaintiffs would distinguish
Livnat
by noting that whereas the attacks there were against Jews and Israelis-the present allegations center on attacks on "areas and targets known to be frequented by U.S. citizens." Klieman Br. 35. But the distinction doesn't help plaintiffs on the facts presented. After all, they have alleged no facts indicating that the attack on an Israeli bus in the West Bank was directed at locales with a strong presence of U.S. nationals-either in the form of high-level planning or the individual attackers' motives. To the extent the attackers had-unbeknownst to them-chosen as their target a bus traveling through such a locale, the resulting "random, fortuitous, or attenuated contacts" with the forum are insufficient under
Walden
. A court's "exercise of jurisdiction over an out-of-state intentional tortfeasor must be based on
intentional
conduct by the defendant that creates the necessary contacts with the forum."
Walden
,
In some circumstances allegations of a defendant's general policy might adequately support an inference that the defendant aided and abetted a particular attack in furtherance of that policy. If two countries are engaged in armed conflict, we might be confident in explaining one country's execution of a bombing raid against the other's
territory as part of its general policy of inflicting damage on its adversary. But the case here plainly differs. Apart from any U.S. nexus there is a wholly plausible alternative explanation for defendants' aiding and abetting the attack-dynamics altogether internal to the Israeli-Palestinian conflict. Cf.
Ashcroft v. Iqbal
,
Plaintiffs might fill the resulting gap with allegations that PA/PLO officials invoked this attack in public or private statements in the United States
after
it took place, or perhaps that they took steps in the U.S. to aid and abet this particular attack
before
it occurred with the goal of advancing political objectives in the United States. But they offer nothing resembling such claims. As to the latter tack, plaintiffs "have not alleged [or] provided any prima facie showing ... that either the PA or the PLO engages in fundraising in the United States," let alone fundraising whose proceeds might have facilitated the 2002 attack.
Estate of Klieman
,
Nor does
Calder
's "effects test" help plaintiffs. See Klieman Br. 38-40. That analysis permits courts, in some instances, to assert jurisdiction over defendants whose conduct outside the forum causes certain "effects" within it. In
Calder
itself the Supreme Court approved a California state court's jurisdiction over two Florida residents-an editor and reporter of the National Enquirer, a Florida corporation. Defendants penned and published a libelous article about a California resident distributed widely in that state. See
Calder
,
Unlike the tort in
Calder
, which had "occurred
in
" the forum,
Walden
, 571 U.S. at 288,
Finally, plaintiffs' invocation of our decision in
Mwani v. bin Laden
is unpersuasive. There defendants' contacts with the United States were manifest in the very act that had precipitated the suit-a "devastating truck bomb" outside the U.S. Embassy in Nairobi, Kenya, in 1998, which "killed more than 200 people, including 12 Americans."
Mwani
,
But whereas the
Mwani
defendants, in attacking a U.S. government outpost, indisputably aimed to kill Americans (at least in part), here we have no basis for inferring that the terrorists who attacked an Israeli bus were instructed, or endeavored, to injure American nationals. And absent intentional targeting, the fact that an American died in a terrorist incident abroad would amount only to a "random, fortuitous, or attenuated" contact "ma[de] by interacting with ... persons affiliated with the" United States.
Walden
, 571 U.S. at 286,
We note that other circuits have taken a more stringent view of the necessary relation between the tort and in-forum activities than is manifest in
Livnat
and this decision. Thus the court in
Waite v. All Acquisition Corp.
,
We conclude that plaintiffs' prima facie case for specific jurisdiction does not meet the Constitution's requirements. Accordingly, we affirm the district court's determination on this score.
* * *
The district court also turned down plaintiffs' request for discovery in support of their theory of specific jurisdiction.
We review the district court's discovery rulings for abuse of discretion. "[A] district court has broad discretion in its resolution of discovery problems that arise in cases pending before it."
Naartex Consulting Corp. v. Watt
,
In opposing defendants' 2014 motion for reconsideration, plaintiffs sought discovery intended to disclose facts under two headings, both focused on aspects of defendants' U.S.-centered activities:
1. The extent of Defendants' activities within the United States and this jurisdiction to attempt to influence the foreign policy and public opinion in the United States to pressure Israel to change its public policies vis-à-vis the PA, including, but not limited to, information on the consultants, lobbyists and other professionals ret[ ]ained for this purpose.
2. The financial investment of the Defendants' commercial contracts with US companies which allow the Defendants to raise revenue in the United States to support the operating budgets of the Defendants, which funded the joint public relations and terrorism campaign. As demonstrated above, funds from the Defendants are then used to support terrorism, including the very terrorists who murdered Esther Klieman.
Pls.' Supp. Br. in Opp'n to Defs.' Mot. for Reconsideration 10 (Jul. 11, 2014), ECF No. 256, J.A. 94. The district court understandably saw the requested discovery as "limited to seeking information about defendants' public advocacy and fundraising activities in the United States."
Estate of Klieman
,
In their appellate briefs plaintiffs express a new wish to seek discovery as to facts far beyond their original request, facts which might close the gap that we (and Livnat ) have identified: They ask for
jurisdictional discovery on whether the PA and PLO directed terrorists to attack Americans, such as in this case, or launch their attacks against areas and targets frequented by Americans. Discovery into the proximity of PA/PLO-attributed attacks to concentrations of U.S. citizens, such as well-known tourist areas frequented by U.S. citizens or areas where U.S. citizens lived, would be one fruitful area of discovery.
Klieman Br. 33; see also Reply Br. 15. But even if such discovery was aimed closely enough at the missing link in plaintiffs' allegations, they failed to make the request to the district court, and "issues not raised before judgment in the district court are usually considered to have been [forfeited] on appeal."
Murthy v. Vilsack
,
* * *
Having addressed the case as initially briefed, we now turn to the ATCA, enacted during the pendency of this appeal. Pursuant to ATCA § 4, certain conduct after January 31, 2019, is deemed to qualify as consent to the jurisdiction of U.S. courts over terrorism cases.
The parties spar over the factual predicates for the application of ATCA § 4, as well as its constitutionality. We conclude that plaintiffs have not made an adequate showing that any of § 4's factual predicates has been triggered between February 1, 2019, and the time of the parties' latest round of briefing on the subject on March 13, 2019. Section 4, accordingly, does not affect our analysis of personal jurisdiction, and we need not reach the defendants' constitutional challenges.
Section 4 identifies five factual predicates grouped under two headings to trigger its "deemed to have consented" clause. See
(1) chapter 4 of part II,22 U.S.C. §§ 2346 et seq . ;
(2) section 481,22 U.S.C. § 2291 ; or
(3) chapter 9 of part II, 22 U.S.C. §§ 2349bb et seq .
The second heading, § (e)(1)(B), refers to a defendant "benefiting from a waiver or suspension of section 1003" of the ATA,
(4) "continu[ing] to maintain"- or
(5) "establish[ing] or procur[ing]"-
"any office, headquarters, premises, or other facilities or establishments within the jurisdiction of the United States."
As we noted earlier, once defendants raise personal jurisdiction as a defense, "[t]he plaintiffs have the burden of establishing the court's personal jurisdiction over" defendants.
FC Inv. Grp. LC
,
The government filed an amicus brief at the invitation of the court and agrees with defendants that § 4's factual predicates have not been satisfied. "[A]s of February 1, 2019 and since that date, defendants have not accepted any of the foreign assistance provided under the authorities enumerated in Section 4, and they do not currently 'benefit[ ]' from a waiver of section 1003 of the Anti-Terrorism Act of 1987, including to maintain an office in the United States pursuant to such a waiver." United States' Response to Feb. 6, 2019, Order 7 (Feb. 15, 2019) ("U.S. Response"), Dkt. No. 1773566.
Plaintiffs demur as to both subsections (A) and (B) of § (e)(1). We ultimately find, in keeping with the view of the United States, that plaintiffs have failed to offer plausible allegations that any of the factual predicates of ATCA § 4 has been met or to offer credible grounds to support their requested remand for discovery.
Foreign assistance and § 4(e)(1)(A) . The PA/PLO offered its December 26, 2018, letter to the State Department as conclusively rejecting aid covered by ATCA. Plaintiffs say that the letter "merely expresses a 'wish' to no longer receive" relevant forms of assistance. Klieman Supp. Br. 7 (Mar. 13, 2019), Dkt. No. 1777379. Hardly. The letter is quite emphatic: "The Government of Palestine unambiguously makes the choice not to accept such assistance." U.S. Response, Exhibit 1, Letter at 2. And the State Department and Department of Justice readily discerned its meaning. See U.S. Response 7.
Plaintiffs refer to certain "debt relief grant agreements with the PA" dating to 2015 and 2016, Klieman Supp. Br. 7-8, which were indeed provided under the Economic Support Fund covered by § 4(e)(1)(A)(i), see Foreign Assistance: U.S. Assistance for the West Bank and Gaza, Fiscal Years 2015 and 2016 , Gov't Accountability Office (Aug. 2018), https://www.gao.gov/assets/700/693823.pdf. But plaintiffs (1) fail to allege that any such forms of debt relief have persisted after January 31, 2019; and (2) do not grapple with the PA/PLO's renunciation of all relevant funding sources. Because we lack credible allegations that debt relief grants are currently being provided to PA/PLO, its instrumentalities, or creditors as of February 1, 2019-or that any of these "accept" such relief-plaintiffs' mere allusions to past examples and hypothesizing their continuation or renewal is not enough to warrant a remand.
The same goes for plaintiffs' references to funding for non-governmental organizations. See Klieman Supp. Br. 8. Plaintiffs rely on a Congressional Research Service report from 2011, which is unconvincing as to February 2019. Second, a gap remains in plaintiffs' analysis. Section 4(e)(1)(A) requires that defendants "accept" the relevant aid, yet plaintiffs allude only to payments to non-governmental organizations. Although such assistance might constitute a "form of assistance, however provided" to PA/PLO , plaintiffs offer nothing to establish that link.
Finally, nothing in the papers before us suggests that if granted an opportunity for discovery on remand plaintiffs would be able, in spite of the government's denial, to unearth sources of funding that continue to flow to the PA/PLO post-January 31, 2019, and come within § 4.
Benefiting from a waiver or suspension and maintaining or establishing an office, headquarters, etc.; § 4(e)(1)(B). Subsection (B) sets out two necessary but individually insufficient conditions for deeming a defendant to have consented to personal jurisdiction. (1) The defendant must maintain or establish, etc., "any office, headquarters, premises, or other facilities or establishments within the jurisdiction of the United States." (2) The defendant must be "benefiting from a waiver or suspension of section 1003."
Because the second requirement is dispositive against the plaintiffs we address the first requirement only enough to give an idea of the context within which the "waiver" is to be examined.
(1)
Activities allegedly triggering implied consent if defendant is "benefiting from a waiver or suspension of section 1003."
Plaintiffs' strongest argument centers on activities carried out by defendants under the auspices of the U.N. Permanent Observer Mission in New York. They do not dispute the Second Circuit's holding that the ATA-and, accordingly, § 1003-do not apply to defendants' U.N. Mission as such. See
Klinghoffer v. S.N.C, Achille Lauro Ed Altri-Gestione Motonave Achille Lauro in Amministrazione Straordinaria
,
Klinghoffer
reasons that "only those activities not conducted in furtherance of the PLO's observer status may properly be considered as a basis of jurisdiction,"
Even if we were to assume arguendo that the line drawn by the Second Circuit in Klinghoffer is correct and that the activities of the U.N. Mission in fact ranged beyond that line, plaintiffs have not (as discussed below) shown that defendants have been "benefiting from a waiver or suspension," as required for an inference of consent to suit triggered by ATCA § 4(e)(1)(B).
(2) "[B]enefiting from a waiver or suspension." Plaintiffs do not and cannot claim an express waiver or suspension. The PLO shuttered its D.C. office as of October 10, 2018, after the State Department declined to extend its § 1003 waiver. See U.S. Response 5-6; see also id . Exhibits 3-5. And the New York U.N. Mission operates without a waiver precisely because it isn't subject to the ATA. As the government has stated, "[t]here is no waiver of section 1003 currently in effect." Id . at 6.
In fact it appears correct to interpret the phrase "waiver or suspension" in (B) as referring solely to an express waiver under § 1003(3), as the government assumes.
For legal authority to issue periodic waivers to the PLO, the State Department has relied on annual State Department appropriations bills. See U.S. Response, Exhibits 3-4. For example, the 2017 letter in Exhibit 3 invokes § 7041(j)(2)(B)(i) of the Department of State, Foreign Operations, and Related Programs Appropriations Act, 2016, Pub. L. No. 114-113,
The President may waive the provisions of section 1003 of the Foreign Relations Authorization Act, Fiscal Years 1988 and 1989 ( Public Law 100-204 ) if the President determines and certifies in writing to the Speaker of the House of Representatives, the President pro tempore of the Senate, and the appropriate congressional committees that the Palestinians have not, after the date of enactment of this Act [either (1) taken certain steps at the U.N. or (2) taken certain actions vis-à-vis the International Criminal Court] (emphasis added).
The natural reading then, of "waiver or suspension" in § (e)(1)(B), is the sort of formal exercise of power plainly contemplated in this statute setting forth the waiver procedure.
Plaintiffs point to nothing that could either qualify as or substitute for the formal waiver or suspension evidently required. They point instead, see Klieman Supp. Br. 3, to: (1) an agency's "constructive" waiver of a deadline by accepting payments after that deadline,
Morris Commc'ns, Inc. v. FCC
,
Plaintiffs would equate government "failure to prosecute" allegedly excessive propaganda activities with provision of a waiver or suspension. Klieman Supp. Br. 5. But the statute permits no such equation. ATCA § 4 is triggered by a waiver of § 1003-not its violation . Thus, the predicate for making defendants' U.N. activities legally material under ATCA § 4 has not been met.
* * *
We affirm the decision of the district court in full.
So ordered .
Citations to ECF Numbers are to the district court docket in
Estate of Klieman v. Palestinian Authority
, No. 1:04-cv-01173-PLF,
Reference
- Full Case Name
- ESTATE OF Esther KLIEMAN, BY AND THROUGH Its Administrator, Aaron KESNER, Et Al., Appellants v. PALESTINIAN AUTHORITY, Also Known as Palestinian Interim Self-Government Authority and Palestinian Liberation Organization, Also Known as PLO, Appellees
- Cited By
- 10 cases
- Status
- Published