Bank Markazi v. Peterson
Bank Markazi v. Peterson
Opinion
A provision of the Iran Threat Reduction and Syria Human Rights Act of 2012,
Section 8772, we hold, does not transgress constraints placed on Congress and the President by the Constitution. The statute, we point out, is not fairly portrayed as a "one-case-only regime." Brief for Petitioner 27. Rather, it covers a category of postjudgment execution claims filed by numerous plaintiffs who, in multiple civil actions, obtained evidence-based judgments against Iran together amounting to billions of dollars. Section 8772 subjects the designated assets to execution "to satisfy any judgment" against Iran for damages caused by specified acts of terrorism. § 8772(a)(1) (emphasis added). Congress, our decisions make clear, may amend the law and make the change applicable to pending cases, even when the amendment is outcome determinative.
Adding weight to our decision, Congress passed, and the President signed, § 8772 in furtherance of their stance on a matter of foreign policy. Action in that realm warrants respectful review by courts. The Executive has historically made case-specific sovereign-immunity determinations to which courts have deferred. And exercise by Congress and the President of control over claims against foreign governments, as well as foreign-government-owned property in the United States, is hardly a novelty. In accord with the courts below, we perceive in § 8772 no violation of separation-of-powers principles, and no threat to the independence of the Judiciary.
I
A
We set out here statutory provisions relevant to this case. American nationals may file suit against state sponsors of terrorism in the courts of the United States. See 28 U.S.C. § 1605A. Specifically, they may seek "money damages ... against a foreign state for personal injury or death that was caused by" acts of terrorism, including "torture, extrajudicial killing, aircraft sabotage, hostage taking, or the provision of material support" to terrorist activities. § 1605A(a)(1). This authorization-known as the "terrorism exception"-is among enumerated exceptions prescribed in the Foreign Sovereign Immunities Act of 1976 (FSIA) to the general rule of sovereign immunity. 1
Victims of state-sponsored terrorism, like others proceeding under an FSIA exception, may obtain a judgment against a foreign state on "establish[ing] [their] claim[s] ... by evidence satisfactory to the court." § 1608(e). After gaining a judgment, however, plaintiffs proceeding under the terrorism exception "have often faced practical and legal difficulties" at the *1318 enforcement stage. Brief for United States as Amicus Curiae 2. Subject to stated exceptions, the FSIA shields foreign-state property from execution. § 1609. When the terrorism exception was adopted, only foreign-state property located in the United States and "used for a commercial activity" was available for the satisfaction of judgments. § 1610(a)(7), (b)(3). Further limiting judgment-enforcement prospects, the FSIA shields from execution property "of a foreign central bank or monetary authority held for its own account." § 1611(b)(1).
To lessen these enforcement difficulties, Congress enacted the Terrorism Risk Insurance Act of 2002 (TRIA), which authorizes execution of judgments obtained under the FSIA's terrorism exception against "the blocked assets of [a] terrorist party (including the blocked assets of any agency or instrumentality of that terrorist party)." § 201(a),
Invoking his authority under the IEEPA, the President, in February 2012, issued an Executive Order blocking "[a]ll property and interests in property of any Iranian financial institution, including the Central Bank of Iran, that are in the United States." Exec. Order No. 13599, 3 CFR 215 (2012 Comp.). The availability of these assets for execution, however, was contested. 3
To place beyond dispute the availability of some of the Executive Order No. 13599 -blocked assets for satisfaction of judgments rendered in terrorism cases, Congress passed the statute at issue here: § 502 of the Iran Threat Reduction and Syria Human Rights Act of 2012,
Before allowing execution against an asset described in § 8772(b), a court must determine that the asset is:
"(A) held in the United States for a foreign securities intermediary doing business in the United States;
"(B) a blocked asset (whether or not subsequently unblocked) ...; and
"(C) equal in value to a financial asset of Iran, including an asset of the central bank or monetary authority of the Government of Iran...." § 8772(a)(1).
In addition, the court in which execution is sought must determine "whether Iran holds equitable title to, or the beneficial interest in, the assets ... and that no other person possesses a constitutionally protected interest in the assets ... under the Fifth Amendment to the Constitution of the United States." § 8772(a)(2).
B
Respondents are victims of Iran-sponsored acts of terrorism, their estate representatives, and surviving family members. See App. to Pet. for Cert. 52a-53a; Brief for Respondents 6. Numbering more than 1,000, respondents rank within 16 discrete groups, each of which brought a lawsuit against Iran pursuant to the FSIA's terrorism exception. App. to Brief for Respondents 1a-2a. All of the suits were filed in United States District Court for the District of Columbia.
5
Upon finding a clear evidentiary basis for Iran's liability to each suitor, the court entered judgments by default. See,
e.g.,
Peterson v. Islamic Republic of Iran,
*1320
App. to Pet. for Cert. 21a
.
6
"Together, [respondents] have obtained billions of dollars in judgments against Iran, the vast majority of which remain unpaid."
To enforce their judgments, the 16 groups of respondents first registered them in the United States District Court for the Southern District of New York. See
Although the enforcement proceeding was initiated prior to the issuance of Executive Order No. 13599 and the enactment of § 8772, the judgment holders updated their motions in 2012 to include execution claims under § 8772. Plaintiffs' Supplemental Memorandum of Law in Support of Their Motion for Partial Summary Judgment in No. 10-CIV-4518 (SDNY). 10
*1321 Making the findings necessary under § 8772, the District Court ordered the requested turnover. App. to Pet. for Cert. 109a. 11
In reaching its decision, the court reviewed the financial history of the assets and other record evidence showing that Bank Markazi owned the assets. See
Resisting turnover of the bond assets, Bank Markazi and Clearstream, as the District Court observed, "filled the proverbial kitchen sink with arguments."
*1322 "[I]n passing § 8772," Bank Markazi argued, "Congress effectively dictated specific factual findings in connection with a specific litigation-invading the province of the courts." App. to Pet. for Cert. 114a. The District Court disagreed. The ownership determinations § 8772 required, see supra, at 1320 - 1321, the court said, "[were] not mere fig leaves," for "it [was] quite possible that the [c]ourt could have found that defendants raised a triable issue as to whether the [b]locked [a]ssets were owned by Iran, or that Clearstream and/or UBAE ha[d] some form of beneficial or equitable interest." App. to Pet. for Cert. 115a. Observing from the voluminous filings that "[t]here [was] ... plenty ... to [litigate]," the court described § 8772 as a measure that "merely chang[es] the law applicable to pending cases; it does not usurp the adjudicative function assigned to federal courts." Ibid. (internal quotation marks omitted). Further, the court reminded, "Iran's liability and its required payment of damages was ... established years prior to the [enactment of § 8772 ]"; "[a]t issue [here] is merely execution [of judgments] on assets present in this district." Id., at 116a. 14
The Court of Appeals for the Second Circuit unanimously affirmed.
Peterson v. Islamic Republic of Iran,
To consider the separation-of-powers question Bank Markazi presents, we granted certiorari, 576 U.S. ----,
II
Article III of the Constitution establishes an independent Judiciary, a Third Branch of Government with the "province and duty ... to say what the law is" in particular cases and controversies.
Marbury v. Madison,
A
Citing
United States v. Klein,
Klein
involved Civil War legislation providing that persons whose property had been seized and sold in wartime could recover the proceeds of the sale in the Court of Claims upon proof that they had "never given any aid or comfort to the present rebellion." Ch. 120, § 3,
During the pendency of an appeal to this Court from the Court of Claims judgment in
Klein,
Congress enacted a statute providing that no pardon should be admissible as proof of loyalty. Moreover, acceptance of a pardon without disclaiming participation in the rebellion would serve as conclusive evidence of disloyalty. The statute directed the Court of Claims and the Supreme Court to dismiss for want of jurisdiction any claim based on a pardon.
Bank Markazi, as earlier observed,
supra,
at 1323, argues that § 8772 conflicts with
Klein
. The Bank points to a statement in the
Klein
opinion questioning whether "the legislature may prescribe rules of decision to the Judicial Department ... in cases pending before it." 13 Wall., at 146. One cannot take this language from
Klein
"at face value," however, "for congressional power to make valid statutes retroactively applicable to pending cases has often been recognized." Hart and Wechsler 324. See,
e.g.,
United States v. Schooner Peggy,
"The Ex Post Facto Clause flatly prohibits retroactive application of penal legislation. Article I, § 10, cl. 1, prohibits States from passing ... laws 'impairing the Obligation of Contracts.' The Fifth Amendment's Takings Clause prevents the Legislature (and other government actors) from depriving private persons of vested property rights except for a 'public use' and upon payment of 'just compensation.' The prohibitions on *1325 'Bills of Attainder' in Art. I, §§ 9-10, prohibit legislatures from singling out disfavored persons and meting out summary punishment for past conduct. The Due Process Clause also protects the interests in fair notice and repose that may be compromised by retroactive legislation; a justification sufficient to validate a statute's prospective application under the Clause 'may not suffice' to warrant its retroactive application."Id., at 266-267 ,114 S.Ct. 1483 (citation and footnote omitted).
"Absent a violation of one of those specific provisions," when a new law makes clear that it is retroactive, the arguable "unfairness of retroactive civil legislation is not a sufficient reason for a court to fail to give [that law] its intended scope."
Bank Markazi argues most strenuously that § 8772 did not simply amend pre-existing law. Because the judicial findings contemplated by § 8772 were "foregone conclusions," the Bank urges, the statute "effectively" directed certain factfindings and specified the outcome under the amended law. See Brief for Petitioner 42, 47. See also supra , at 1322 - 1323. Recall that the District Court, closely monitoring the case, disagreed. Supra, at 1321 - 1322; App. to Pet. for Cert. 115a ("[The] determinations [required by § 8772 ] [were] not mere fig leaves," for "it [was] quite possible that the [c]ourt could have found that defendants raised a triable issue as to whether the [b]locked [a]ssets were owned by Iran, or that Clearstream and/or UBAE ha [d] some form of beneficial or equitable interest."). 20
In any event, a statute does not impinge on judicial power when it directs courts to apply a new legal standard to undisputed facts. "When a plaintiff brings suit to enforce a legal obligation it is not any less a case or controversy upon which a court possessing the federal judicial power may rightly give judgment, because the plaintiff's claim is uncontested or incontestable."
Pope v. United States,
Resisting this conclusion, THE CHIEF JUSTICE compares § 8772 to a hypothetical "law directing judgment for Smith if the court finds that Jones was duly served with notice of the proceedings."
Post,
at 1335 - 1336.
21
Of course, the hypothesized law would be invalid-as would a law directing judgment for Smith, for instance, if the court finds that the sun rises in the east. For one thing, a law so cast may well be irrational and, therefore, unconstitutional for reasons distinct from the separation-of-powers issues considered here. See,
e.g.,
infra,
at 1327, n. 27. For another, the law imagined by the dissent does what
Robertson
says Congress cannot do: Like a statute that directs, in "Smith v. Jones," "Smith wins,"
supra,
at 1323, n. 17, it "compel[s] ... findings or results under old law," for it fails to supply any new legal standard effectuating the lawmakers' reasonable policy judgment,
B
Section 8772 remains "unprecedented," Bank Markazi charges, because it "prescribes a rule for a single pending case-identified by caption and docket number." Brief for Petitioner 17.
23
The amended law in
Robertson,
however, also applied to cases identified by caption and docket number,
The Bank's argument is further flawed, for it rests on the assumption that legislation must be generally applicable, that "there is something wrong with particularized legislative action."
Plaut,
"While legislatures usually act through laws of general applicability, that is by no means their only legitimate mode of action. Private bills in Congress are still common, and were even more so in the days before establishment of the Claims Court. Even laws that impose a duty or liability upon a single individual or firm are not on that account invalid-or else we would not have the extensive jurisprudence that we do concerning the Bill of Attainder Clause, including cases which say that [the Clause] requires not merely 'singling out' but also punishment, see, e.g., United States v. Lovett,328 U.S. 303 , 315-318 [66 S.Ct. 1073 ,90 L.Ed. 1252 ] (1946), [or] a case [holding] that Congress may legislate 'a legitimate class of one,' Nixon v. Administrator of General Services,433 U.S. 425 , 472 [97 S.Ct. 2777 ,53 L.Ed.2d 867 ] (1977)." Ibid . 27
*1328
This Court and lower courts have upheld as a valid exercise of Congress' legislative power diverse laws that governed one or a very small number of specific subjects.
E.g.,
Regional Rail Reorganization Act Cases,
C
We stress, finally, that § 8772 is an exercise of congressional authority regarding foreign affairs, a domain in which the controlling role of the political branches is both necessary and proper. See,
e.g.,
Zivotofsky v. Kerry,
576 U.S. ----, ----,
Particularly pertinent, the Executive, prior to the enactment of the FSIA, regularly made case-specific determinations whether sovereign immunity should be recognized, and courts accepted those determinations as binding. See
Republic of Austria v. Altmann,
*1329
This practice, too, was never perceived as an encroachment on the federal courts' jurisdiction. See
Dames & Moore,
Enacting the FSIA in 1976, Congress transferred from the Executive to the courts the principal responsibility for determining a foreign state's amenability to suit. See
Verlinden B.V. v. Central Bank of Nigeria,
* * *
For the reasons stated, we are satisfied that § 8772 -a statute designed to aid in the enforcement of federal-court judgments-does not offend "separation of powers principles ... protecting the role of the independent Judiciary within the constitutional design."
Miller v. French,
Affirmed.
Chief Justice ROBERTS, with whom Justice SOTOMAYOR joins, dissenting.
Imagine your neighbor sues you, claiming that your fence is on his property. His evidence is a letter from the previous owner of your home, accepting your neighbor's version of the facts. Your defense is an official county map, which under state law establishes the boundaries of your land. The map shows the fence on your side of the property line. You also argue that your neighbor's claim is six months outside the statute of limitations.
Now imagine that while the lawsuit is pending, your neighbor persuades the legislature to enact a new statute. The new statute provides that for your case, and your case alone, a letter from one neighbor to another is conclusive of property boundaries, and the statute of limitations is one year longer. Your neighbor wins. Who would you say decided your case: the legislature, which targeted your specific case and eliminated your specific defenses so as to ensure your neighbor's victory, or the court, which presided over the fait accompli ?
That question lies at the root of the case the Court confronts today. Article III of the Constitution commits the power to decide cases to the Judiciary alone. See
Stern v. Marshall,
*1330 Contrary to the majority, I would hold that § 8772 violates the separation of powers. No less than if it had passed a law saying "respondents win," Congress has decided this case by enacting a bespoke statute tailored to this case that resolves the parties' specific legal disputes to guarantee respondents victory.
I
A
Article III, § 1 of the Constitution vests the "judicial Power of the United States" in the Federal Judiciary. That provision, this Court has observed, "safeguards the role of the Judicial Branch in our tripartite system."
Commodity Futures Trading Comm'n v. Schor,
The question we confront today is whether § 8772 violates Article III by invading the judicial power.
B
"The Framers of our Constitution lived among the ruins of a system of intermingled legislative and judicial powers."
Plaut v. Spendthrift Farm, Inc.,
Throughout the 17th and 18th centuries, colonial legislatures performed what are now recognized as core judicial roles. They "functioned as courts of equity of last resort, hearing original actions or providing appellate review of judicial judgments."
The judicial power exercised by colonial legislatures was often expressly vested in them by the colonial charter or statute. In the Colonies of Massachusetts, Connecticut, and Rhode Island, for example, the assemblies officially served as the highest court of appeals. See 1 The Public Records of the Colony of Connecticut 25 (Trumbull ed. 1850); M. Clarke, Parliamentary Privilege in the American Colonies 31-33 (1943). Likewise, for more than a half century, the colonial assembly *1331 of Virginia could review and set aside court judgments. Id., at 37-38. And in New Hampshire, where British authorities directed judicial appeals to the governor and his council, those officials often referred such matters to the assembly for decision. Id., at 33. Colonial assemblies thus sat atop the judicial pyramid, with the final word over when and how private disputes would be resolved.
Legislative involvement in judicial matters intensified during the American Revolution, fueled by the "vigorous, indeed often radical, populism of the revolutionary legislatures and assemblies."
Plaut,
The Revolution-era "crescendo of legislative interference with private judgments of the courts," however, soon prompted a "sense of a sharp necessity to separate the legislative from the judicial power."
Plaut,
Vermont's Council of Censors sounded similar warnings. Its 1786 report denounced the legislature's "assumption of the judicial power," which the legislature had exercised by staying and vacating judgments, suspending lawsuits, resolving property disputes, and "legislating for individuals, and for particular cases." Vermont State Papers 1779-1786, pp. 537-542 (W. Slade ed. 1823). The Censors concluded that "[t]he legislative body is, in truth, by no means competent to the determination of causes between party and party," having exercised judicial power "without being shackled with rules," guided only by "crude notions of equity." Id., at 537, 540.
The States' experiences ultimately shaped the Federal Constitution, figuring prominently in the Framers' decision to *1332 devise a system for securing liberty through the division of power:
"Before and during the debates on ratification, Madison, Jefferson, and Hamilton each wrote of the factional disorders and disarray that the system of legislative equity had produced in the years before the framing; and each thought that the separation of the legislative from the judicial power in the new Constitution would cure them." Plaut,514 U.S., at 221 ,115 S.Ct. 1447 .
As Professor Manning has concluded, "Article III, in large measure, reflects a reaction against the practice" of legislative interference with state courts. Manning, Response, Deriving Rules of Statutory Interpretation from the Constitution,
Experience had confirmed Montesquieu's theory. The Framers saw that if the "power of judging ... were joined to legislative power, the power over the life and liberty of the citizens would be arbitrary." Montesquieu 157. They accordingly resolved to take the unprecedented step of establishing a "truly distinct" judiciary. The Federalist No. 78, at 466 (A. Hamilton). To help ensure the "complete independence of the courts of justice," ibid., they provided life tenure for judges and protection against diminution of their compensation. But such safeguards against indirect interference would have been meaningless if Congress could simply exercise the judicial power directly. The central pillar of judicial independence was Article III itself, which vested "[t]he judicial Power of the United States" in "one supreme Court" and such "inferior Courts" as might be established. The judicial power was to be the Judiciary's alone.
II
A
Mindful of this history, our decisions have recognized three kinds of "unconstitutional restriction[s] upon the exercise of judicial power."
Plaut,
This case is about the third type of unconstitutional interference with the judicial function, whereby Congress assumes the role of judge and decides a particular pending case in the first instance. Section 8772 does precisely that, changing the law-for these proceedings alone-simply to guarantee that respondents win. The law serves no other purpose-a point, indeed, that is hardly in dispute. As the majority acknowledges, the statute " 'sweeps away ... any ... federal or state law impediments that might otherwise exist' " to bar respondents from obtaining Bank Markazi's assets.
Ante,
at 1321 (quoting App. to Pet. for Cert. 73a). In the District Court, Bank Markazi had invoked sovereign immunity under the Foreign Sovereign Immunities Act of 1976,
Section 8772 authorized attachment, moreover, only for the
"financial assets that are identified in and the subject of proceedings in the United States District Court for the Southern District of New York in Peterson et al. v. Islamic Republic of Iran et al., Case No. 10 Civ. 4518(BSJ)(GWG), that were restrained by restraining notices and levies secured by the plaintiffs in those proceedings...." § 8772(b).
And lest there be any doubt that Congress's sole concern was deciding this particular case, rather than establishing any generally applicable rules, § 8772 provided that nothing in the statute "shall be construed ... to affect the availability, or lack thereof, of a right to satisfy a judgment in any other action against a terrorist party in any proceedings other than" these. § 8772(c). 1
B
There has never been anything like § 8772 before. Neither the majority nor respondents have identified another statute that changed the law for a pending case in an outcome-determinative way and explicitly limited its effect to particular judicial proceedings. That fact alone is "[p]erhaps the most telling indication of the severe constitutional problem" with the law.
Free Enterprise Fund v. Public Company Accounting Oversight Bd.,
Section 8772 violates the bedrock rule of Article III that the judicial power is vested in the Judicial Branch alone. We first enforced that rule against an Act of Congress during the Reconstruction era in
United States v. Klein,
Klein's suit was among those Congress wished to block. Klein represented the estate of one V.F. Wilson, a Confederate supporter whom Lincoln had pardoned. On behalf of the estate, Klein had obtained a sizable judgment in the Court of Claims for property seized by the Union. Klein, 13 Wall., at 132-134. The Government's appeal from that judgment was pending in the Supreme Court when the law targeting such suits took effect. The Government accordingly moved to dismiss the entire proceeding.
This Court, however, denied that motion and instead declared the law unconstitutional. It held that the law "passed the limit which separates the legislative from the judicial power." Id., at 147. The Court acknowledged that Congress may "make exceptions and prescribe regulations to the appellate power," but it refused to sustain the law as an exercise of that authority. Id., at 146. Instead, the Court held that the law violated the separation of powers by attempting to "decide" the case by "prescrib[ing] rules of decision to the Judicial Department of the government in cases pending before it." Id., at 145-146. "It is of vital importance," the Court stressed, that the legislative and judicial powers "be kept distinct." Id., at 147.
The majority characterizes
Klein
as a delphic, puzzling decision whose central holding-that Congress may not prescribe the result in pending cases-cannot be taken at face value.
2
It is true that
Klein
can be read too broadly, in a way that would swallow the rule that courts generally must apply a retroactively applicable statute to pending cases. See
United States v. Schooner Peggy,
*1335 Jones implicates profound issues of separation of powers, issues not adequately answered by a citation to Schooner Peggy . And just because Klein did not set forth clear rules defining the limits on Congress's authority to legislate with respect to a pending case does not mean-as the majority seems to think-that Article III itself imposes no such limits.
The same "record of history" that drove the Framers to adopt Article III to implement the separation of powers ought to compel us to give meaning to their design.
Plaut,
The Court says it would reject a law that says "Smith wins" because such a statute "would create no new substantive law." Ante, at 1323, n. 17. Of course it would: Prior to the passage of the hypothetical statute, the law did not provide that Smith wins. After the passage of the law, it does. Changing the law is simply how Congress acts. The question is whether its action constitutes an exercise of judicial power. Saying Congress "creates new law" in one case but not another simply expresses a conclusion on that issue; it does not supply a reason.
"Smith wins" is a new law, tailored to one case in the same way as § 8772 and having the same effect. All that both statutes "effectuat[e]," in substance, is lawmakers' "policy judgment" that one side in one case ought to prevail. Ante, at 1326. The cause for concern is that though the statutes are indistinguishable, it is plain that the majority recognizes no limit under the separation of powers beyond the prohibition on statutes as brazen as "Smith wins." Hamilton warned that the Judiciary must take "all possible care ... to defend itself against [the] attacks" of the other branches. The Federalist No. 78, at 466. In the Court's view, however, Article III is but a constitutional Maginot Line, easily circumvented by the simplest maneuver of taking away every defense against Smith's victory, without saying "Smith wins."
Take the majority's acceptance of the District Court's conclusion that § 8772 left "plenty" of factual determinations for the court "to adjudicate."
Ante,
at 1324 - 1325, and n. 20 (internal quotation marks omitted). All § 8772 actually required of the court was two factual determinations-that Bank Markazi has an equitable or beneficial interest in the assets, and that no other party does, § 8772(a)(2) -both of which were well established by the time Congress enacted § 8772. Not only had the assets at issue been frozen pursuant to an Executive Order blocking "property of the Government of Iran," Exec. Order No. 13599,
*1336
It is true that some of the precedents cited by the majority,
ante,
at 1325 - 1327, have allowed Congress to approach the boundary between legislative and judicial power. None, however, involved statutes comparable to § 8772. In
Robertson v. Seattle Audubon Soc.,
I readily concede, without embarrassment, that it can sometimes be difficult to draw the line between legislative and judicial power. That should come as no surprise; Chief Justice Marshall's admonition "that 'it is a
constitution
we are expounding' is especially relevant when the Court is required to give legal sanctions to an underlying principle of the Constitution-that of separation of powers."
Youngstown Sheet & Tube Co. v. Sawyer,
C
Finally, the majority suggests that § 8772 is analogous to the Executive's historical power to recognize foreign state sovereign immunity on a case-by-case basis. As discussed above, however, § 8772 does considerably more than withdraw the Bank's sovereign immunity.
Supra,
at 1319 - 1321. It strips the Bank of any protection that federal common law, international law, or New York State law might have offered against respondents' claims. That is without analogue or precedent. In any event, the practice of applying case-specific Executive submissions on sovereign immunity was not judicial acquiescence in an intrusion on the Judiciary's role. It was instead the result of substantive sovereign immunity law, developed and applied by the courts, which treated such a submission as a dispositive fact. See
Verlinden B.V. v. Central Bank of Nigeria,
The majority also compares § 8772 to the political branches' authority to "exercise[ ] control over claims against foreign states and the disposition of foreign-state property in the United States."
*1337
Ante,
at 1327 (citing
Dames & Moore v. Regan,
The majority suggests that
Dames & Moore
supports the validity of § 8772. But
Dames & Moore
was self-consciously "a restricted railroad ticket, good for this day and train only."
Smith v. Allwright,
There are, moreover, several important differences between
Dames & Moore
and this case. For starters, the executive action
Dames & Moore
upheld did not dictate how particular claims were to be resolved, but simply required such claims to be submitted to a different tribunal.
If anything, what
Dames & Moore
reveals is that the political branches have extensive powers of their own in this area and could have chosen to exercise them to give relief to the claimants in this case. Cf.
* * *
*1338
At issue here is a basic principle, not a technical rule. Section 8772 decides this case no less certainly than if Congress had directed entry of judgment for respondents. As a result, the potential of the decision today "to effect important change in the equilibrium of power" is "immediately evident."
Morrison v. Olson,
I respectfully dissent.
Justice THOMAS joins all but Part II-C of this opinion.
The syllabus constitutes no part of the opinion of the Court but has been prepared by the Reporter of Decisions for the convenience of the reader. See
United States v. Detroit Timber & Lumber Co.,
The FSIA "provides the sole basis for obtaining jurisdiction over a foreign state in the courts of this country" and renders a foreign government "presumptively immune from the jurisdiction of United States courts unless one of the Act's express exceptions to sovereign immunity applies."
OBB Personenverkehr AG v. Sachs,
577 U.S. ----, ----,
Again expanding the availability of assets for postjudgment execution, Congress, in 2008, amended the FSIA to make available for execution the property (whether or not blocked) of a foreign state sponsor of terrorism, or its agency or instrumentality, to satisfy a judgment against that state. See § 1083 of the National Defense Authorization Act for Fiscal Year 2008,
As a defense to execution, Bank Markazi contended that the blocked assets were not assets "of" Bank Markazi. See TRIA § 201(a). Referring to state property law, Bank Markazi asserted that the assets were "of" a financial intermediary which held them in the United States on Bank Markazi's behalf. See App. to Pet. for Cert. 96a-100a.
Title
The 16 judgments include:
Wultz v. Islamic Republic of Iran,
"At approximately 6:25 a.m. Beirut time, ... [a] truck crashed through a ... barrier and a wall of sandbags, and entered the barracks. When the truck reached the center of the barracks, the bomb in the truck detonated...."
Peterson,
Some of these 16 judgments awarded compensatory and punitive damages. See,
e.g.,
Wultz,
Federal Rule of Civil Procedure 69(a)(1) provides: "A money judgment is enforced by writ of execution.... The procedure on execution-and in proceedings supplementary to and in aid of judgment or execution-must accord with the procedure of the state where the court is located, but a federal statute governs to the extent it applies."
Some moved to intervene; others became part of the proceeding by way of an interpleader motion filed by Citibank. App. to Pet. for Cert. 15a, 52a-53a, n. 1; Third-Party Petition Alleging Claims in the Nature of Interpleader in No. 10-CIV-4518 (SDNY), pp. 12-14. One group of respondents intervened much later than the others, in 2013, after § 8772's enactment. See App. to Pet. for Cert. 18a-19a.
Before § 8772's enactment, respondents' execution claims relied on the TRIA. Even earlier, i.e., prior to Executive Order No. 13599, which blocked the assets and thereby opened the door to execution under the TRIA, respondents sought turnover pursuant to the FSIA's terrorism judgment execution provisions. See Second Amended Complaint in No. 10-CIV-4518 (SDNY), pp. 27, 35-36; supra, at 1317 - 1318, and n. 2.
In April 2012, the last of the bonds matured, leaving only "cash associated with the bonds" still restrained in the New York bank account. App. to Pet. for Cert. 61a.
Citibank is a "neutral stakeholder," seeking only "resolution of ownership of [the] funds." App. to Pet. for Cert. 54a (internal quotation marks omitted). UBAE did not contest turnover of the $1.75 billion in assets at issue here (though it disputed the District Court's personal jurisdiction in anticipation of other execution claims not now before us). See Memorandum of Law in Support of Banca UBAE, S.p.A.'s Opposition to the Plaintiffs' Motion for Partial Summary Judgment in No. 10-CIV-4518 (SDNY), pp. 1-2.
In addition, Bank Markazi advanced one argument not foreclosed by § 8772's text, and another that, at least in Bank Markazi's estimation, had not been rendered irrelevant by § 8772. First, Bank Markazi argued that the availability of the assets for execution was a nonjusticiable political question because execution threatened to interfere with European blocking regulations. App. to Pet. for Cert. 92a-94a. Second, the Bank urged that execution would violate U.S. treaty obligations to Iran. See Defendant Bank Markazi's Supplemental Memorandum of Law in Opposition to Plaintiffs' Motion for Partial Summary Judgment in No. 10-CIV-4518 (SDNY), pp. 2-3, 21-25. The District Court found these arguments unavailing. The matter was justiciable, the court concluded, because § 8772's enactment demonstrated that the political branches were not troubled about interference with European blocking regulations. App. to Pet. for Cert. 94a-96a. And treaty provisions interposed no bar to enforcement of § 8772 because, the court reiterated, § 8772 displaces "any" inconsistent provision of law, treaty obligations included . Id., at 101a-102a.
Bank Markazi and Clearstream unsuccessfully sought to defeat turnover on several other constitutional grounds: the Bill of Attainder, Ex post facto, Equal Protection, and Takings Clauses. See id., at 115a-119a. Those grounds are no longer pressed.
Clearstream and UBAE settled with respondents before the Second Circuit's decision.
Peterson v. Islamic Republic of Iran,
Respondents suggest that we decide this case on the ground that § 201(a) of the TRIA independently authorizes execution against the assets here involved, instead of reaching the constitutional question petitioner raises regarding § 8772. Brief for Respondents 53. The Court of Appeals, however, did not "resolve th[e] dispute under the TRIA,"
Consistent with this limitation, respondents rightly acknowledged at oral argument that Congress could not enact a statute directing that, in "Smith v. Jones," "Smith wins." Tr. of Oral Arg. 40. Such a statute would create no new substantive law; it would instead direct the court how pre-existing law applies to particular circumstances. See
infra
this page and 1323 - 1327. THE CHIEF JUSTICE challenges this distinction,
post,
at 1322 - 1323, but it is solidly grounded in our precedent. See
Robertson v. Seattle Audubon Soc.,
See also id ., at 323 (calling Klein a "delphic opinion"); Tyler, The Story of Klein : The Scope of Congress's Authority to Shape the Jurisdiction of the Federal Courts, in Federal Courts Stories 87 (V. Jackson & J. Resnik eds. 2010) (calling Klein "baffl[ing]") (Tyler).
Given the issue before the Court-Presidential pardons Congress sought to ify by withdrawing federal-court jurisdiction-commentators have rightly read
Klein
to have at least this contemporary significance: Congress "may not exercise [its authority, including its power to regulate federal jurisdiction,] in a way that requires a federal court to act unconstitutionally." Meltzer, Congress, Courts, and Constitutional Remedies,
The District Court understandably concluded that § 8772 left it "plenty ... to adjudicate." App. to Pet. for Cert. 115a. For one, the statute did not define its key terms, "beneficial interest" and "equitable title." To arrive at fitting definitions, the District Court consulted legal dictionaries and precedent. See
Recall, again, that respondents are judgment creditors who prevailed on the merits of their respective cases. Section 8772 serves to facilitate their ability to collect amounts due to them from assets of the judgment debtor.
The dissent also analogizes § 8772 to a law that makes "conclusive" one party's flimsy evidence of a boundary line in a pending property dispute, notwithstanding that the governing law ordinarily provides that an official map establishes the boundary. Post, at 1316. Section 8772, however, does not restrict the evidence on which a court may rely in making the required findings. A more fitting analogy for depicting § 8772's operation might be: In a pending property dispute, the parties contest whether an ambiguous statute makes a 1990 or 2000 county map the relevant document for establishing boundary lines. To clarify the matter, the legislature enacts a law specifying that the 2000 map supersedes the earlier map.
At oral argument, Bank Markazi clarified that its argument extended beyond a single pending case, encompassing as well "a limited category of cases." Tr. of Oral Arg. 5. See also id., at 57-58.
Section 8772's limitation to one consolidated proceeding operates unfairly, Bank Markazi suggests, because other judgment creditors "would be subject to a completely different rule" if they "sought to execute against the same assets" outside No. 10-CIV-4518. Brief for Petitioner 26 (citing § 8772(c) ("Nothing in this section shall be construed ... to affect ... any proceedings other than" No. 10-CIV-4518)). But nothing in § 8772 prevented additional judgment creditors from joining the consolidated proceeding after the statute's enactment. Indeed, one group of respondents did so. See supra, at 1320, n. 9.
District courts routinely consolidate multiple related matters for a single decision on common issues. See,
e.g.,
Securities Investor Protection Corp. v. Bernard L. Madoff Inv. Securities LLC,
Questioning this understanding of the proceedings below, THE CHIEF JUSTICE emphasizes that many of the judgment creditors were joined in the Peterson enforcement proceeding by interpleader. See post, at 1333, n. 1. That is true, supra, at 1320, n. 9, but irrelevant. As explained above, execution proceedings are continuations of merits proceedings, not new lawsuits. Thus, the fact that many creditors joined by interpleader motion did not transform execution claims in 16 separate suits into "a single case." Post, at 1333, n. 1.
Laws narrow in scope, including "class of one" legislation, may violate the Equal Protection Clause if arbitrary or inadequately justified.
Village of Willowbrook v. Olech,
THE CHIEF JUSTICE correctly notes that the Court in
Dames & Moore v. Regan,
The majority quarrels with the description of § 8772 as being directed to a single case, noting that the claimants had sought attachment of the assets in various prior proceedings. Ante, at 1326. Those proceedings, however, were not simply consolidated below, but rather were joined in the single interpleader action that was referenced by docket number in § 8772. See § 8772(b). See generally 7 C. Wright, A. Miller, & M. Kane, Federal Practice and Procedure § 1702 (3d ed. 2001) (explaining that interpleader is a "joinder device" that brings together multiple claimants to a piece of property in a "single" action to "protect [ ] the stakeholder from the vexation of multiple suits"). That is presumably why respondents did not dispute Bank Markazi's characterization of the proceedings as "a single pending case" when they opposed certiorari, Pet. for Cert. i, and why the majority offers no citation to refute Wright & Miller's characterization of an interpleader action as a "single proceeding," 7 Federal Practice and Procedure § 1704. In any event, nothing in the majority's opinion suggests that the result would be different under its analysis even if it concluded that only a single case were involved.
The majority instead seeks to recast
Klein
as being primarily about congressional impairment of the President's pardon power,
ante,
at 1323 - 1324, despite
Klein
's unmistakable indication that the impairment of the pardon power was an
alternative
ground for its holding, secondary to its Article III concerns. 13 Wall., at 147 ("The rule prescribed is
also
liable to just exception as impairing the effect of a pardon, and thus infringing the constitutional power of the Executive." (emphasis added)). The majority then suggests that
Klein
stands simply for the proposition that Congress may not require courts to act unconstitutionally.
Ante,
at 1323, and n. 19. That is without doubt a good rule, recognized by this Court since
Marbury v. Madison,
We have also upheld Congress's long practice of settling individual claims involving public rights, such as claims against the Government, through private bills. See generally
Pope v. United States,
Reference
- Full Case Name
- BANK MARKAZI, AKA Central Bank of Iran, Petitioner v. Deborah PETERSON, Et Al.
- Cited By
- 144 cases
- Status
- Published