The Niqabi Paralegal

When terrorism occurs, who besides the perpetrators can be sanctioned for it? What kind of activity can be considered "material support" of terrorism? Much of anti-terrorism law seeks to provide answers for these questions. Related to this is the question of what assets can be attached as part of a judgment against a person or organization found to support terrorism.

Although the question of assets seems abstruse, it can be very significant to organizations, such as Muslim charities, that are caught up in terrorism investigations. A recent case involving Iranian banks may provide some guidance.

The New York Law Journal reports on Bank of New York v. Weinstein, Misc. 02-237. Ira Weinstein was killed in 1996 in a terrorist attack by Hamas. His wife filed suit against the Islamic Republic of Iran and in 2002 won $33.2 million in compensatory damages and $150 million in punitive damages, Weinstein v. Islamic Republic of Iran, 184 F.Supp.2d 13. She is attempting to attach Iran's assets under the Terrorism Risk Insurance Act (TRIA).

The Bank of New York holds $229,000 in accounts from three Iranian banks whose stock is held by the Iranian government. The bank filed a petition asking a federal court to determine whether Weinstein's widow has a right to the $229,000.

The problem was that the money had been frozen not in relation to terrorism but because of sanctions imposed by President Carter on Iran in 1979 due to the hostage crisis. The plaintiffs argued that because the assets had been blocked under the International Emergency Economic Powers Act (IEEPA), they were fair game. However, the court held that TRIA's clear statuatory text precluded such a broad interpretation. The assets would have had to be frozen or seized under TRIA not just under the broader authority of IEEPA. They were not, and therefore the plaintiffs cannot seize them.

At a time when the government and the courts seem to be favoring broader and broader interpretations of who is a terrorist and what is material support of terrorism, the decision in Bank of New York v. Weinstein rejecting a broad interpretation of terrorist assets, is a small step in the right direction.

© 2004 Solidarity USA