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                                                                  Order Code  RS22094
                                                                Updated  June 23, 2005



 CRS Report for Congress

               .Received through the CRS Web




       Lawsuits Against State Supporters of
                  Terrorism: An Overview

                             Jennifer K. Elsea
                             Legislative Attorney
                          American   Law  Division

Summary


     A  1996 amendment  to the Foreign Sovereign Immunities Act (FSIA) enables
 American victims of international terrorist acts supported by certain States designated
 by the State Department as supporters of terrorism - Cuba, Iran, Libya, North Korea,
 Sudan, Syria, and until recently, Iraq - to bring suit in federal court to seek monetary
 damages.  Holders of judgments against these States, however, have encountered
 difficulties in their efforts to collect, despite congressional efforts to make blocked (or
 frozen) assets of such States available for attachment byjudgment creditors. A recent
 court decision invalidating plaintiffs' cause of action under the 1996 law raises
 uncertainties about the future of lawsuits against terrorist States. This report provides
 an overview of these issues, including a summary of a lawsuit against Iran by former
 hostages, Roeder v. Islamic Republic of Iran, and a lawsuit against Iraq by former
 prisoners of war (POWs), Acree v. Republic of Iraq, as well as a brief synopsis of
 relevant legislative proposals (S. 1257, H.R. 1321, H.R. 865, H.Con.Res. 93). These
 issues are covered in greater depth in CRS Report RL31258, Suits Against Terrorist
 States By Victims of Terrorism. The report will be updated.

    Ordinarily, foreign States, including their agencies and instrumentalities, may not be
sued in U.S. courts unless they waive their sovereign immunity or an exception under the
Foreign Sovereign Immunities Act (FSIA) (28 U.S.C. §§ 1602 et seq.) applies. The FSIA
provides a list of circumstances where U.S. federal courts will not recognize foreign
sovereign immunity. In these circumstances, U.S. courts may exercise jurisdiction over
a dispute and treat a foreign state as if it were a private entity. It does not establish
liability or a cause of action; it merely removes foreign sovereign immunity as a defense
to the courts' jurisdiction. The property of foreign States is also immune from judicial
attachmentto enforce judgments, unless thepropertyis exceptedunder28 U.S.C. § 1610.

    In 1996 Congress amended the FSIA to allow civil suits by U.S. victims of terrorism
against designated State sponsors of terrorism (DSST)l responsible for, or complicit in,


Congressional   Research  Service +  The Library of Congress


The list, established by the State Department, currently includes Cuba, Iran, Libya, North
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