34 USC 20144 - Justice for United States victims of state sponsored terrorism

U.S Code last checked for updates: Nov 22, 2024

§ 20144.

Justice for United States victims of state sponsored terrorism

(a)

Short title

(b)

Administration of the United States Victims of State Sponsored Terrorism Fund

(1)

Administration of the Fund

(A)

Appointment and terms of Special Master

(i)

Initial appointment

(ii)

Additional terms

(iii)

Special Master to administer compensation from the Fund

(B)

Administrative costs and use of Department of Justice personnel

(C)

Compensation of Special Master

(2)

Publication of regulations and procedures

(A)

In general

(B)

Information regarding other sources of compensation

(3)

Decisions of the Special Master

All decisions made by the Special Master with regard to compensation from the Fund shall be—

(A)

in writing and provided to the Attorney General, each claimant and, if applicable, the attorney for each claimant; and

(B)

final and, except as provided in paragraph (4), not subject to administrative or judicial review.

(4)

Review hearing

(A)

Not later than 30 days after receipt of a written decision by the Special Master, a claimant whose claim is denied in whole or in part by the Special Master may request a hearing before the Special Master pursuant to procedures established by the Special Master.

(B)

Not later than 90 days after any such hearing, the Special Master shall issue a final written decision affirming or amending the original decision. The written decision is final and nonreviewable.

(c)

Eligible claims

(1)

In general

For the purposes of this section, a claim is an eligible claim if the Special Master determines that—

(A)

the judgment holder, or claimant, is a United States person;

(B)

the claim is described in paragraph (2); and

(C)

the requirements of paragraph (3) are met.

(2)

Certain claims

The claims referred to in paragraph (1) are claims for—

(A)

compensatory damages awarded to a United States person in a final judgment—

(i)

issued by a United States district court under State or Federal law against a foreign state that was designated as a state sponsor of terrorism at the time the acts described in clause (ii) occurred or was so designated as a result of such acts; and

(ii)

arising from acts of international terrorism, for which the foreign state was determined not to be immune from the jurisdiction of the courts of the United States under section 1605A, or section 1605(a)(7) (as such section was in effect on January 27, 2008), of title 28;

(B)

the sum total of $10,000 per day for each day that a United States person was taken and held hostage from the United States embassy in Tehran, Iran, during the period beginning November 4, 1979, and ending January 20, 1981; or

(C)

damages for the spouses and children of the former hostages described in subparagraph (B), if such spouse or child is identified as a member of the proposed class in case number 1:00-CV-03110 (EGS) of the United States Court for the District of Columbia, in the following amounts:

(i)

For each spouse of a former hostage identified as a member of the proposed class described in this subparagraph, a $600,000 lump sum.

(ii)

For each child of a former hostage identified as a member of the proposed class described in this subparagraph, a $600,000 lump sum.

(3)

Deadline for application submission

(A)

In general

The deadline for submitting an application for a payment under this subsection is as follows:

(i)

Not later than 90 days after the date of the publication required under subsection (b)(2)(A), with regard to an application based on—

(I)

a final judgment described in paragraph (2)(A) obtained before that date of publication; or

(II)

a claim described in paragraph (2)(B) or (2)(C), except that any United States person with an eligible claim described in paragraph (2)(B) who did not have an eligible claim before November 21, 2019, shall have 90 days from November 21, 2019, to submit an application for payment.

(ii)

Not later than 90 days after the date of obtaining a final judgment, with regard to a final judgment obtained on or after the date of that publication, unless—

(I)

the final judgment was awarded to a 9/11 victim, 9/11 spouse, or 9/11 dependent before November 21, 2019, in which case such United States person shall have 90 days from the date of enactment of such Act to submit an application for payment; or

(II)

the final judgment was awarded to a 1983 Beirut barracks bombing victim or a 1996 Khobar Towers bombing victim before December 29, 2022, in which case such United States person shall have 180 days from December 29, 2022, to submit an application for payment.

(B)

Good cause

(d)

Payments

(1)

To whom made

(2)

Timing of initial payments

(3)

Payments to be made pro rata

(A)

In general

(i)

Pro rata basis

Except as provided in subparagraph (B) and subject to the limitations described in clause (ii), the Special Master shall carry out paragraph (1), by—

(I)

dividing all available funds in half and allocating 50 percent of the available funds to non-9/11 related victims of state sponsored terrorism and the remaining 50 percent of the available funds to 9/11 related victims of state sponsored terrorism;

(II)

further dividing the funds allocated to non-9/11 related victims of state sponsored terrorism on a pro rata basis, based on the amounts outstanding and unpaid on eligible claims, until such amounts have been paid in full or the Fund is closed; and

(III)

further dividing the funds allocated to 9/11 related victims of state sponsored terrorism on a pro rata basis, based on the amounts outstanding and unpaid on eligible claims, until such amounts have been paid in full or the Fund is closed.

(ii)

Limitations

The limitations described in this clause are as follows:

(I)

In the event that a United States person has an eligible claim that exceeds $20,000,000, the Special Master shall treat that claim as if it were for $20,000,000 for purposes of this section.

(II)

In the event that a non-9/11 related victim of state sponsored terrorism and the immediate family members of such person have claims that if aggregated would exceed $35,000,000, the Special Master shall, for purposes of this section, reduce such claims on a pro rata basis such that in the aggregate such claims do not exceed $35,000,000.

(III)

In the event that a 9/11 victim, 9/11 spouse, or 9/11 dependent and the immediate family members of such person (who are also 9/11 victims, 9/11 spouses, or 9/11 dependents) have claims that if aggregated would exceed $35,000,000, the Special Master shall, for purposes of this section, reduce such claims on a pro rata basis such that in the aggregate such claims do not exceed $35,000,000.

(IV)

In the event that a 9/11 family member and the family members of such person (who are also 9/11 family members) have claims that if aggregated would exceed $20,000,000, the Special Master shall, for purposes of this section, reduce such claims on a pro rata basis such that in the aggregate such claims do not exceed $20,000,000.

(B)

Minimum payments

(i)

Any applicant with an eligible claim described in subsection (c)(2) who has received, or is entitled or scheduled to receive, any payment that is equal to, or in excess of, 30 percent of the total compensatory damages owed to such applicant on the applicant’s claim from any source other than this Fund shall not receive any payment from the Fund until such time as all other eligible applicants have received from the Fund an amount equal to 30 percent of the compensatory damages awarded to those applicants pursuant to their final judgments or to claims under subsection (c)(2)(B) or (c)(2)(C). For purposes of calculating the pro rata amounts for these payments, the Special Master shall not include the total compensatory damages for applicants excluded from payment by this subparagraph.

(ii)

To the extent that an applicant with an eligible claim has received less than 30 percent of the compensatory damages owed that applicant under a final judgment or claim described in subsection (c)(2) from any source other than this Fund, such applicant may apply to the Special Master for the difference between the percentage of compensatory damages the applicant has received from other sources and the percentage of compensatory damages to be awarded other eligible applicants from the Fund.

(iii)

For the purposes of clause (i), the calculation of the total compensatory damages received or entitled or scheduled to be received by an applicant who is a 1983 Beirut barracks bombing victim or a 1996 Khobar Towers bombing victim from any source other than the Fund shall include the total amount received by the applicant as a result of or in connection with the proceedings captioned Peterson v. Islamic Republic of Iran, No. 10 Vic. 4518 (S.D.N.Y.), or the proceedings captioned In Re 650 Fifth Avenue & Related Properties, No. 08 Civ. 10934 (S.D.N.Y. filed Dec. 17, 2008), such that any such applicant who has received or is entitled or scheduled to receive 30 percent or more of such applicant’s compensatory damages judgment as a result of or in connection with such proceedings shall not receive any payment from the Fund, except in accordance with the requirements of clause (i), or as part of a lump-sum catch-up payment in accordance with paragraph (4)(D).

(4)

Additional payments

(A)

In general

(B)

Third round payments

(C)

Lump sum catch-up payments for 9/11 victims, 9/11 spouses, and 9/11 dependents

(i)

In general

(ii)

Public comment

(iii)

Report

Not later than 30 days after the expiration comment period in clause (ii), the Comptroller General of the United States shall submit to the Committee on the Judiciary and the Committee on Appropriations of the Senate, the Committee on the Judiciary and the Committee on Appropriations of the House of Representatives, and the Special Master a report that includes the determination of the Comptroller General on—

(I)

the amount of the lump sum catch-up payment for each 9/11 victim;

(II)

the amount of the lump sum catch-up payment for each 9/11 spouse;

(III)

the amount of the lump sum catch-up payment for each 9/11 dependent; and

(IV)

the total amount of lump sum catch-up payments described in subclauses (I) through (III).

(iv)

Authorization

(I)

In general

(II)

Appropriations

(aa)

In general

(bb)

Limitation

(D)

Lump sum catch-up payments for 1983 Beirut barracks bombing victims and 1996 Khobar Towers bombing victims

(i)

In general

(ii)

Public comment

(iii)

Report

Not later than 30 days after the expiration of the comment period in clause (ii), the Comptroller General of the United States shall submit to the Committee on the Judiciary and the Committee on Appropriations of the Senate, the Committee on the Judiciary and the Committee on Appropriations of the House of Representatives, and the Special Master a report that includes the determination of the Comptroller General on—

(I)

the amount of the proposed lump sum catch-up payment for each 1983 Beirut barracks bombing victim;

(II)

the amount of the proposed lump sum catch-up payment for each 1996 Khobar Towers bombing victim; and

(III)

amount of lump sum catch-up payments described in subclauses (I) and (II).

(iv)

Lump sum catch-up payment reserve fund

(I)

In general

(II)

Authorization

(III)

Appropriations

(aa)

In general

(bb)

Limitation

(IV)

Expiration

(aa)

In general

(bb)

Remaining amounts

(5)

Subrogation and retention of rights

(A)

United States subrogated to creditor rights to the extent of payment

(B)

Rights retained

(e)

United States Victims of State Sponsored Terrorism Fund

(1)

Establishment of United States Victims of State Sponsored Terrorism Fund

(2)

Deposit and transfer

Beginning on December 18, 2015, the following shall be deposited or transferred into the Fund for distribution under this section:

(A)

Forfeited funds and property

(i)

Criminal funds and property

(ii)

Civil funds and property

(B)

Transfer into Fund of certain assigned assets of Iran and election to participate in Fund

(i)

Deposit into Fund of assigned proceeds from sale of properties and related assets identified in In Re 650 Fifth Avenue & Related Properties

(I)

In general

(II)

Limitation

The following proceeds resulting from any sale of the properties and related assets identified in subclause (I) shall not be transferred into the Fund:

(aa)

The percentage of proceeds attributable to any party identified as a Settling Judgment Creditor in the order dated April 16, 2014, in such proceedings, who does not make an election (described in clause (iii)) to participate in the Fund.

(bb)

The percentage of proceeds attributable to the parties identified as the Hegna Judgment Creditors in such proceedings, unless and until a final judgment is entered denying the claims of such creditors.

(ii)

Deposit into Fund of assigned assets identified in Peterson v. Islamic Republic of Iran

(iii)

Election to participate in the Fund

(iv)

Application for conditional payment

A United States person who is a judgment creditor or a Settling Judgment Creditor in the proceedings identified in clause (iii) and who does not elect to participate in the Fund may, notwithstanding such failure to elect, submit an application for conditional payment from the Fund, subject to the following limitations:

(I)

In general

(II)

Exception

(aa)

In the event that an adverse final judgment is entered in the proceedings captioned Peterson v. Islamic Republic of Iran, No. 10 Civ. 4518 (S.D.N.Y), prior to a final judgment being entered in the proceedings captioned In Re 650 Fifth Avenue & Related Properties, No. 08 Civ. 10934 (S.D.N.Y. filed Dec. 17, 2008), the Special Master shall release a portion of an eligible claimant’s conditional payment to such eligible claimant if the Special Master anticipates that such claimant will receive less than the amount of the conditional payment from any proceeds from a final judgment that is entered in favor of the plaintiffs in In Re 650 Fifth Avenue & Related Properties. Such portion shall not exceed the difference between the amount of the conditional payment and the amount the Special Master anticipates such claimant will receive from the proceeds of In Re 650 Fifth Avenue & Related Properties.

(bb)

In the event that a final judgment is entered in favor of the plaintiffs in the proceedings captioned Peterson v. Islamic Republic of Iran, No. 10 Civ. 4518 (S.D.N.Y) and funds are distributed, the payments allocated to claimants who applied for a conditional payment under this subparagraph shall be considered void, and any funds previously allocated to such conditional payments shall be made available and distributed to all other eligible claimants pursuant to subsection (d).

(v)

Exception for 1983 Beirut barracks bombing victims and 1996 Khobar Towers bombing victims

Nothing in this subparagraph shall apply with respect to—

(I)

a 1983 Beirut barracks bombing victim or a 1996 Khobar Towers bombing victim who submits an application under subsection (c)(3)(A)(ii)(II) on or after December 29, 2022; or

(II)

the assets, or the net proceeds of the sale of properties or related assets, attributable to a person described in subclause (I).

(3)

Expenditures from Fund

(4)

Management of Fund

(5)

Funding

(6)

Termination

(A)

In general

(B)

Closing of Fund

(f)

Attorneys’ fees and costs

(1)

In general

(2)

Penalty

(g)

Award of compensation to informers

(1)

In general

(2)

Person described

A person meets the requirements of this paragraph if—

(A)

the person identifies and notifies the Attorney General of funds or property—

(i)

of a state sponsor of terrorism, or held by a third party on behalf of or subject to the control of that state sponsor of terrorism;

(ii)

that were not previously identified or known by the United States Government; and

(iii)

that are subsequently forfeited directly or in the form of substitute assets to the United States; and

(B)

the Attorney General finds that the identification and notification under subparagraph (A) by that person substantially contributed to the forfeiture to the United States.

(h)

Special exclusion from compensation

(i)

Report to Congress

Within 30 days after authorizing the payment of compensation of eligible claims pursuant to subsection (d), the Special Master shall submit to the chairman and ranking minority member of the Committee on the Judiciary of the House of Representatives and the chairman and ranking minority member of the Committee on the Judiciary of the Senate a report on the payment of eligible claims, which shall include—

(1)

an explanation of the procedures for filing and processing of applications for compensation; and

(2)

an analysis of the payments made to United States persons from the Fund and the amount of outstanding eligible claims, including—

(A)

the number of applications for compensation submitted;

(B)

the number of applications approved and the amount of each award;

(C)

the number of applications denied and the reasons for the denial;

(D)

the number of applications for compensation that are pending for which compensatory damages have not been paid in full; and

(E)

the total amount of compensatory damages from eligible claims that have been paid and that remain unpaid.

(j)

Definitions

In this section the following definitions apply:

(1)

Act of international terrorism

The term “act of international terrorism” includes—

(A)

an act of torture, extrajudicial killing, aircraft sabotage, or hostage taking as those terms are defined in section 1605A(h) of title 28; and

(B)

providing material support or resources, as defined in section 2339A of title 18, for an act described in subparagraph (A).

(2)

Adverse final judgment

(3)

Compensatory damages

(4)

Final judgment

(5)

Fund

(6)

Source other than this Fund

(7)

State sponsor of terrorism

(8)

United States person

(9)

Non-9/11 related victim of state sponsored terrorism

(10)

9/11 related victim of state sponsored terrorism

(11)

9/11 dependent

The term “9/11 dependent” means a United States person who has an eligible claim under subsection (c) who at the time of a 9/11 victim’s death was—

(A)

a dependent, as defined in section 104.3 of title 28, Code of Federal Regulations, or any successor thereto, of the 9/11 victim; or

(B)

the child of the 9/11 victim who has not, before November 21, 2019, received payment from the Fund.

(12)

9/11 family member

(13)

9/11 spouse

(14)

9/11 victim

(15)

1983 Beirut barracks bombing victim

The term “1983 Beirut barracks bombing victim”—

(A)

means a plaintiff, or estate or successor in interest thereof, who has an eligible claim under subsection (c) that arises out of the October 23, 1983, bombing of the United States Marine Corps barracks in Beirut, Lebanon; and

(B)

includes a plaintiff, estate, or successor in interest described in subparagraph (A) who is a judgment creditor in the proceedings captioned Peterson v. Islamic Republic of Iran, No. 10 Vic.2

 So in original. Probably should be “Civ.”

4518 (S.D.N.Y.), or a Settling Judgment Creditor as identified in the order dated May 27, 2014, in the proceedings captioned In Re 650 Fifth Avenue & Related Properties, No. 08 Vic.2 10934 (S.D.N.Y. filed Dec. 17, 2008).

(16)

1996 Khobar Towers bombing victim

The term “1996 Khobar Towers bombing victim”—

(A)

means a plaintiff, or estate or successor in interest thereof, who has an eligible claim under subsection (c) that arises out of the June 25, 1996 bombing of the Khobar Tower housing complex in Saudi Arabia; and

(B)

includes a plaintiff, estate, or successor in interest described in subparagraph (A) who is a judgment creditor in the proceedings captioned Peterson v. Islamic Republic of Iran, No. 10 Vic.² 4518 (S.D.N.Y.), or a Settling Judgment Creditor as identified in the order dated May 27, 2014, in the proceedings captioned In Re 650 Fifth Avenue & Related Properties, No. 08 Vic.² 10934 (S.D.N.Y. filed Dec. 17, 2008).

(k)

Severability

(Pub. L. 114–113, div. O, title IV, § 404, Dec. 18, 2015, 129 Stat. 3007; Pub. L. 116–69, div. B, title VII, § 1701(b)(1), Nov. 21, 2019, 133 Stat. 1140; Pub. L. 116–260, div. FF, title XVII, § 1705, Dec. 27, 2020, 134 Stat. 3293; Pub. L. 117–328, div. MM, § 101(b), Dec. 29, 2022, 136 Stat. 6106.)

cite as: 34 USC 20144