Podcasts about iran threat reduction

On April 20, 2016, the Supreme Court decided Bank Markazi v. Peterson. The Iran Threat Reduction and Syria Human Rights Act of 2012 makes a designated set of assets available to satisfy the judgments gained in separate actions by victims of terrorist acts sponsored by Iran. Section 8772(a)(2) of the statute requires a court, before allowing execution against these assets, to determine, inter alia, “whether Iran holds equitable title to, or the beneficial interest in, the assets.” Respondents—more than 1,000 victims of Iran-sponsored acts of terrorism, their estate representatives, and surviving family members—hold judgments against Iran and moved for turnover of about $1.75 billion in bond assets held in a New York bank account allegedly owned by Bank Markazi, the Central Bank of Iran. When respondents invoked §8772, Bank Markazi argued that the statute was unconstitutional, contending that Congress had usurped the judicial role by directing a particular result in a pending enforcement proceeding and thereby violating the separation of powers. The District Court disagreed and upheld the statute. The U.S. Court of Appeals for the Second Circuit affirmed, and Bank Markazi took its objection to the U.S. Supreme Court. -- By a vote of 6-2, the Supreme Court affirmed the judgment of the Second Circuit. Justice Ginsburg delivered the opinion of the Court, which held that Section 8772 does not violate the separation of powers. Justice Ginsburg was joined by Justices Kennedy, Breyer, Alito, and Kagan. Justice Thomas joined the majority opinion in all but Part II-C. Chief Justice Roberts filed a dissenting opinion in which Justice Sotomayor joined. -- To discuss the case, we have Erik Zimmerman, who is an attorney at Robinson, Bradshaw & Hinson, PA.

This case concerns nearly $2 billion of bonds in which Bank Markazi, the Central Bank of Iran, held an interest in Europe as part of its foreign currency reserves. Plaintiffs, who hold default judgments against Iran, tried to seize the assets. While the case was pending, Congress enacted §502 of the Iran Threat Reduction and Syria Human Rights Act of 2012, 22 U.S.C. §8772. By its terms, that statute applies only to this one case: to “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. “In order to ensure that Iran is held accountable for paying the judgments,” it provides that, notwithstanding any other state or federal law, the assets “shall be subject to execution” upon only two findings—essentially, that Bank Markazi has a beneficial interest in them and that no one else does. The question presented is:Whether §8772—a statute that effectively directs a particular result in a single pending case—violates the separation of powers.

On this episode, we review the oral arguments in Bank Markazi v. Peterson, which asks the Supreme Court to resolve whether §502 of the Iran Threat Reduction and Syria Human Rights Act of 2012 directed to “the financial assets that are identified in and the subject of proceedings in New York in Peterson et al. v. Islamic Republic of Iran et al., Case No. 10 Civ. 4518," violates the separation of powers. At stake is nearly $2 billion of bonds of the Central Bank of Iran that plaintiffs are seeking to attach to pay judgments for hundreds of Americans killed in multiple Iran‐sponsored terrorist attacks.

In 2012, Congress passed the Iran Threat Reduction and Syria Human Rights Act, which allowed the Plaintiffs in Bank Markazi v. Peterson to obtain Iranian funds held in New York to satisfy a judgment rendered in U.S. Courts.  This action created a host of issues which are dealt with in this week's episode, including why judgments are the most important part of every civil case, the Court's view on Separation of Powers issues, whether this is a Bill of Attainder and what is a Bill of Attainder.