Ortiz v. Islamic Republic of Iran

Background

The opinion concerns motions for partial final default judgment in multidistrict litigation arising from the September 11, 2001 terrorist attacks. Lisa Ortiz, the personal representative of the estate of Angel R. Ortiz, moved for partial final default judgment on liability and damages against the Islamic Republic of Iran. Certain plaintiffs in related Burnett and Ashton actions also filed motions against Iran, the Islamic Revolutionary Guard Corps, and the Central Bank of the Islamic Republic of Iran, referred to collectively as the Iran Defendants.

Magistrate Judge Sarah Netburn recommended granting the Ortiz and Burnett motions, denying the Ashton plaintiffs’ motion without prejudice, awarding pain-and-suffering damages listed in Exhibits A and B, reducing Mr. Anthony Ciarnella’s award as recommended, and awarding prejudgment interest at 4.96 percent annually, compounded yearly, from September 11, 2001, through judgment. No party objected to the recommendation. Judge Daniels reviewed it for clear error and adopted it.

Jurisdiction, Service, and Default

The court held that it had subject-matter and personal jurisdiction over the claims against the Iran Defendants. For the U.S. national plaintiffs, the court relied on the terrorism exception in 28 U.S.C. § 1605A. For certain non-U.S. national plaintiffs, it relied on 28 U.S.C. § 1605B(b) as an exception to foreign sovereign immunity. The court also found that service was properly completed under 28 U.S.C. § 1608(a)(4) and § 1608(b)(3).

The Iran Defendants failed to answer or otherwise respond within the required sixty-day period after service. The Clerk of Court entered certificates of default against them. The court therefore agreed that the Iran Defendants had defaulted.

Liability Rulings

For Lisa Ortiz, the court held Iran liable under § 1605A, relying in part on evidence and issues addressed in an earlier decision. The court entered judgment as to liability on Ortiz’s § 1605A claims and entered a partial final default judgment against Iran.

For the U.S. national Burnett plaintiffs, the court stated that liability had already been established under § 1605A and that the Iran Defendants remained liable. For the non-U.S. national Burnett plaintiffs, the court held that they could proceed under § 1605B(b) and New York tort law. Applying New York law, the court concluded that the plaintiffs established assault and battery claims and that the Iran Defendants aided and abetted the attacks. The court entered judgments as to liability on those claims.

The court denied the Ashton plaintiff Zofia Cieslik’s claim under § 1605A without prejudice because non-U.S. national plaintiffs could not bring claims under that provision and because she had not identified a proper cause of action arising from a specific source of law. The court allowed her to amend and assert a new cause of action.

Damages and Final Dispositions

The court approved the personal-injury damages framework previously adopted for individual plaintiffs injured during the attacks. It found that the injuries described in the declarations supported the categories and awards recommended by Magistrate Judge Netburn. The court awarded the pain-and-suffering amounts listed in Exhibits A and B, including $5 million for Lisa Ortiz and a $12 million award for Felipe David based on the severe injuries described in the opinion. It also approved the recommended reduction for Mr. Ciarnella.

The court awarded prejudgment interest at 4.96 percent per year, compounded annually, from September 11, 2001, until the date of judgment. Plaintiffs listed in Exhibits A and B may later seek punitive or other damages consistent with future court rulings, and plaintiffs not listed in those exhibits may later apply for damage awards to the extent they have not already done so.

The court denied the Ashton plaintiff’s motion without prejudice, with leave to amend, and granted the Burnett and Ortiz plaintiffs’ motions. It ordered partial final default judgments for Ortiz and for the specified Burnett plaintiffs and directed the Clerk to close the listed motions.