Fields v. Bank of New York Mellon

Background

The petitioners filed a petition seeking an order requiring Bank of New York Mellon to turn over blocked funds under Section 201(a) of the Terrorism Risk Insurance Act, Federal Rule of Civil Procedure 69, and provisions of New York law governing enforcement of judgments.

In an earlier related proceeding, a federal court entered a $849,956,529.28 judgment against Syria for providing material support to the Islamic State of Iraq and Syria, which carried out terrorist attacks that killed the petitioners’ family members. The earlier court later authorized attachment and execution to satisfy that judgment, and the judgment was registered in the Southern District of New York.

The funds at issue belonged to Grains Middle East Trading DWL-LLC. The Treasury Department’s Office of Foreign Assets Control designated that company under an executive order concerning Syria. Bank of New York Mellon then blocked two transfers, each originally valued at $3,753,839.73, for a total of $7,507,679.46. The bank reported that, after interest and fees, the funds totaled $7,513,610.24 as of July 15, 2025, and remained in its possession.

Court’s Findings

The court had previously determined that Grains Middle East Trading DWL-LLC was an agency or instrumentality of Syria and that Syria was a terrorist party under the Terrorism Risk Insurance Act. The court had also directed the clerk to issue a writ of execution covering the funds. The U.S. Marshal served that writ on Bank of New York Mellon on or about July 2, 2025.

The court found that no other judgment creditor or person claiming an interest in the funds had served the bank with an earlier writ. The petitioners therefore had priority concerning the funds. The court also found that the petitioners gave adequate notice to Grains Middle East Trading DWL-LLC, giving it an opportunity to object, including to challenge its designation as an agency or instrumentality of Syria. The company did not appear or respond. Bank of New York Mellon was properly served and did not oppose the motion.

Ruling and Effect

Judge Koeltl granted the unopposed motion for entry of a final turnover order and judgment. The court entered judgment for the petitioners for $7,513,610.24, plus any additional interest that accrued. Bank of New York Mellon must transfer those funds and the additional interest to the petitioners’ counsel within 30 days of the order, using wire instructions supplied by counsel.

The order states that the judgment overrides regulations, executive orders, or other requirements that would otherwise require the bank to continue holding the funds, prohibit payment to the petitioners, or require an Office of Foreign Assets Control license before the funds are transferred.

After the transfer, Bank of New York Mellon, its parent company, and its affiliates will be released from all obligations and liability concerning the funds, including claims by the petitioners, Grains Middle East Trading DWL-LLC, Syria, or any other person or entity. The order also permanently bars claims or proceedings against the bank concerning the funds. Once the transfer occurs, the writ and other enforcement measures concerning the funds will be terminated and treated as vacated. The judgment applies only to these specific funds, is final and appealable, and the court will retain jurisdiction to enforce it.