Steven Greenbaum v. Islamic Republic of Iran


United States Court of Appeals FOR THE DISTRICT OF COLUMBIA CIRCUIT Argued December 1, 2022 Decided May 9, 2023 No. 22-5080 STEVEN M. GREENBAUM, ON BEHALF OF HIMSELF INDIVIDUALLY AND AS ADMINISTRATOR OF THE ESTATE OF JUDITH (SHOSHANA) LILLIAN GREENBAUM, DECEASED, ET AL., APPELLANTS v. ISLAMIC REPUBLIC OF IRAN, ET AL., APPELLEES Consolidated with 22-5081, 22-5083, 22-5085 Appeals from the United States District Court for the District of Columbia (No. 1:02-cv-02148) (No. 1:03-cv-01708) (No. 1:06-cv-00473) (No. 1:06-cv-00745) Patrick N. Petrocelli argued the cause for appellants. With him on the briefs was James L. Bernard. 2 Brian P. Hudak, Assistant U.S. Attorney, argued the cause and filed the brief for intervenor-appellee United States of America. Jane M. Lyons and Peter C. Pfaffenroth, Assistant U.S. Attorneys, entered appearances. Before: MILLETT and CHILDS, Circuit Judges, and GINSBURG, Senior Circuit Judge. Opinion for the Court filed by Senior Circuit Judge GINSBURG. GINSBURG, Senior Circuit Judge: The United States seized oil cargo it claims belongs to the Islamic Republic of Iran. The appellants attached the oil in order to satisfy money judgments they hold against Iran. The district court upheld the United States’ claim of sovereign immunity and quashed the attachments. Because we agree that federal sovereign immunity applies, and because the appellants identify no waiver of that immunity, we affirm the judgment of the district court. I. Background A. The Forfeiture Proceeding In December 2020, the United States obtained a warrant to seize oil cargo allegedly belonging to the armed forces of Iran. The oil cargo was then aboard the M/T Achilleas, outside U.S. waters. The owner of the Achilleas acknowledged the warrant and agreed to transport the oil cargo to the United States. In the meantime, the United States filed a civil forfeiture complaint in the district court (Friedman, J.), and the clerk issued a warrant arresting the oil cargo and constructively bringing it within the Government’s custody. 18 U.S.C. 3 § 981(c). To avoid incurring storage costs while the forfeiture proceeding remains pending, the United States sought and received the court’s permission to sell the oil before a final judgment. The net proceeds of the sale—nearly $100 million— are being held in an interest-bearing escrow account of the United States. The civil forfeiture proceeding remains pending. B. The Execution Proceedings Well before these events, the appellants had obtained money judgments in the district court (Lamberth, J.) against Iran, as permitted by the exception to the Foreign Sovereign Immunities Act (FSIA) for victims of state-sponsored terrorism. 28 U.S.C. § 1605A(a); see also 28 U.S.C. § 1605(a)(7) (2007). They have been trying to collect against Iran ever since. Catching wind of the arrest of the oil cargo, the appellants sought to execute their judgments. By order of Judge Lamberth, the clerk issued writs of attachment ordering the U.S. Marshal to seize the oil cargo and directing the U.S. Attorney’s Office to appear as garnishee in the execution proceedings. See Fed. R. Civ. P. 69(a)(1); D.C. Code §§ 16- 544, 546. C. The Decision of …

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