9/11 Victims’ Families Granted $1.8 Billion Default Judgment

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A New York federal judge has approved a $1.8 billion default judgment against the Islamic Republic of Iran for 9/11 victims.

U.S. District Judge George B. Daniels accepted Magistrate Judge Sarah Netburn’s recommendation for damages sought in multidistrict litigation submitted Oct. 12, stating that there were no objections and no response from Iran regarding the lawsuits.

The multidistrict litigation consisted of numerous related actions filed on behalf of the estates and family members of the victims of the 9/11 terrorist attacks who sought entry of a default judgment awarding them compensatory and punitive damages against the Islamic Republic of Iran, Ayatollah Ali Hoseini Khamenei, Hezbollah and other Iranian individuals and entities.

But Judge Daniels only gave partial approval to Judge Netburn’s report and recommendation issued a couple days later since plaintiffs who faced recommendation for no damages brought objections.

Instead, Judge Netburn accepted a judgment of more than $82 million to be awarded to 13 plaintiffs deemed as “immediate family members” due to their relationship (i.e. step parent, sibling, grandchild, fiancé, domestic partner) with the 9/11 victim.  These family members also were granted prejudgment interest at 4.96 percent annual rate, set to be compounded each year

Other parties considered non-immediate family members were recommended not to be awarded damages. Specifically, these plaintiffs, known as the Hoglan plaintiffs, noted objections to this recommendation.

“There is no clear error on the face of the record as to those portions of the report to which no objections were made,” Judge Daniels said. “This court has considered the issues raised in the Hoglan plaintiffs’ objections and defers judgment until all parties subject to the scheduling order have presented their motions and fully briefed the issue of non-immediate family members’ entitlement to solatium damage awards, and Magistrate Judge Netburn has presented any further report and recommendations which such motions require.”

Separate rulings were also made, awarding judgment for plaintiffs known as the Bauer and Ashton plaintiffs.

In April of this year Judge Daniels found Iran to have provided material support to al-Qaida prior to and after the 9/11 attacks.

In his ruling, he validated witness testimony that the Iranian government and Hezbollah provided training, funding, and logistical support to al-Qaida that was essential in enabling the 9/11 attacks, as well as other attacks, including the bombing of the U.S. Embassies in Kenya and Tanzania in 1998, the suicide boat bombing of the U.S.S. Cole near Yemen in 2000, and the Khobar Towers bombing in Riyadh.

In addition to his overall finding against the Tehran regime and Hezbollah, Judge Daniels also held that Ayatollah Khamenei, among other senior Iranian and Hezbollah officials — bore direct responsibility for the September 11 operation.

The Hoglan plaintiffs are represented by Timothy B. Fleming, Dennis G. Pantazis, Melina Goldfarb of Wiggins Childs Pantazis Fisher Goldfarb PLLC, Richard D. Hailey and Mary Beth Ramey of Ramey & Hailey and Robert M. Foote and Craig S. Meilke of Foote Mielke Chavez & O’Neil LLC.

The Bauer plaintiffs are represented by Dorothea M. Capone of Baumeister & Samuels PC.

The Ashton plaintiffs are represented by James P. Kreindler of Kreindler & Kreindler.

The 9/11 Victims Class Action Lawsuit is In Re: Terrorist Attacks on September 11, 2001, Case No. 1:03 MDL 1570 (GBD) (FM), in the U.S. District Court for the Southern District of New York.