Federal Judge Sets Aside $200 Million Terror Judgment Against Palestinian Authority

On Thursday, US District Judge Victor Marrero set aside a nearly $200 million civil judgment awarded to American victims of Palestinian terrorism in Israel, allowing for a new trial. Judge Marrero did require the Palestinian Authority to post a $192.7 million bond in order to assure it does not default in any possible future judgments, and ordered the group to pay all legal expenses previously accrued by the plaintiffs in their suit.^[1]

Palestinian officials initially warned that such suits were likely to bankrupt their organization, and had urged top US government officials, including Secretary of State Condoleezza Rice, to halt the action. The Bush administration ultimately chose not to intervene or provide an opinion on the case, a move that would have forced a choice between supporting monetary damages for terror victims and supporting the Palestinian government in hopes for progress in the Israeli-Palestinian peace process. Judge Marrero noted in his decision that the Bush administration did make a statement to the court noting its concern that similar lawsuits could damage “financial and political viability” of the tenuous existence of the Palestinian Authority.^[2]

The plaintiffs sued under the Antiterrorism Act,^[3] a 1990 federal law passed following Achille Lauro hijacking, but the Palestinian Authority argued that it was immune from such suits, citing sovereign immunity. Federal courts rejected the claim, as Palestine is not currently recognized as a state by the US. ^[4]

In 2006, a judgment of almost $174 million was levied against the Palestinian Liberation Organization and Palestinian Authority, the latter of whom refused not to defend itself in court. Subsequently, the Palestinian Authority stated it was prepared to mount a defense against the charges and desired a new trial. Judge Marrero’s opinion to set aside the judgment now allows the organization the opportunity to do so.^[5]

Further information on criminal liability arising from acts of terrorism can be found on the Terrorism Crimes site, as well as the Terrorism Crimes Blogs.
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[1] Glenn Kessler, Palestinian Authority Granted New Trial in Terrorism Damages Suit, March 28, 2008 (available at www.washingtonpost.com).

[2] Id.

[3] See Knox v Palestine Liberation Organization, 230 FRD 383 (2005).

[4] Kessler.

[5] Id.