Bank Markazi v. Peterson et al.
Issues
Did Congress violate the constitutional principle of separation of powers by enabling plaintiffs in a single pending case to attach Iranian assets to satisfy their unpaid judgments?
In dozens of consolidated cases, Deborah D. Peterson and other plaintiffs (collectively, “Peterson”) representing terror victims collected billions of dollars in judgments against Iran for financing terrorist attacks. See Peterson v. Republic of Iran et al., 758 F.3d 185, 188 (2d Cir. 2014). In 2010, Peterson sued Bank Markazi, the government-owned Central Bank of Iran, under the Terrorism Risk Insurance Act (“TRIA”). See id. TRIA allows plaintiffs to attach or garnish the blocked assets of terrorists or their agents. While the action was pending, President Obama issued an executive order blocking the transfer of Bank Markazi’s assets from New York-based accounts, and Congress passed the Iran Threat Reduction and Syria Human Rights Act. See id. at 188–89. The Act’s relevant portion, section 8772, authorized the Peterson plaintiffs to execute against Bank Markazi’s assets to satisfy their unpaid judgments. The law was explicitly limited to Peterson’s action, pending in the District Court for the Southern District of New York. Based on section 8772, the district court granted Peterson Summary judgment, and the Second Circuit affirmed. The Supreme Court will decide whether Congress violated the constitutional principle of separation of powers by enacting laws that compelled a certain outcome in Peterson’s case. See Brief for Petitioner Bank Markazi, The Central Bank of Iran at i; Brief for Respondents Deborah D. Peterson, et al., at i. Bank Markazi argues that section 8772 impermissibly determines the outcome of a single pending case, which marks a Congressional expansion of power that is not supported by the Constitution or the Court’s precedent. See Brief for Petitioner at 26, 35. Peterson contends that Bank Markazi’s attack on the statute is unwarranted, because Congress has the constitutional authority to modify the governing law for pending civil litigation in in outcome-determinative ways. See Brief for Respondents at 16, 35–37. The outcome of this case will affect the balance of power between Congress and the courts, and clarify Congress’ power to affect pending litigation. See Brief of Amici Curiae Federal Courts Scholars, in Support of Petitioner at 11–13.
Questions as Framed for the Court by the Parties
Does § 8772—a statute that effectively directs a particular result in a single pending case—violate the separation of powers?Does § 8772—a statute that effectively directs a particular result in a single pending case—violate the separation of powers?
Deborah D. Peterson and several individuals (collectively, “Peterson”) represent people killed in terrorist attacks sponsored by Iran. See Peterson v. Republic of Iran et al., 758 F.3d 185, 188 (2d Cir.