Insurer case against Saudi Arabia Sovereign Immunity Tests

 

Thursday, Mar 05,2009, 4:28:36 PM   Click:

Insurer case against Saudi Arabia Sovereign Immunity Tests Raymond J Lehmann
Sixteen years to the day after a car bomb parked below Manhattan, World Trade Center marked the first attack by an al-Qaeda on American soil, insurers' subrogation against the Kingdom of Saudi Arabia for losses suffered in the attacks could set a major precedent for future readings of the Foreign Sovereign Immunities Act, according to Stephen Cozen, chairman of Philadelphia law firm Cozen O'Connor.

Cozen said that the case - recently by the Supreme Court of the United States Solicitor General for an advisory opinion - would determine whether the 1976 law bars against an agency or instrumentality "of a foreign state and if the courts U.S. has personal jurisdiction over foreigners suspected of having provided material support to a terrorist act in the United States.

On appeal by the 2nd U.S. Circuit Court of Appeals, $ 10 billion Federal Insurance Co. et al. al v. Saudi Arabia joined a consortium of insurers, the World Trade Center and other tenants in a petition that the charges of the kingdom, the royal family, Saudi High Commission and other charities conspiracy and abetting, providing material support to al-Qaida and other crimes relating to the 26 February 1993 attack.

"People who are most dangerous, and people who are most responsible for the proliferation of international terrorism, are not the guys who fly planes into buildings, but all persons who provide money and resources needed to enable them to do this, "Cozen said, adding that the U.S. government in the past, has taken the position that FSIA does not protect government officials, and that personal jurisdiction can be extended to indirect actors .

The case would also have a precedent to determine whether the FSIA to "non-crime" exception bars against a foreign state that has not been officially designated a sponsor of terrorism.

"We want the civil justice system open to U.S. citizens who are injured in the United States by the tortuous conduct of third parties, regardless of whether this is tortuous conduct of kidnapping, murder, what do you "Cozen said.

Lawyers for the kingdom, the petitioners accused of playing fast and loose with the facts. "They cite portions of the 9 / 11 Commission report found" no evidence "of a close relationship between al Qaeda and the classification Saudi officials.

"The complainants as well take liberties when they characterized this lawsuit as an action against those who" deliberately channeled resources to al Qaeda ... knowing that Al Qaeda's intention to use these resources to attack the United States and its citizens, respondents wrote. "The complaints allege that the princes who made donations to Islamic charities, which in turn, allegedly diverted funds to al Qaeda."

Cozen said he and fellow senior attorney Carter G. Phillips of Sidley Austin LLP - a former deputy solicitor general - both felt that our case was so overwhelming, yet so important on many levels, that the Supreme Court would probably refer the case to the General Counsel . Cozen said he was unaware of any reason why the Obama Administration will change opinions about the last topic.

"I read the Supreme Court's determination that moment, positive ... which is usually an indication that your application has merit, and the Solicitor General is now having to seek the advice of the Department of Justice, the Department of State and the Treasury Department before, I think it consults with the White House on the position it should take, "said Cozen.

Elena Kagan was appointed by President Barack Obama to fill the position, becoming the first woman to do so, but has not yet been confirmed by the U.S. Senate. Long Deputy Solicitor General Edwin Kneedler is currently serving as General Counsel.

He said he expected to take 60 to 90 days for the Obama administration to formulate its position and should be announced before the Supreme Court adjourns in May. If the court decides to hear the case, it would be after the new term begins in October.

(By RJ Lehmann, director of the Washington office: raymond.lehmann @ ambest.com)

Copyright © 2009 hours Best Company, Inc. Sixteen years to the day after a car bomb parked below Manhattan, World Trade Center marked the first attack by an al-Qaida in the United States