The United States imposes a wide variety of economic sanctions on foreign individuals, foreign corporations, countries, terrorist organizations, and other entities. Sanctions are an increasingly important part of U.S. foreign policy and they play a significant role in the work of the United Nations, the European Union, and some other countries. Many sanctions do not give rise to litigation, but some do. Indeed, some sanctions legislation provides a cause of action, lifts foreign sovereign immunity, or otherwise makes it easier to sue sanctioned entities in the United States.
Sanctions related to terrorism generate a lot of litigation, so we have grouped the two topics together. Sanctions are imposed for many reasons other than terrorism, however, and some terrorism-related litigation is not a product of sanctions. Finally, sanctions are a controversial topic globally, in part because it is unclear that they are effective at changing behavior and in part because they often have negative consequences for marginalized communities in the countries subjected to sanctions, including countries like Afghanistan, Iran, and Venezuela.
Second Circuit Expands Scope of Anti-Terrorism Act Suits Against Foreign States
On February 4, 2025, in Schansman v. Sberbank, the U.S. Court of Appeals for the Second Circuit ruled that foreign states and their agencies and instrumentalities may be sued under the Anti-Terrorism Act (ATA) for acts of international terrorism, provided that one of the enumerated exceptions to sovereign immunity in the Foreign Sovereign Immunities Act…
Continue ReadingChoice of Law in Terrorism Cases in the District of Columbia
When an Iranian-backed terrorist group operating out of Lebanon detonates a bomb in Israel that kills a U.S. citizen domiciled in Texas, what law governs civil claims brought against Iran in the District of Columbia (DDC)? Some version of this choice-of-law question has been presented to the DDC many times over the past two decades….
Continue ReadingHelms-Burton’s Statute of Repose
Helms-Burton plaintiffs just can’t seem to catch a break. They have struggled to establish personal jurisdiction over foreign defendants, run into issues of foreign sovereign immunity, and found that their property rights have expired. Now, the Second Circuit has held that the Helms-Burton Act’s statute of repose blocks claims more than two years old. Congress…
Continue ReadingIngrid (Wuerth) Brunk, Does Foreign Sovereign Immunity Apply to Sanctions on Central Banks?
Scott R. Anderson, What’s Happening with Afghanistan’s Assets?
Jamie L. Boucher, et al., The Potential Impact of Terrorism Lawsuits Under the Antiterrorism Act on Ordinary Corporate, Banking and Sovereign Enterprises