CRS Report for Congress: Suits Against Terrorist States by Victims of Terrorism: July 31, 2008 - RL31258

In 1996 Congress amended the Foreign Sovereign Immunities Act (FSIA) to allow U.S. victims of terrorism to sue designated State sponsors of terrorism for their terrorist acts. The courts have handed down large judgments against the terrorist State defendants, generally in default, and successive Administrations have intervened to block the judicial attachment of frozen assets to satisfy judgments. After a court ruled that Congress never created a cause of action against terrorist States themselves, but only against their officials, employees, and agents, plaintiffs have based claims on state law. The limited availability of defendant States' assets for satisfaction of judgments has made collection difficult. Congress passed a rider to the National Defense Authorization Act for FY2008 (H.R. 4986), to provide a federal cause of action against terrorist States and to facilitate enforcement of judgments, authorizing the President to waive the provision with respect to Iraq. The President issued a waiver and now seeks a waiver for Libya and other States whose designation may be lifted, which is soon likely to include North Korea. The measure, ? 1083 of P.L. 110-181, is the latest in a series of actions Congress has taken over the last decade to assist plaintiffs in lawsuits ...