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Supreme Court won't halt $656M judgment against PLO and Palestinian Authority

Created at 3 Aug · 8:46 PM2 sources↑ Market-relevant
IN SHORT

Supreme Court Justice Sonia Sotomayor declined to halt a $655.5 million judgment against the Palestine Liberation Organization and the Palestinian Authority. The ruling allows victims of attacks in Israel to pursue payment from the Palestinian entities.

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Key Numbers

$655.5 milliondamages ordered against Palestinian authorities
2002 to 2004period of attacks in Israel
2015year of initial judgment in New York federal court
2016year 2nd Circuit threw out verdict
2019year of Promoting Security and Justice for Victims of Terrorism Act

Who's Involved

Sonia Sotomayor
U.S. Supreme Court Justice who denied the request to halt the judgment
Palestine Liberation Organization
Palestinian entity ordered to pay damages
Palestinian Authority
Palestinian entity ordered to pay damages
Americans
Victims and families who filed the lawsuit
2nd U.S. Circuit Court of Appeals
Court that reinstated the judgment
Supreme Court won't halt $656M judgment against PLO and Palestinian Authority

↳ Why This Matters

The decision allows victims of terror attacks to pursue significant financial damages from Palestinian authorities, potentially impacting their ability to fund essential services and raising broader questions about accountability for acts of violence.

Key facts

  • Supreme Court Justice Sonia Sotomayor denied a request to halt a $655.5 million judgment against the PLO and Palestinian Authority.
  • The judgment is for victims of attacks in Israel between 2002 and 2004 that killed and injured Americans.
  • The Palestinian entities argued that enforcing the judgment would destabilize government services in the West Bank.
  • The lawsuit was brought under a federal law that allows claims against Palestinian authorities for acts of terror.
  • The 2nd U.S. Circuit Court of Appeals had previously reinstated the judgment.

U.S. Supreme Court Justice Sonia Sotomayor has declined to halt a $655.5 million judgment against the Palestine Liberation Organization (PLO) and the Palestinian Authority (PA). The ruling allows victims of attacks in Israel that killed and injured Americans between 2002 and 2004 to pursue payment from the Palestinian entities.

The Palestinian organizations had requested that the judgment be put on hold while they appeal a lower court's decision to revive the case. They argued that enforcing the judgment would cause severe financial harm and destabilize government services in the West Bank, potentially jeopardizing regional security. They stated that essential services are "hanging by a thread" and that plaintiffs intend to seek payment from indirect Palestinian tax revenue collected by Israel.

The lawsuit was initially filed in New York federal court in 2015, alleging responsibility for the attacks. The 2nd U.S. Circuit Court of Appeals dismissed the verdict in 2016, but Congress subsequently passed the Promoting Security and Justice for Victims of Terrorism Act in 2019, which facilitated lawsuits against Palestinian authorities. The Supreme Court upheld this law, leading the 2nd Circuit to reinstate the judgment in March.

Frequently asked questions

The lawsuit was brought by Americans killed or injured in attacks in Israel between 2002 and 2004, alleging responsibility by the Palestinian entities.

They argued that enforcing the judgment would cause severe financial harm, destabilize government services in the West Bank, and jeopardize regional security.

The Supreme Court upheld a federal law that allowed such claims and declined to hear an appeal in 2018, paving the way for the 2nd Circuit to reinstate the judgment after the law was passed.

This 2019 law facilitates lawsuits against Palestinian authorities by establishing consent to jurisdiction if they conduct certain activities in the U.S. or make payments to those who attack Americans.

What Happens Next

01The PLO and Palestinian Authority will continue their appeal of the reinstated verdict.

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Cadence

How It Developed

Supreme Court Justice Sonia Sotomayor refused to halt a $656M judgment against Palestinian authorities.
The Palestinian Authority and Palestine Liberation Organization requested a stay on the judgment while they appeal a lower court's decision.
The lawsuit concerns attacks that killed and injured Americans in Israel between 2002 and 2004.
The Supreme Court previously upheld a federal law allowing claims against Palestinian entities for such attacks.
The 2nd U.S. Circuit Court of Appeals reinstated the judgment in March.
The Palestinian organizations argued that enforcing the judgment would cause severe financial harm and destabilize government services in the West Bank.
Plaintiffs intend to seek payment from indirect Palestinian tax revenue collected by Israel.
The Palestinian authorities urged the Supreme Court to halt the payment, stating the judgment had become void.

Sources

T1
Supreme Court won’t halt $656M judgment against the PLO and Palestinian AuthorityAP News
T1
US Supreme Court won't halt $655 million judgment against Palestinians over attacksReuters

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