The Iranian Artefacts Dispute

Author:Mr Roland Foord and Charlotte Welsh
Profession:Stephenson Harwood

The US Supreme Court has agreed to hear a case involving the long running dispute involving the seizure of Iranian artefacts.

In 1997, American citizens were the victims of a terror attack in Israel when three suicide bombers from the Palestinian extremist organisation, Hamas, blew themselves up. A number of US citizens and their families sued Iran (on the basis of claims that Hamas was financed by Iran). A default judgment of US$71 million was made against Iran by the federal district court of Washington D.C.

The challenge was to enforce the judgment. The victims registered the judgment in Illinois for the purpose of attaching Iranian artefacts housed in the University of Chicago's Oriental Institute and the Field Museum. The plaintiffs identified three specific collections; the Persepolis and Chogha Mish Collections at the Oriental Institute and the Herzfeld Collection at the Field Museum. Some of the items in the Persepolis Collection include around 30,000 clay tablets and fragments of some of the oldest writings in the world, which were loaned to the Oriental Institute in 1937 for research, translation and cataloguing.

The plaintiffs' argument was that these artefacts are subject to attachment under the US Foreign Sovereign Immunities Act (FSIA), a law which restricts when foreign entities can be sued in US courts. The plaintiffs relied on two provisions in the FSIA:

(i) the artefacts are used for a commercial purpose and so do not benefit from attachment immunity (section 1610); and  (ii) the "blocked assets" provision under the Terrorism Risk Insurance Act 2002 which provides that the blocked assets of a terrorist organisation (including those of any agency or instrumentality of that terrorist party) are subject to execution to satisfy a judgment obtained under the FSIA's terrorism exception. The museums...

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