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Lloyd's Maritime Law Newsletter

Peterson and Others v Islamic Republic of Iran - US Court of Appeals (9th Circuit)(Betty B Fletcher, Sydney R Thomas and N Randy Smith Ct JJ) - 3 December 2010

Practice - Execution -Sovereign immunity -Plaintiffs obtaining default judgment against Iran -Plaintiffs seeking to enforce judgment against debts owed by French shipping company to Iranian state organisations - Whether sovereign immunity required to be pleaded by Iran as affirmative defence -Whether Iran's rights in respect of debts immune from execution

The plaintiffs were family members of deceased servicemen and survivors killed and injured in a terrorist attack in October 1983 when a truck drove into the US Marine barracks in Beirut and detonated explosives. The plaintiffs obtained a default judgment against Iran for US$2,656,944,877, the judge holding that Iran had “provided significant financial and logistical support to Hezbollah in connection with the Beirut bombing and was thus liable to the plaintiffs for compensatory damages”.

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