ARTICLE
2 March 2012

World Trade Centre Default Judgment - But enforcement may be difficult

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Barry Nilsson

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Barry Nilsson is an award-winning national law firm of more than 550 staff, with offices in all six states. Our Insurance & Health and Family Law, Wills & Estates practices combine extensive industry knowledge with local expertise to deliver trusted, practical advice. We partner with our clients, evolving our services to meet changing needs, while fostering a strong internal culture that supports our people and community. Our Insurance & Health team includes 250+ specialist insurance lawyers advising across all major lines of insurance and a broad range of industries. From policy drafting and claims management to legislative and regulatory advice, we work alongside insurance clients and stakeholders to tailor strategies designed to achieve the best outcomes. Our Family Law, Wills & Estates team provides a full range of family law and estate planning services for local, international, and expatriate clients. We combine expertise with empathy to deliver advice tailored to individual circumstances.
The US Federal Judge filed a controversial default judgment for terrorist attacks on the World Trade Centre in New York.
United States Government, Public Sector
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On 15 December 2011 Federal Judge George Daniels entered default judgment against Iran, the Taliban, Al-Qaeda and Hezbollah finding each liable for the September 11, 2001 terrorist attacks on the World Trade Centre in New York. The $100 billion law suit brought by family members of the victims of the attacks is now to be considered by a Magistrate Judge who will decide remaining issues, including the assessment of compensatory and punitive damages.

The judgment is a controversial one in that it attributes liability for the attack to Iran. An Iranian Government memorandum was lead as evidence of Iran's involvement. It purportedly showed that Supreme Leader Ayatollah Khamenei had prior knowledge of the attacks. The Iranian Government has repeatedly denied any connection with the World Trade Centre attacks.

Will insurers who have paid out hundreds of millions of dollars in compensation consider recovery claims against any or all of the named defendants? Collecting the money may be a problem.

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