Iran Resistant to Nuclear Deal Revival Without Clear Path Forward on Billions in US Terrorism Lawsuit Judgments

Reviving the 2015 Joint Comprehensive Plan of Action (JCPOA) requires addressing the billions of dollars’ worth of civil judgments by US victims of terrorism against Iran, experts warn. Failure to do so would disincentivize Iran from limiting or reversing its nuclear ambitions out of fear that it would never receive meaningful economic gains in return.

US Courts and Civil Judgments

US courts have awarded numerous billion-dollar judgments against Iran since the passage of the Antiterrorism and Effective Death Penalty Act of 1996. This law allows US victims of terrorist actions to sue governments on the State Department’s list of State Sponsors of Terrorism, leading to multiple lawsuits and corresponding civil judgment awards against Iran due to its support for terrorist activities.

Iran’s Skepticism

Iran is skeptical about receiving economic relief from the United States and its allies given that US unilateral economic sanctions remained in force after the 2015 JCPOA agreement. The country received only nominal sanctions relief, which was pared back when President Trump withdrew from the JCPOA in 2018.

Impact on Economic Relief

Holders of US civil judgment liens do not always succeed in acquiring targeted assets of defendants such as Iran. However, the existence of these liens may deter companies with legitimate concerns about their reputations or abilities to get paid. For example, an Iranian airline’s high-profile order to purchase Boeing passenger jets stalled due to concerns that judgment holders might attach liens on payments by Iranian entities to Boeing.

Diplomatic Agreements and Judgment Liens

Diplomatic agreements between the United States and Iran cannot erase or settle these judgment liens, which were awarded to individuals in US courts against Iran for its support of terrorist activities. Plaintiffs include injured military service members, families of dead service members, American families of innocent civilians killed or severely injured in Iranian-sponsored terrorist attacks.

A Path Forward

For the JCPOA or any new deal to succeed, the United States will need to articulate a path forward that addresses these outstanding claims. One possible solution could be for Iran to pay a percentage of energy royalties over the course of five or ten years after which it would come off the list of State Sponsors of Terrorism. This approach would establish a probationary period in which Iran’s commitment to the deal could be measured.

Special Master and Settlement

In this scenario, a special master appointed by a judge could settle the claims of victims and their families, providing partial closure for terrorism victims and incentivizing Iran to sustain a nuclear deal.

Conclusion

To revive the JCPOA or any new deal, the United States must address the outstanding civil judgments against Iran. A clear path forward is necessary to ensure that Iran receives meaningful economic relief in return for limiting or reversing its nuclear ambitions.