NEWS
Victims Can Hold Palestine Bank Responsible for Terror Finance
by De'ah Vedibur Staff
On June 16 the United States Court of Appeals for the Second Circuit ruled in favor of the families of Palestinian terror victims holding an Israel bank responsible for financing terror. Agudath Israel of America filed a supporting brief in the case.
The case, Spetner v. Palestine Investment Bank, was brought by American citizens whose family members were injured or killed in terrorist attacks during the Second Intifadah. The plaintiffs sued the Palestinian Investment Bank ("PIB") which was used by terrorist organizations to encourage attacks against Israelis by providing financial assistance to families of suicide bombers and other terrorists.
The federal district court ruled that the court did not have jurisdiction to allow the lawsuit to proceed because the PIB used other banks as intermediaries to distribute money to families of terrorists.
The case was appealed to the U.S. Court of Appeals for the Second Circuit. Agudath Israel submitted an amicus curiae "friend of the court" brief in support of the families of the victims. The brief argued that banks that use secondary financial institutions as intermediaries to finance terrorist activities should not avoid liability for financing terrorism.
The amicus brief was researched and written by Douglas Mitchell and Scott Whitman of the law firm Jenner & Block, which agreed to produce the brief pro bono for Agudath Israel. (Mr. Whitman is currently with the firm Haynes Boone.) Other organizations joining the brief were the Orthodox Union, StandWithUs, and the One Israel Fund.
In its June 16 ruling, the Second Circuit ruled that PIB could be held responsible for facilitating the attacks. They wrote, "[B]y processing payments bearing indicia of terrorism financing on behalf of Arab Liberation Front and knowingly providing material support to a customer linked to Hamas, a designated Foreign Terrorist Organization, PIB facilitated the attacks that are at the heart of this litigation."
Daniel Kaminetsky, Esq, General Counsel of Agudath Israel, expressed satisfaction with the ruling. "We are gratified by the Second Circuit's ruling, which enables the families of terror victims to pursue justice. While financial compensation cannot reverse the harm done, it is imperative that institutions who fund terrorist activity are held accountable under law."
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