Material Support for Terrorism is Not Always an 'Act of International Terrorism,' Second Circuit Holds [March 5, 2018] [open pdf - 421KB]
"The U.S. Court of Appeals for the Second Circuit (Second Circuit) recently overturned a jury verdict deeming one of the largest financial institutions in the Middle East liable for providing financial services to Hamas and other designated foreign terrorist organizations. In 'Linde v. Arab Bank', PLC, American victims of terror attacks during the second Palestinian intifada were set to recover at least $100 million from Arab Bank under the civil liability provisions of the Antiterrorism Act (ATA). But the Second Circuit vacated the verdict, holding that the trial court incorrectly concluded that a violation of the federal law criminalizing material support to foreign terrorist organizations necessarily constitutes an 'act of international terrorism' subject to civil liability under the ATA. By holding that victims of terror attacks are not always entitled to recover civil damages even if they prove the defendant committed the crime of material support, 'Linde' highlights the legal complexities and obstacles that plaintiffs face when seeking civil damages under the ATA."
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