Ministry of Defense v. Frym

Judgments consummated after the Algiers Accord are not in violation of the Accord and are permitted to be attached.

Ten American citizens attempted to collect on valid judgments against Iran for injuries arising out of terrorism sponsored by Iran. The citizens seek to attach a $2.8 million dollar judgment that the ministry of defense of Iran (Ministry) obtained in arbitration with Cubic Defense System, Inc. (Cubic). The district court granted the citizens motion to attach Cubic’s judgment. On appeal, the Ninth Circuit held that the United States does not violate its obligations under Algiers Accords by permitting the attachment of the Cubic judgment. The panel reasoned that under Elahi, Iran did not have an interest in the Cubic judgment or in the property until after the Algiers Accords came into effect. Because of those reasons the United States did not violate its obligations under the Algiers Accords. Further, the panel reasoned that the Cubic Judgment is a black asset pursuant to Executive Order No. 13539. The panel found that the Cubic Judgment does not fit under any exception of the executive order. AFFIRMED.