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IN RE TERRORIST ATTACKS ON SEPTEMBER 11, 2001
793
Cite as 349 F.Supp.2d_ 765 (S.D.N.Y. 2005)
The commercial character of an activity
shall be determined by reference to the
nature of the course of conduct or particu-
lar transaction or act, rather than by refer-
ence to its purpose.” 28 U.S.C. § 1608(d).
The Supreme Court has explained, “when
a foreign government acts, not as a regu-
lator of the market, but in the manner of a
private player within it, the foreign sover-
eign’s actions are ‘commercial’ within the
meaning of the FSIA.” Weltover, 504 U.S.
at 614, 112 S.Ct. 2160. Courts must in-
quire whether the foreign state’s actions
“are the type of actions by which a private
party engages in trade and traffic or com-
merce.” Jd. Gnternal citations omitted).
[15] Judge Robertson determined that
the commercial activity exception did not
apply to the Burnett Plaintiffs’ claims
against Prince Sultan and Prince Turki
because “the act of contributing to a foun-
dation is not within our ordinary under-
standing of ‘trade and traffic or commerce’
nor, apparently was it within the contem-
plation of ... Congress.” Burnett I, 292
F.Supp.2d at 18 (citing H.R.Rep. No. 94-
1487, at 16, reprinted im 1976
U.S.C.C.A.N. at 6615). Thus, the consoli-
dated Plaintiffs do not assert that the com-
mercial activities exception is applicable to
any of the Defendants raising FSIA de-
fenses here. This Court adopts Judge
Robertson’s reasoning. To the extent any
Plaintiffs’ claims are based on a Defen-
dant’s contributions to charities, those acts
cannot be considered commercial.
[16,17] The Federal Plaintiffs allege
that the Kingdom of Saudi Arabia, Prince
Sultan, and Prince Turki financed terror-
ism by contributing to or supporting chari-
ties known to support terrorist activities.
In these Plaintiffs’ view, this is essentially
money laundering and, therefore, a com-
mercial activity. See, eg., Federal Plain-
tiffs’ Opp. to Motion to Dismiss of Prince
Sultan at 18 (citing U.S. v. Goodwin, 141
F.3d 394, 399 (2d Cir.1997)). The Second
Circuit noted in Goodwin that “[mloney
laundering is a quintessential economic ac-
tivity,’ 141 F.3d at 399, but that statement
has no bearing here. In Goodwin the
court was not deciding whether money
laundering is a commercial activity for
purposes of the FSIA. /d. (analyzing con-
stitutionality of criminal money laundering
statute). The Second Circuit has made
very clear that, for purposes of the FSIA,
a commercial activity must be one in which
a private person can engage lawfully.
Letelier v. Republic of Chile, 748 F.2d 790,
797-98 (2d Cir.1984); see also Saudi Ara-
bia v. Nelson, 507 U.S. 349, 360-62, 113
S.Ct. 1471, 123 L.Ed.2d 47 (1993) (holding
detaining and torturing plaintiff is not
commercial activity since it “is not the sort
of action by which private parties can en-
gage in commerce”). Since money laun-
dering is an illegal activity, see 18 U.S.C.
§ 1956 (criminalizing money laundering), it
cannot be the basis for applicability of the
commercial activities exception. See Lete-
hier, 748 F.2d at 798 (holding alleged par-
ticipation in an assassination is not a lawful
activity and therefore not a commercial
activity for purposes of the FSIA). Ac-
cordingly, the Court finds that the com-
mercial activities exception outlined in
§ 1605(a)(2) is inapplicable to the allega-
tions contained in the Federal complaint
against the Kingdom of Saudi Arabia,
Prince Sultan, and Prince Turki.
2. State Sponsor of Terrorism
[18] Subsection (a)(7) lifts immunity in
cases:
in which money damages are sought
against a foreign state for personal inju-
ry or death that was caused by an act of
torture, extrajudicial killing, aircraft
sabotage, hostage taking, or the provi-
sion of material support or resources
... for such an act ... except that the
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| Filename | HOUSE_OVERSIGHT_017858.jpg |
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| OCR Confidence | 85.0% |
| Has Readable Text | Yes |
| Text Length | 3,847 characters |
| Indexed | 2026-02-04T16:33:15.195413 |