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Extracted Text (OCR)
In re Terrorist Attacks on September 11, 2001, 392 F.Supp.2d 539 (2005)
10 A.L.R. Fed. 2d 789
Dr. Al-Nafissa states that private charities in the
Kingdom of Saudi Arabia receive governmental approval
through Royal Order, are run by boards, and disburse
*552 funds in accordance with their charters. (Al—-Nafissa
Decl. § 5.) In contrast, governmental commissions, such
as SHC, are chaired by a governmental official, like
Prince Salman, and conduct their affairs in accordance
with the Kingdom’s policy objectives. Ud. § 5.)
According to Dr. Al-Nafissa, “[d]ecisions regarding
causes to support and recipients for Saudi High
Commission funds are within the discretion of the
Executive Committee, the Supreme Commission, and
Prince Salman.” (/d. § 8.) The Kingdom of Saudi Arabia
is SHC’s largest source of funding, having provided
approximately 30% of the funds used and distributed by
SHC. (Al-Roshood Decl. § 24.) The remainder of SHC
funds are collected through fundraisers “in accordance
with the directives of ... King Fahd.” Ud. 9 5.) SHC can be
sued for its administrative acts in the Board of
Grievances. (Al-Nafissa Decl. § 8.)
In their complaint, the Federal Plaintiffs alleged that SHC
is “an agency, instrumentality and organ of the Kingdom
of Saudi Arabia.” (Federal Compl. § 181.) They now
back away from that allegation and join other Plaintiffs in
disputing SHC’s status. Plaintiffs submit that SHC has
repeatedly and systematically described itself as a
non-governmental organization in representations to the
Bosnian government. (See Plaintiffs’ Mem. in Opp’n to
SHC Mot. to Dismiss at 10.) Thus, even if SHC is
considered a foreign state, Plaintiffs assert it has
implicitly watved its immunity through those
representations. See 28 U.S.C. § 1605(a)(1) (FSIA waiver
provision). Plaintiffs also argue that it is disingenuous for
SHC to simultaneously maintain that it is an organ of the
Kingdom and that this Court lacks personal jurisdiction
over it when the Kingdom itself did not dispute the
personal jurisdiction issue.
In response to Plaintiffs’ arguments that it described itself
as a non-governmental organization to Bosnian
authorities, SHC submits the declaration of
Hadsimuratovic Hajrudin, a Bosnian lawyer who serves
as a legal advisor to SHC. (See generally Hajrudin Decl.
at SHC Reply Ex. A.) Mr. Hajrudin states that SHC
characterized itself as non-governmental in accordance
with Article 22 of the Law on Humanitarian Activities
and Humanitarian Organizations of the Federation of
Bosnia and Herzegovina because SHC is “not considered
part of the government of Bosnia—Herzegovina.” (/d. § 4.)
Mr. Hajrudin attests that the head of SHC’s European
Office received diplomatic status in Bosnia—Herzegovina
in 1996 because SHC is an organization of the Saudi
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government. (/d. J 6.) He also states that the Kingdom of
Saudi Arabia is represented by SHC when it makes
donations to Bosnia—Herzegovina. (/d.)
(61 There is no dispute that SHC is a separate legal person
from the Kingdom and not a citizen of the United States
or any third country. See 28 U.S.C. § 1603. Accordingly,
the only dispute regarding SHC’s status is whether it is an
organ of the Kingdom. In Filler v. Hanvit Bank, 378 F.3d
213 (2d Cir.2004), the Second Circuit considered various
factors to determine whether an entity could be
considered an organ of a foreign sovereign. Jd. at 217.
The factors include:
(1) whether the foreign state
created the entity for a national
purpose; (2) whether the foreign
state actively supervises the entity;
(3) whether the foreign state
requires the hiring of public
employees and pays their salaries;
(4) whether the entity holds
exclusive rights to some right in the
[foreign] country; and (5) how the
entity is treated under foreign state
law.
Id. at 217 (citations omitted).
SHC offers undisputed evidence that it was created by the
Kingdom’s Council of *553 Ministers to “centralize all
charitable giving from the Kingdom to
Bosnia—Herzegovina [and that it was] vested with the sole
authority to collect and distribute charitable funds in
Bosnia.” (Al-Roshood Decl. [J 5—6; Hajrudin Decl. 96 &
Ex. D (noting the Kingdom of Saudi Arabia provides
humanitarian relief to Bosnia through SHC).) The Council
of Ministers appointed Prince Salman to supervise SHC.
(Al Roshood Decl. 9§ 7-9.) The salaries of SHC
employees are paid by either the Kingdom of Saudi
Arabia or out of the SHC budget. Ud. § 10.) Like other
Saudi Arabian government agencies, SHC can be sued in
the administrative court of the Kingdom. (Al-—Nafissa
Decl. § 8.)
The Court finds that SHC has made a prima facie showing
that it is a foreign sovereign. See Cargill, 991 F.2d at
1016 (requiring defendant to make prima facie case of
sovereignty). Because SHC was formed by order of the
Kingdom’s governing body, it provides the Kingdom’s
aid to Bosnia, it is governed by a Saudi official and its
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Extracted Information
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Document Details
| Filename | HOUSE_OVERSIGHT_017917.jpg |
| File Size | 0.0 KB |
| OCR Confidence | 85.0% |
| Has Readable Text | Yes |
| Text Length | 4,940 characters |
| Indexed | 2026-02-04T16:33:29.149418 |