Ontario court upholds $1.7B judgment against Iran, ruling in favour of American victims of terrorism

"Ontario's Court of Appeal upheld a US$1.7-billion judgment against the government of Iran in favour of American victims of terrorism, rejecting the state's immunity and accusing Tehran of trying to derail Canada's Justice for Victims of Terrorism Act.

The appeal court's resounding rejection of Iran's appeal is another victory for victims of terrorism holding Iran accountable for its support of Hamas and Hezbollah during terror campaigns from the 1980s through to 2002.

'The terrorist attacks out of which the respondents' U.S. judgments arise are repugnant to civilized society. The fact that a foreign government would engage in the sponsorship of such atrocities is chilling,' wrote Justice Justice C. William Hourigan, on behalf of a panel of concurring judges.

'There is nothing offensive about using peaceful legislative means to combat terrorism,' the judgment says. 'To the contrary, awarding damages that may have a deterrent effect is a sensible and measured response to the state sponsorship of terrorism and is entirely consistent with Canadian legal morals.'

The unusual case sees a long list of American victims of terrorism suing Iran in Canada to recover massive U.S. court awards.

The victims - some of whom were personally injured, kidnapped or tortured and others the families of those killed in terror attacks - sued Iran in the United States for arming, training and bankrolling Hamas and Hezbollah...

The terror victims earlier won their various cases in the United States and were awarded significant financial judgments, including substantial punitive damages that amount to about US$1.7 billion.

With few Iranian government assets remaining in the United States, the victims turned to Canada, where Tehran maintained property and bank accounts.

Canada's Justice for Victims of Terrorism Act (JVTA), enacted in 2012, allowed victims of terrorism to sue terrorists and foreign states for damages. It is that act that allows the U.S. victims to seek Iran's money in Canada..."