U.S. v. All Funds on Deposit with R.J. O’Brien & Associates

In action brought by govt. seeking civil forfeiture of funds held by defendant that belonged to Abu al Tayyeb, who was suspected of providing financial and military support for al Qaeda, Dist. Ct. erred in granting summary judgment to instant claimants-insurance companies that had paid over $2.5 billion in property damage claims arising out of September 11 attacks, where said claimants asserted that they were entitled to said funds under Terrorism Risk Insurance Act (TRIA). Although claimants had standing to sue for said funds, they were not entitled to said funds under TRIA since at time instant claim was filed by claimants, said funds were not “blocked” funds, but rather were subject to license issued by Office of Foreign Assets Control (OFAC), and thus were outside ambit of TRIA where, as here, govt. had been given authority to control said funds through instant civil forfeiture action. (Partial dissent filed.)