With encouragement from both Congress and an active plaintiff’s bar, victims and survivors have been suing various foreign entities in U.S. courts charging complicity, sometimes indirect and roundabout, with participants in international terrorism. But a suit against Bank of China over a Palestinian Islamic Jihad attack suggests that “when it comes to battling global terror, civil suits by American citizens often do more harm than good.” Both the United States and Israel have reportedly negotiated with the Chinese institution to develop ways of combating illicit money transfers, but privately directed damages litigation tends to deter cooperation and perpetuate mistrust, and is hard to call off even when it has begun doing real harm to diplomacy. Even when lawsuits against some of the more obvious bad actors succeed, “the U.S. government has for years blocked financial judgments awarded to American plaintiffs against Iran and other foreign governments. Why? Such judgments are seen as conflicting with American foreign policy interests.” [James Loeffler and Moria Paz, Slate]
Earlier on lawsuits over terrorism: suing U.S. government over Kenya, Tanzania embassy bombings; Ted Frank 2007 essay; everybody “except the guys who did it“; Egyptian hotel forum-shopping; Tanzania gem smuggling; 9/11 suits and more.