Anti-Terrorism Act Loses Some Teeth

In a significant setback for anti-terrorism litigation in the U.S., an appeals court on Wednesday reversed a $655.5 million verdict against the Palestine Liberation Organization and the Palestinian Authority. The ruling -- that the groups’ diplomatic missions in Washington and New York were not enough of a connection to give the U.S. courts jurisdiction -- will make it extremely difficult for other terror victims to sue international terrorist organizations, which typically lack official U.S. representation altogether.

The lawsuit was brought by 11 families of Americans killed in and around Jerusalem in 2002 and 2004, during the Al-Aqsa intifada. The federal law that authorized the suit is the Anti-Terrorism Act, which says that Americans injured by “international terrorism” may bring suit “in any appropriate district court” and recover treble damages and attorneys’ fees. A federal district court agreed to hear the case, and a jury awarded the families $218.5 million in damages, which tripled to $655.5 million.