“U.S. Companies May Be on Hook for Libyan Terrorism”

It’s like magic, we’ll just make Big Business pay:

Washington, D.C., lawyer Thomas Fay has spent years hounding the Libyan government for money on behalf of victims of terrorist attacks. Now he’s hoping to collect — from American companies.

Fay has sent letters to 13 brand-name corporations, including Exxon Mobil and Chevron, notifying them that if he wins his case against Libya, he’ll be coming after them. He has even sent one to White & Case, the prominent law firm that recently signed on to defend Libya.

The gambit stems from a change in the law meant to make it easier for plaintiffs to secure judgments and collect from countries found responsible for sponsoring terrorist attacks. Until recently, those who had prevailed in court had few options for collecting.

But on Jan. 28, President George W. Bush signed a bill amending the Foreign Sovereign Immunities Act to allow plaintiffs to seek any asset owned by the terrorist-sponsoring country in reach of American courts, including frozen accounts or property managed by others. The amendment also permits victims to request punitive damages, which they couldn’t before, and eliminates some avenues for appeal. Under the new law, plaintiffs with pending cases had 60 days to file or refile claims.

Attorney Fay was among those lobbying for the new provision, which was sponsored by Sens. Frank Lautenberg (D-N.J.) and Arlen Specter (R-Pa.). (W.J. Hennigan, Legal Times, Apr. 15).

“U.S. Companies May Be on Hook for Libyan Terrorism” is a post from Overlawyered - Chronicling the high cost of our legal system