A bill to amend the Justice for United States Victims of State Sponsored Terrorism Act to provide rules for payments to Havlish Settling Judgment Creditors.
This bill would amend the Justice for United States Victims of State Sponsored Terrorism Act (JSTSA) to grant special treatment to Havlish Settling Judgment Creditors. Specifically, it creates an explicit exception that shields Havlish creditors from certain existing JSTSA payment restrictions, requires that funds held in escrow for these creditors be released and paid, and ensures Havlish creditors can participate in future rounds of payments just like other JSTSA claimants. It also provides a precise legal definition of who qualifies as a Havlish Settling Judgment Creditor and makes these changes retroactive to December 29, 2022. In short, the bill aims to finalize and accelerate the financial treatment of Havlish creditors within the JSTSA framework, while preserving their eligibility for ongoing distributions alongside other victims’ claimants.
Key Points
- 1Creates an exception for Havlish Settling Judgment Creditors from certain JSTSA payment restrictions, with two carve-outs: (aa) if the creditor already elected to participate in the Fund or filed for conditional payment, and (bb) for assets or net proceeds attributable to a person described in (aa).
- 2Requires all funds that were allocated to a Havlish creditor and held in escrow (and withheld from distribution) to be released and paid to the specific Havlish creditor to whom they were allocated.
- 3Ensures Havlish creditors remain eligible to participate in future JSTSA payment rounds in the same manner as other claimants described in JSTSA’s subsections governing payment distributions.
- 4Defines “Havlish Settling Judgment Creditor” as a plaintiff, estate, or successor in interest with an eligible 9/11-related claim identified in the 2014 SDNY Order in In re 650 Fifth Avenue and Related Properties (No. 08-CV-10934).
- 5Backdates the amendments to take effect as if enacted on December 29, 2022.