Lelchook et al v. Islamic Republic of Iran et al

Filing 180

ORDER ADOPTING REPORT AND RECOMMENDATIONS, The Court ADOPTS that part of Judge Mann's Report and Recommendation concerning the appropriate damages awards and DEFERS on ruling on that part of the Report and Recommendation to which Ester Lelchook objected. The Clerk of the Court is respectfully directed to enter judgment against BSPLC in the following amounts: an award of (trebled) economic damages in the amount of $899,958 to Ester Lelchook, acting as the legal representative of David L elchook's Estate; and (trebled) compensatory damages in the aggregate amount of $60,000,000, with $7,500,000 allocated to Alexander Lelchook, $15,000,000 allocated to the Estate of Doris Lelchook, and separate awards of $18,7 50,000 allocated to Michal and to Yael Lelchook, respectively. Plaintiff Ester Lelchook is directed to advise the Court when the Second Circuit renders its decision in Henkin so that the Court can be guided regarding her objection. So Ordered by Judge I. Leo Glasser on 2/17/2022. (fwd'd for jgm) (Lee, Tiffeny)

Clerk's Office
Case 1:16-cv-07078-ILG-RLM Document 180 Filed 02/18/22 Page 1 of 4 PageID #:Date:
File 3478

2/17/2022
U.S. DISTRICT
COURT-EDNY

UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF NEW YORK

ESTER LELCHOOK,individually and as
personal representative ofthe Estate of David
Martin Lelchook, MICHAL LELCHOOK,

MEMORANDUM AND ORDER

16-CV-07078(ILG)
(RLM)

YAEL LELCHOOK,ALEXANDER
LELCHOOK,and DORIS LELCHOOK,

Plaintiffs,

against THE ISLAMIC REPUBLIC OF IRAN,THE
CENTRAL BANK OF THE ISLAMIC

REPUBLIC OF IRAN (a/k/a Bank Markazi
Jomhouri Islami Iran), BANK SADERAT IRAN,
and BANK SADERAT,PLC,
Defendants.

GLASSER,Senior United States District Judge:

Plaintiffs Ester Lelchook, individually and as representative ofthe Estate ofDavid Martin

Lelchook, Michal Lelchook, Yael Lelchook, Alexander Lelchook, and Doris Lelchook'
(collectively,"Plaintiffs") brought claims pursuant to the Anti-Terrorism Act, 18 U.S.C. § 2331 et

seq.("ATA"), Israeli negligence laws, and Massachusetts tort law against defendants the Islamic
Republic ofIran,the Central Bank ofthe Islamic Republic ofIran, Bank Saderat Iran("BSI"), and
Bank Saderat, PLC ("BSPLC") (collectively, "Defendants").

Am. Compl. [ECF No. 81].

Following BSPLC's withdrawal of its counsel and failure to substitute new counsel, the Court

'Doris Lelchook, the mother of David Lelchook, died on December 5, 2018. On February 24,
2019, the Court substituted Alexander Lelchook, the Executor of Doris Lelchook's estate, a as
plaintiff.
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entered a defaultjudgment against it and referred the issue ofdamages to Magistrate Judge Mann.
See Lelchook v. Islamic Republic ofIran, 393 F. Supp. 3d 261 (E.D.N.Y. 2019).
In a thoroughly researched and well-reasoned Report and Recommendation,[ECF No.
177], Magistrate Judge Mann recommended

that plaintiffs' motion for a defaultjudgment be granted against BLSPC as follows:
an award of (trebled) economic damages in the amount of $899,958 to Ester
Lelchook, acting as the legal representative of David Lelchook's Estate; and
(trebled) compensatory damages in the aggregate amount of $60,000,000, with
$7,500,000 allocated to Alexander Lelchook, $15,000,000 allocated to the Estate
of Doris Lelchook, and separate awards of$18,750,000 allocated to Michal and to

Yael Lelchook,respectively. This Court further recommends that Ester Lelchook's
individual claim under the ATA be dismissed.

Lelchook V. Islamic Republic ofIran, No. 16-CV-7078(ILG)
(RLM),2020 WL 12656283, at *13
(E.D.N.Y. Nov. 23, 2020). Pursuant to Fed. R. Civ. P. 72(b)(2)-(3), plaintiff Ester Lelchook
objected to that part of Magistrate Judge Mann's Report and Recommendation denying her

individual ATA claims and asked this Court to find (1) that she is entitled to assert individual

claims under the ATA,and (2)that she is entitled to a judgment of$12.5 million on those claims
against BSPLC. [ECF No. 179]. Neither Ester Lelchook nor any of the other Plaintiffs or
Defendants objected to any other part of Judge Mann's Report and Recommendation.

For the following reasons, the Court ADOPTS IN PART and DEFERS IN PART Judge
Mann's Report and Recommendation.
STANDARD OF REVIEW

In reviewing a report and recommendation, a district court may "accept, reject, or modify,

in whole or in part, the findings or recommendations made by the magistrate judge." 28 U.S.C. §

636(b)(1). A district court reviews de novo "those portions ofthe report...to which [an]objection
is made," id, but"need only satisfy itselfthat there is no clear error on the face ofthe record" with

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respect to those portions of the report to which no objection is made. Fed. R. Civ. P. 72(1983
Advisory Committee Note).
ANALYSIS

The ATA creates a civil cause of action for "[a]ny national ofthe United States injured in
his or her person, property, or business by reason of an act of international terrorism, or his or her
estate, survivors, or heirs." 18 U.S.C. § 2333(a). Plaintiff Ester Lelchook's objection rests on the
question of whether "survivors" must be nationals ofthe United States in order to bring claims for
their own injuries. [ECF No. 179], at 3-13.

As Judge Mann notes in her Report and

Recommendation,there is a split ofauthority within the District on this question. Lelchook, 2020
WL 12656283, at *4 n.l. One of the decisions to which Judge Mann cites, and on which Ester

Lelchook heavily relies, is currently on appeal to the Second Circuit. Est. of Henkin v. Kuveyt
Turk Katilim Bankasi, A.S., 495 F. Supp. 3d 144, 147(E.D.N.Y. 2020), motion to certify appeal
granted. No. 19-CV-5394(BMC),2020 WL 6700121 (E.D.N.Y. Nov. 13,2020),appeal docketed.
No.21-513(2d Cir. Mar.4,2021). The Court will defer ruling on Ester Lelchook's objection until

the Second Circuit renders its opinion in Henkin.
With respect to those portions of Judge Mann's Report and Recommendation to which no
objection has been lodged, the Court has reviewed it and finds no clear error. It therefore adopts
her damages recommendations in full.
CONCLUSION

For the foregoing reasons, the Court ADOPTS that part of Judge Mann's Report and
Recommendation concerning the appropriate damages awards and DEFERS on ruling on that part

of the Report and Recommendation to which Ester Lelchook objected. The Clerk of the Court is
respectfully directed to enter judgment against BSPLC in the following amounts: an award of

Case 1:16-cv-07078-ILG-RLM Document 180 Filed 02/18/22 Page 4 of 4 PageID #: 3481

(trebled) economic damages in the amount of $899,958 to Ester Lelchook, acting as the legal

representative of David Lelchook's Estate; and (trebled) compensatory damages in the aggregate
amount of$60,000,000, with $7,500,000 allocated to Alexander Lelchook, $15,000,000 allocated

to the Estate of Doris Lelchook, and separate awards of $18,750,000 allocated to Michal and to
Yael Lelchook, respectively.
Plaintiff Ester Lelchook is directed to advise the Court when the Second Circuit renders its

decision in Henkin so that the Court can be guided regarding her objection.

SO ORDERED.
Dated:

Brooklyn, New York
February 17, 2022
/s/

I. Leo Glasser

Senior United States District Judge

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