I 

113TH CONGRESS 

1ST SESSION H. R. 904 

To establish a common fund to pay claims to the Americans held hostage 

in Iran, and to members of their families, who are identified as class 

members in case number 1:08–CV–00487 (EGS) of the United States 

District Court for the District of Columbia, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 28, 2013 

Mr. BRALEY of Iowa (for himself and Ms. ROS-LEHTINEN) introduced the following bill; which was referred to the Committee on the Judiciary, and 

in addition to the Committee on Foreign Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such 

provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To establish a common fund to pay claims to the Americans 

held hostage in Iran, and to members of their families, 

who are identified as class members in case number 

1:08–CV–00487 (EGS) of the United States District 

Court for the District of Columbia, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Justice for the Amer5 ican Diplomats Held Hostage in Tehran Act’’. 


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1 SEC. 2. FINDINGS. 

2 Congress finds the following: 

3 (1) In 1979, agents of the Islamic Republic of 

4 Iran stormed the United States Embassy in Tehran, 

5 taking American military and diplomatic personnel 

6 hostage. 

7 (2) The Iranian Government then held United 

8 States Embassy personnel as hostages for 444 days, 

9 subjecting them to profound physical and mental 

10 abuse, and forcing the United States to negotiate 

11 their release, under duress. 

12 (3) In the resultant agreement (commonly 

13 known as the Algiers Accords) the United States 

14 agreed, among other steps, to bar and preclude the 

15 hostages from prosecuting any claim against Iran in 

16 United States courts. 

17 (4) The Algiers Accords were never submitted 

18 to Congress for ratification and none of the hostages 

19 or their family members was consulted by the 

20 United States Government or consented to these 

21 provisions precluding prosecution of their claims. 

22 (5) Notwithstanding the applicability of legal 

23 principles which allowed the United States to re24 nounce this obligation to bar and preclude the pros25 ecution of claims in United States courts because 

26 they were so clearly negotiated under duress, the 


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1 United States Government has repeatedly intervened 

2 in United States courts to preclude the prosecution 

3 of any claim by the hostages against Iran, arguing 

4 that, in its opinion, compliance with this agreement 

5 served overriding national security interests which 

6 justified the taking of the hostages’ right to pursue 

7 compensation from Iran in United States courts. 

8 (6) The United States Government has failed to 

9 propose any process by which the hostages and their 

10 family members could be compensated for the inju11 ries and damages suffered by them by reason of the 

12 horrific and heinous treatment while in captivity. 

13 (7) Congress has determined that the provision 

14 of compensation to the hostages and their families 

15 through, among other sources, funds obtained by 

16 vesting and liquidating property in which Iran and 

17 its surrogates claim an interest (including any funds 

18 held by the United States, including in trust) is fully 

19 consistent with the Algiers Accords. 

20 (8) Congress has determined that, only upon 

21 the payment of such compensation, should the agree22 ment by the United States Government to bar and 

23 preclude prosecution of such claims in United States 

24 courts be confirmed and ratified by legislation, notVerDate Mar 15 2010 03:06 Mar 02, 2013 Jkt 029200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H904.IH H904

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1 withstanding the duress under which the United 

2 States originally negotiated that agreement. 

3 SEC. 3. JUSTICE FOR FORMER AMERICAN HOSTAGES IN 

4 IRAN. 

5 (a) COMMON FUND FOR HOSTAGES.—Not later than 

6 90 days after the date of the enactment of this Act, the 

7 Secretary of the Treasury, in consultation with the Sec8 retary of State, shall establish a common fund to be ad9 ministered by the class representatives and agents for the 

10 former American hostages in Iran and their survivors (as 

11 identified in case number 1:08–CV–00487 (EGS) of the 

12 United District Court for the District of Columbia). Such 

13 common fund shall— 

14 (1) be administered to pay claims to the Ameri15 cans held hostage in Iran, and to members of their 

16 families, who are identified as class members in case 

17 number 1:08–CV–00487 (EGS) of the United States 

18 District Court for the District of Columbia; and 

19 (2) be administered for purposes of satisfying 

20 such claims, as approved by the class representatives 

21 and agents identified in that case number. 

22 (b) FUNDING.— 

23 (1) SOURCES.— 

24 (A) FINES AND PENALTIES.— 


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1 (i) IN GENERAL.—The President shall 

2 pay to the fund under subsection (a) an 

3 amount equal to 50 percent of all amounts 

4 collected as fines and penalties by reason 

5 of the application of clause (ii) on or after 

6 the date of enactment of this Act. The 

7 total amount of payments that may be 

8 made into the fund under this clause may 

9 not exceed the estimated total amount of 

10 payments to be made under subsection (d). 

11 (ii) FINES AND PENALTIES.—The 

12 maximum fines and penalties authorized to 

13 be imposed, in whole or in part, for viola14 tions of any conduct or activities with re15 spect to any government or person by rea16 son of their connection with or sponsorship 

17 by Iran are hereby increased by 100 per18 cent. 

19 (B) SEIZED OR FROZEN ASSETS.—The 

20 President is authorized to pay to the fund 

21 under subsection (a)— 

22 (i) any funds or property in which 

23 Iran has an interest, and 

24 (ii) any funds or property in which 

25 any person or entity subject to any law 


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1 providing for sanctions against Iran by 

2 reason of such person’s or entity’s relation3 ship to or connection with Iran has an in4 terest, 

5 held by the United States (including in the 

6 form of a trust) or subject to any prohibition or 

7 regulation with respect to any financial trans8 actions in connection therewith. The President 

9 is authorized to vest and liquidate any property 

10 identified in this subparagraph in order to 

11 make payment as provided in this subpara12 graph. 

13 (2) TIMING OF FUNDING.—Payments of claims 

14 from the fund under subsection (a)— 

15 (A) using funds held by the United States 

16 or funds that become subject to prohibition or 

17 regulation as of the date of enactment of this 

18 Act shall be made not later than 60 days of the 

19 date of enactment of this Act; and 

20 (B) using funds which come into the pos21 session of the United States or funds that be22 come subject to prohibition or regulation after 

23 the date of enactment of this Act shall be paid 

24 not later than 60 days after coming into the 

25 possession of the United States or funds that 


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1 become subject to prohibition or regulation, as 

2 the case may be. 

3 (3) SATISFACTION OF CLAIMS.—Payments to 

4 the fund under subsection (a) shall be made until 

5 the amounts described in subsection (d) are satisfied 

6 in full. If the President determines that the amounts 

7 can be fully satisfied within 1 year after the date of 

8 enactment of this Act from funds other than those 

9 held by the United States as trustee, the President 

10 may defer payment of funds held by the United 

11 States as trustee until one year after such date of 

12 enactment, but shall ensure during such 1-year pe13 riod of deferral that any such funds held by the 

14 United States as trustee shall not be disbursed, 

15 transferred or otherwise constrained for payment as 

16 otherwise may be required under this Act. 

17 (c) DISTRIBUTION OF FUNDS.— 

18 (1) IN GENERAL.—Funds paid to the fund 

19 under subsection (b) shall be distributed by the class 

20 representatives and agents to the former American 

21 hostages in Iran and their survivors (as identified in 

22 case number 1:08–CV–00487 (EGS) of the United 

23 States District Court for the District of Columbia) 

24 in the amounts described in subsection (d). 


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1 (2) PRIORITY.—Subject to subsection (d), pay2 ments from funds paid to the fund under subsection 

3 (b) shall be distributed as follows: 

4 (A) First, to each living former hostage 

5 identified as a class member under subsection 

6 (a)(1). 

7 (B) Second, to the estate of each deceased 

8 former hostage identified as a class member 

9 under subsection (a)(1). 

10 (C) Third, to each spouse or child of a 

11 former hostage identified as a class member 

12 under subsection (a)(1) if the spouse or child is 

13 identified as a class member under subsection 

14 (a)(1). 

15 (d) AMOUNT OF PAYMENTS.—The amount of pay16 ments from funds paid to the fund under subsection (b) 

17 shall be distributed as follows: 

18 (1) For each former hostage described in sub19 section (c)(2)(A), $10,000 for each day of captivity 

20 of the former hostage. 

21 (2) For the estate of each deceased former hos22 tage described in subsection (c)(2)(B), $10,000 for 

23 each day of captivity of the former hostage. 


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1 (3) For each spouse or child of a former hos2 tage described in subsection (c)(2)(C), $5,000 for 

3 each day of captivity of the former hostage. 

4 (e) SUBROGATION.—The United States shall be fully 

5 subrogated, with respect to payments under this Act, to 

6 all rights of each individual paid under subsection (d) 

7 against the Government of Iran or the Iranian Revolu8 tionary Guard Corps or its affiliates or agents. The Presi9 dent shall pursue these subrogated rights as claims or off10 sets of the United States in appropriate ways until such 

11 subrogated claims have been resolved to the satisfaction 

12 of the United States. 

13 (f) PRECLUSION OF SUIT AND WAIVER OF CLAIMS.— 

14 Upon payment of all amounts described in subsection (d), 

15 each person receiving such payment shall be precluded 

16 from bringing suit against Iran of any claim arising out 

17 of events occurring between November 3, 1979, and Janu18 ary 20, 1981, and all such claims as against Iran shall 

19 be deemed waived and forever released. 

20 (g) REIMBURSEMENT OF SEIZED OR FROZEN AS21 SETS.—Upon payment of all amounts described in sub22 section (d), the President is authorized to make payments 

23 from amounts paid to the fund under subsection (b)(1)(A) 

24 to any person or entity described in subsection (b)(1)(B) 

25 for purposes of reimbursing such person or entity for 


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1 funds or property of such person or entity held by the 

2 United States as identified in subsection (b)(1)(B). 

3 (h) DEPOSIT OF FUNDS IN THE TREASURY.—Any 

4 amounts in the fund under subsection (a) which remain 

5 after the date on which payments of all amounts described 

6 in subsection (d) are made, or the date that is 2 years 

7 after the date of the enactment of this Act, whichever oc8 curs later, shall be deposited in the Treasury of the United 

9 States. 

Æ 


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