I 
112TH CONGRESS 
2D SESSION 
H. R. 5796 
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 
MAY 17, 2012 
Mr. BRALEY of Iowa (for himself and Ms. ROS-LEHTINEN) introduced the fol-
lowing bill; which was referred to the Committee on the Judiciary, and 
in addition to the Committee on Foreign Affairs, for a period to be subse-
quently 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 pur-
poses. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Justice for the Amer-
ican Diplomats Held Hostage in Tehran Act’’. 
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SEC. 2. FINDINGS. 
Congress finds the following: 
(1) In 1979, agents of the Islamic Republic of 
Iran stormed the United States Embassy in Tehran, 
taking American military and diplomatic personnel 
hostage. 
(2) The Iranian Government then held United 
States Embassy personnel as hostages for 444 days, 
subjecting them to profound physical and mental 
abuse, and forcing the United States to negotiate 
their release, under duress. 
(3) In the resultant agreement (commonly 
known as the Algiers Accords) the United States 
agreed, among other steps, to bar and preclude the 
hostages from prosecuting any claim against Iran in 
United States courts. 
(4) The Algiers Accords were never submitted 
to Congress for ratification and none of the hostages 
or their family members was consulted by the 
United States Government or consented to these 
provisions precluding prosecution of their claims. 
(5) Notwithstanding the applicability of legal 
principles which allowed the United States to re-
nounce this obligation to bar and preclude the pros-
ecution of claims in United States courts because 
they were so clearly negotiated under duress, the 
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United States Government has repeatedly intervened 
in United States courts to preclude the prosecution 
of any claim by the hostages against Iran, arguing 
that, in its opinion, compliance with this agreement 
served overriding national security interests which 
justified the taking of the hostages’ right to pursue 
compensation from Iran in United States courts. 
(6) The United States Government has failed to 
propose any process by which the hostages and their 
family members could be compensated for the inju-
ries and damages suffered by them by reason of the 
horrific and heinous treatment while in captivity. 
(7) Congress has determined that the provision 
of compensation to the hostages and their families 
through, among other sources, funds obtained by 
vesting and liquidating property in which Iran and 
its surrogates claim an interest (including any funds 
held by the United States, including in trust) is fully 
consistent with the Algiers Accords. 
(8) Congress has determined that, only upon 
the payment of such compensation, should the agree-
ment by the United States Government to bar and 
preclude prosecution of such claims in United States 
courts be confirmed and ratified by legislation, not-
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withstanding the duress under which the United 
States originally negotiated that agreement. 
SEC. 3. JUSTICE FOR FORMER AMERICAN HOSTAGES IN 
IRAN. 
(a) COMMON FUND FOR HOSTAGES.—Not later than 
90 days after the date of the enactment of this Act, the 
Secretary of the Treasury, in consultation with the Sec-
retary of State, shall establish a common fund to be ad-
ministered by the class representatives and agents for the 
former American hostages in Iran and their survivors (as 
identified in case number 1:08–CV–00487 (EGS) of the 
United District Court for the District of Columbia). Such 
common fund shall— 
(1) be administered to pay claims to the Ameri-
cans 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 
(2) be administered for purposes of satisfying 
such claims, as approved by the class representatives 
and agents identified in that case number. 
(b) FUNDING.— 
(1) SOURCES.— 
(A) FINES AND PENALTIES.— 
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(i) IN GENERAL.—The President shall 
pay to the fund under subsection (a) an 
amount equal to 50 percent of all amounts 
collected as fines and penalties by reason 
of the application of clause (ii) on or after 
the date of enactment of this Act. The 
total amount of payments that may be 
made into the fund under this clause may 
not exceed the estimated total amount of 
payments to be made under subsection (d). 
(ii) FINES
AND
PENALTIES.—The 
maximum fines and penalties authorized to 
be imposed, in whole or in part, for viola-
tions of any conduct or activities with re-
spect to any government or person by rea-
son of their connection with or sponsorship 
by Iran are hereby increased by 100 per-
cent. 
(B) SEIZED
OR
FROZEN
ASSETS.—The 
President is authorized to pay to the fund 
under subsection (a)— 
(i) any funds or property in which 
Iran has an interest, and 
(ii) any funds or property in which 
any person or entity subject to any law 
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providing for sanctions against Iran by 
reason of such person’s or entity’s relation-
ship to or connection with Iran has an in-
terest, 
held by the United States (including in the 
form of a trust) or subject to any prohibition or 
regulation with respect to any financial trans-
actions in connection therewith. The President 
is authorized to vest and liquidate any property 
identified in this subparagraph in order to 
make payment as provided in this subpara-
graph. 
(2) TIMING OF FUNDING.—Payments of claims 
from the fund under subsection (a)— 
(A) using funds held by the United States 
or funds that become subject to prohibition or 
regulation as of the date of enactment of this 
Act shall be made not later than 60 days of the 
date of enactment of this Act; and 
(B) using funds which come into the pos-
session of the United States or funds that be-
come subject to prohibition or regulation after 
the date of enactment of this Act shall be paid 
not later 60 days after coming into the posses-
sion of the United States or funds that become 
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subject to prohibition or regulation, as the case 
may be. 
(3) SATISFACTION
OF
CLAIMS.—Payments to 
the fund under subsection (a) shall be made until 
the amounts described in subsection (d) are satisfied 
in full. If the President determines that the amounts 
can be fully satisfied within 1 year after the date of 
enactment of this Act from funds other than those 
held by the United States as trustee, the President 
may defer payment of funds held by the United 
States as trustee until one year after such date of 
enactment, but shall ensure during such 1-year pe-
riod of deferral that any such funds held by the 
United States as trustee shall not be disbursed, 
transferred or otherwise constrained for payment as 
otherwise may be required under this Act. 
(c) DISTRIBUTION OF FUNDS.— 
(1) IN
GENERAL.—Funds paid to the fund 
under subsection (b) shall be distributed by the class 
representatives and agents to the former American 
hostages in Iran and their survivors (as identified in 
case number 1:08–CV–00487 (EGS) of the United 
States District Court for the District of Columbia) 
in the amounts described in subsection (d). 
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(2) PRIORITY.—Subject to subsection (d), pay-
ments from funds paid to the fund under subsection 
(b) shall be distributed as follows: 
(A) First, to each living former hostage 
identified as a class member under subsection 
(a)(1). 
(B) Second, to the estate of each deceased 
former hostage identified as a class member 
under subsection (a)(1). 
(C) Third, to each spouse or child of a 
former hostage identified as a class member 
under subsection (a)(1) if the spouse or child is 
identified as a class member under subsection 
(a)(1). 
(d) AMOUNT OF PAYMENTS.—The amount of pay-
ments from funds paid to the fund under subsection (b) 
shall be distributed as follows: 
(1) For each former hostage described in sub-
section (c)(2)(A), $10,000 for each day of captivity 
of the former hostage. 
(2) For the estate of each deceased former hos-
tage described in subsection (c)(2)(B), $10,000 for 
each day of captivity of the former hostage. 
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(3) For each spouse or child of a former hos-
tage described in subsection (c)(2)(C), $5,000 for 
each day of captivity of the former hostage. 
(e) SUBROGATION.—The United States shall be fully 
subrogated, with respect to payments under this Act, to 
all rights of each individual paid under subsection (d) 
against the Government of Iran or the Iranian Revolu-
tionary Guard Corps or its affiliates or agents. The Presi-
dent shall pursue these subrogated rights as claims or off-
sets of the United States in appropriate ways until such 
subrogated claims have been resolved to the satisfaction 
of the United States. 
(f) PRECLUSION OF SUIT AND WAIVER OF CLAIMS.— 
Upon payment of all amounts described in subsection (d), 
each person receiving such payment shall be precluded 
from bringing suit against Iran of any claim arising out 
of events occurring between November 3, 1979, and Janu-
ary 20, 1981, and all such claims as against Iran shall 
be deemed waived and forever released. 
(g) REIMBURSEMENT OF SEIZED OR FROZEN AS-
SETS.—Upon payment of all amounts described in sub-
section (d), the President is authorized to make payments 
from amounts paid to the fund under subsection (b)(1)(A) 
to any person or entity described in subsection (b)(1)(B) 
for purposes of reimbursing such person or entity for 
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funds or property of such person or entity held by the 
United States as identified in subsection (b)(1)(B). 
(h) DEPOSIT OF FUNDS IN THE TREASURY.—Any 
amounts in the fund under subsection (a) which remain 
after the date on which payments of all amounts described 
in subsection (d) are made, or the date that is 2 years 
after the date of the enactment of this Act, whichever oc-
curs later, shall be deposited in the Treasury of the United 
States. 
Æ 
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