Document: 453 U.S. 654 101 S.Ct. 2972 69 L.Ed.2d 918 DAMES & MOORE, Petitioner,v.Donald T. REGAN, Secretary of the Treasury, et al. No. 80-2078. Argued June 24, 1981. Decided July 2, Syllabus In response to seizure American personnel as hostages at Embassy in Tehran, Iran, President Carter, pursuant International Emergency Economic Powers Act (IEEPA), declared a national emergency on November 14, 1979, and blocked removal or transfer all property interests Government Iran which were subject jurisdiction United States. The Treasury Department then issued implementing regulations providing that "[u]nless licensed authorized . any attachment, judgment, decree, lien, execution, garnishment, other judicial process is null void with respect since [November 1979,] there existed an interest Iran; " licenses authorizations granted could be "amended, modified, revoked time." general license certain proceedings, including prejudgment attachments, against but did not allow entry judgment decree. On December 19, petitioner filed suit Federal District Court Atomic Energy Organization number Iranian banks, alleging it was owed amount money for services performed under contract Organization. orders attachment defendants' property, banks attached secure might entered them. Subsequently, January 1981, Americans held hostage released by agreement Under this States obligated terminate legal proceedings courts involving claims nationals nullify attachments judgments obtained therein, bring about termination such through binding arbitration Iran-United Claims Tribunal. same time Executive Orders revoking permitted exercise "any right, power, privilege" regard funds, nullifying non-Iranian assets acquired after blocking order requiring holding them Reserve Bank New York transferred directed Treasury. February Reagan Order ratified Carter's "suspended" may presented Tribunal, provided suspension claim terminates if Tribunal determines has no over claim. Meanwhile, summary awarded claimed plus interest, stayed execution pending appeal defendants, ordered defendants vacated further bank stayed. Petitioner action seeking prevent enforcement various Iran. It alleged actions beyond their statutory constitutional powers, event, unconstitutional extent they adversely affect petitioner's final Organization, its ability continue litigate banks. dismissed complaint failure state upon relief granted, injunction Appeals prohibiting from writ court favor. This certiorari before judgment. Held: 1. provision IEEPA, 50 U.S.C. § 1702(a)(1)(B), empowers "compel," "nullify," "prohibit" "transfer" to, transactions involving, States, foreign country interest. Pp. 669-674. (a) Nothing legislative history either 1702 5(b) Trading With Enemy (TWEA), directly drawn, requires reading out meaning words "transfer," limiting President's authority case only continuing freeze, claims. To contrary, both cases interpreting TWEA fully sustain broad when acting congressional grant power. And changes brought enactment IEEPA way take specific taken here. By instant action, had already freeze order, proceeded revocable authorizing attachments. petitioner, being revocation, specifically made subordinate IEEPA. 671-673. (b) Blocking orders, one here, permit maintain his disposal use negotiating resolution emergency, frozen serve "bargaining chip" used dealing hostile country. limit authority, urges, would mean claimants minimize eliminate similar encumbrances. 673-674. (c) Petitioner's conditional ordering effect taking violation Fifth Amendment absent just compensation. P. 674, n. 6. (d) Because authorization, "supported strongest presumptions widest latitude interpretation, burden persuasion rest heavily who attack it." Youngstown Sheet Tube Co. v. Sawyer, 343 579, 637, 72 863, 871, 96 L.Ed. 1153 (Jackson, J., concurring). circumstances case, sustained burden. 674. 1 2. basis inferences drawn character legislation, Hostage Act, Congress enacted area deal international crises, acquiescence executive settlement, suspend question 675-688. 2 Although neither nor constitutes authorization claims, these statutes are highly relevant indication acceptance scope those case. 675-679. 3 repeatedly exercised sovereign settle countries. settlements have sometimes been treaty, also longstanding practice settling without advice consent Senate, continues present time. 679-680. 4 That implicitly approved settlement best demonstrated Congress' Settlement 1949, created Commission, now Foreign gave make decisions funds. reveals accepted enter into agreements. 680-682. 5 addition power prior recognized some measure agreements obtaining Senate. See, e. g., Pink, 315 203, 62 552, 86 796. 682-683. 6 (e) argument 1952 adhered doctrine absolute immunity should discounted because evolution immunity, refuted fact least 10 agreement. Thus, even pre-1952 disregarded, supports act 683-684. 7 (f) enacting Sovereign Immunities 1976 (FSIA), personal subject-matter federal district commercial suits states waived divest President, suspending claim, circumscribed Art. III, simply effected change substantive law governing lawsuit. FSIA designed remove particular barrier suit, namely, cannot read governments. 684-686. 8 (g) Long continued practice, known acquiesced Congress, raises presumption consent. Such here appropriate. 686. 9 (h) conclusion exceed powers buttressed alternative forum, nationals. Moreover, disapproved 686-688. (i) While concluded plenary governmental entities, nevertheless, where, determined necessary incident major policy dispute between another, said lacks 688. 11 3. possibility absence compensation, makes ripe adjudication whether will remedy Claims. jurisdictional obstacle appropriate Tucker Act. 688-690. 12 Affirmed. 13 C. Stephen Howard, Tuttle Taylor, Inc., Los Angeles, Cal., petitioner. 14 Rex E. Lee, Special Atty., Dept. Justice, Washington, D. C., respondents. 15 Thomas Shack, Jr., Abourezk, Shack Mendenhall, Islamic Republic 16 Eric M. Lieberman, City, Markazi 17 Justice REHNQUIST delivered opinion Court. 18 questions touch fundamentally matter our governed. Throughout nearly two centuries Nation's existence Constitution, generated considerable debate. We benefit commentators John Jay, Alexander Hamilton, James Madison writing Federalist Papers very inception, astute observers system Alexis deTocqueville Bryce during first century existence, many treatises well more than 400 volumes reports As writings reveal doubtless futile perhaps dangerous find epigrammatical explanation how Indeed, Jackson noted, "[a] judge surprised poverty really useful unambiguous applicable concrete problems actually themselves." 634, 888, (1952) (concurring opinion). 19 Our decision today dramatically alter situation, Framers "did judiciary overseer government." Id., 594, S.Ct., 889 (Frankfurter, confined us. involves nullified liens suspended effort comply Agreement set expedited briefing schedule, lower reached conflicting conclusions validity and, Solicitor General informed us, unless acted consider breach Agreement. 20 But turning facts we believe determine result stress expeditious treatment issues involved considered us acutely aware necessity narrowest possible ground capable deciding Ashwander TVA, 297 288, 347, 56 466, 483, 80 688 (1936) (Brandeis, does reasoned analysis give fiat. statement Jackson—that decide difficult virtue commissions, competence especially true attempt lay down "guidelines" covering situations confine 21 Perhaps so reconcile foregoing definition III range vitally important day-to-day regularly decided Executive, challenge interference Judiciary, rare, episodic, afford little precedential value subsequent cases. tensions tri-partite established Constitution reflected opinions Members once. stated Curtiss-Wright Export Corp., 299 304, 319-320, 57 216, 220-221, 81 255 (1936): 22 "[W]e alone vested exertion delicate, exclusive sole organ government field relations—a require which, course, like every must subordination provisions Constitution." 23 yet years later, concurring Youngstown, supra, parties agree brings together much combination common sense area, focused "plenary President" rather responded virtually unlimited noting: 24 "The example most impressed forefathers prerogative George description evils Declaration Independence leads me doubt creating new image." U.S., 641, 873. 25 turn factual freely confess obviously episode never-ending tension exercising world presents each day he live disputes embodies sort checks balances. 26 * 4, Tehran seized diplomatic captured hostage. crisis, 91 Stat. 1626, §§ 1701-1706 (1976 ed., Supp. III) (hereinafter IEEPA), 1979,1 "all instrumentalities controlled entities Central become ." Exec. 12170, CFR 457 (1980), note following 1701 III).2 Carter promulgate carrying order. 15, Department's Office Assets Control regulation Iran." 31 535.203(e) (1980). clear 535.805.3 27 26, "entry decree analogous effect. 535.504(a). clarifying stating "the contained 535.504(a) includes pre-judgment attachment." 535.418. 28 Dames Moore California complaint, wholly owned subsidiary, International, S. R. L., party written subsidiary's entire assigned contract, subsidiary conduct site studies proposed nuclear plant terms terminated own convenience 30, 1979. contended, however, $3,436,694.30 date termination.4 29 20, embodied Declarations Democratic Popular Algeria. Algeria (App. Pet. Cert. 21-29), Concerning America (id., 30-35). "[i]t purpose [the Iran] litigation other, arbitration." 21-22. furtherance goal, called establishment arbitrate settled within six months. Awards "final binding" "enforceable nation accordance laws." 32. Agreement, 30 "to persons institutions enterprises, prohibit based 22. addition, "act transfer" 24-25. One billion dollars deposited security account England, Algerian Bank, satisfy awards rendered Ibid. 32 series Nos. 12276-12285, 46 Fed.Reg. 7913-7932. These permitting securities, deposits; "nullified" 1979; required York, Treasury." 12279, 7919. 33 "ratified" 19th Orders. 12294, 14111. "claims Tribunal" "shall States." claim; discharged purposes recovery paid, due. 34 27, moved motion Thereafter, attempted execute writs garnishment State sheriff's sale Washington noticed However, May 28, amended 8, light discussed above. App. 106-107. 35 April declaratory injunctive 1-12. denied preliminary granted. Prior Court's ruling, Courts First Columbia Circuits upheld issue challenged See Chas. Main Int'l, Inc. Khuzestan Water Power Authority, 651 F.2d 800 (CA1 1981); Int'l Group, 211 U.S.App.D.C. 468, 657 430 (1981). 36 3, notice docketed Ninth Circuit. mandate deposits financial noon, 19." 151-152. Court, levy, lien" favor 168. Arguing "imperative public importance," sought 10. 2101(e); Rule 18. great significance demand prompt resolution, petition writ, adopted oral 452 932, 3071, 434 II 37 courts, confronted questions, agreed (1952). Black's Truman's seize country's steel mills wake nationwide strike, "[t]he any, stem itself." 585, 864. Jackson's elaborated consequences different types interaction democratic branches assessing Presidential given When acts express implied exercises delegated Congress. "would supported 871. "a zone twilight concurrent distribution uncertain." becomes complicated, far separation-of-powers principles concerned, hinges consideration shed views Legislative Branch toward "congressional inertia, indifference quiescence." Finally, contravention "his lowest ebb," can "only disabling subject." 637-638, 871-872. 38 past found do classification three categories analytically useful, mindful Holmes' admonition, quoted Frankfurter 597, 890 opinion), ordinances establish divide fields black white." Springer Philippine Islands, 277 189, 209, 48 480, 485, 845 (1928) (dissenting himself represented somewhat over-simplified grouping," 635, 870, instance falls, neatly pigeonholes, point along spectrum running explicit prohibition. particularly respects responses crises nature hardly expected anticipate detail. 39 post-November directing funds securities ultimate cited five sources inherent Government, principally relied 203 1702(a)(1) III), actions. Section provides part: 40 "At times specified section title, may, prescribe, means instructions, licenses, otherwise— 41 "(A) investigate, regulate, prohibit— 42 "(i) exchange, 43 "(ii) transfers credit payments between, by, through, banking institution, involve thereof, 44 "(iii) importing exporting currency 45 "(B) direct compel, nullify, void, prohibit, acquisition, holding, withholding, use, transfer, withdrawal, transportation, importation exportation of, in, privilege thereof interest; "by person, 47 contends "nullifying" plain language above statute. contention. Circuit explained: 'blocked' country, again 'nullified' property's transfer. actions, regard, keeping IEEPA: initially 'prevent[ed] prohibit[ed]' 'transfers' assets; later 'direct[ed] compel[led]' 'transfer' 'withdrawal' assets, 'nullify[ing]' 'rights' 'privileges' 49 "Main argues supply override remedies, injunctions, extinguish 'interests' citizens. limitation IEEPA's terms. sweeping unqualified. broadly 'exercising [by person of] .' 1702(a)(1)(B)." F.2d, 806-807 (emphasis original). employed rationale sustaining action: 51 revocation restraints falls vacating 'nullify [and] States.' U.S.App.D.C., 477, 439 (footnote omitted). 52 ignore statute examination TWEA), 411, amended, ed. pertinent intended extensive emergency. According once instituted him discontinue controls." Brief 53 refuse "nullify." result. think Orvis Brownell, 345 183, 73 596, 97 938 (1953).5 peacetime, affected likewise Regulations "unless licensed" "may 535.805. such, contingent assets. 54 previously put control hands President. Propper Clark, 337 472, 493, 1333, 1345, 93 1480 (1949). Accordingly, accept practical individual throughout garnishments, encumbrances property. Neither result.6 55 871 say heavy A contrary ruling whole lacked see id., 636-637, 870-871, prepared say. IV remains courts. have, apart accompanied terminating 12294 purported 1732, so-called "Hostage Act."7 14111 conclude although nullification authorize citizens themselves efforts rights An personam lawsuit, eventually reduced executed upon, liability fix damages focus jurisdiction. therefore view question. 809-814; 481, 443, 15; Marschalk National Airlines 518 F.Supp. 69, 79 (SDNY Electronic Data Systems Corp. Social Security 508 1350, 1361 (ND Tex. 1981). passed 1868, provides: 58 "Whenever citizen unjustly deprived liberty government, shall duty forthwith reasons imprisonment; appears wrongful citizenship, release citizen, demanded unreasonably delayed refused, means, amounting war, proper obtain effectuate release; relative thereto soon practicable communicated Congress." Rev.Stat. 2001, 1732. 59 reluctant suggests cover several difficulties view. indicates situation unlike recent crisis. 1868 concerned activity countries refusing recognize citizenship naturalized traveling abroad, repatriating will. Cong. Globe, 40th Cong., 2d Sess., 4331 (1868) (Sen. Fessenden); 4354 Conness); 1731. interested returning exchange ransom. explains reference imprisonment "in citizenship." hostage-taking violated decency, refusal citizenship—they precisely citizenship. ambiguous contemplated reprisals offending 4205 (1868); 490-491, 452-453 (opinion Mikva, J.). 60 Concluding entirely irrelevant action. looser indicating noted Part 670-672, delegates similarly willingness discretion responding sovereigns. Senator Williams, draftsman it: 61 "If you propose all, invest discretion, apply arise. England France adopt relieve imprisoned countries; Barbory another policy; islands ocean, another. systems means." 4359 (1868). Proponents bill placed "loose discretion" hands, 4238 Stewart), argued "[s]omething intrusted Executive" ought what exigencies rescue [a] imprisonment." 4233, 4357 Williams). original version trade arrest retaliation, rejected "there variety arising where equally effective, end desired accomplished resorting violent measures." 4233 63 declined authorizes tenor legislation trying legislate act. delegate not, "especially areas security," imply disapproval" Executive. Haig Agee, 280, 291, 2766, 2774, 640. closely related evinces intent accord "invite" "measures independent presidential responsibility," At when, engaged turn. 64 Not infrequently affairs nations, outstanding "sources friction" 225, 563, 796 (1942). resolve difficulties, nations often respective treatise writer puts it, "are reflecting traditional theory." L. Henkin, Affairs 262 (1972). Consistent principle, Though Senate.8 agreements, renounce governments return lump-sum procedures. sure, encouraged themselves, claimant's hope payment lie having negotiate behalf. undisputed "United disposed consent, consultation them, usually interests, distinguished whole." 262-263. Accord, Restatement (Second) Relations Law 213 (1965) (President waive [even] [injured] national"). today. Since 1952, $80 million People's China.9 65 Crucial 13, 1621 seq. IV). purposes: (1) allocate received course Yugoslavia, (2) provide procedure whereby resulting future distributed. achieve ends 1623(a). implement stamp approval observed Yugoslavia future. H.R.Rep. 770, 81st 1st 66 Over frequently thus demonstrating authority. China, example, allocation formula 1627(f) it. 1976, Commission adjudicate merits East Germany, "be better position adequate claims." S.Rep. 94-1188, p. (1976), U. Code Admin. News, pp. 5582, 5583; 1644b. Similarly, recently facilitate Vietnam. 1645, 1645a(5) House Report official inventory losses private Vietnam achieved "through Government-to-Government negotiation 96-915, 2-3, 1980, 7328, 7329-7330. stressed "[n]othing interfere [block assets], impede countries." 95-466, (1977), 1977, 4540, 4544; 1706(a)(1) III).10 67 (1942), Litvinov Assignment, part Soviet Union amounts paid. explained integrally connected normalizing States' relations state: 68 "Power obstacles full recognition certainly modest No rehabilitation nation, historic conception responsibilities drastically revised." 229-230, 565-566. Judge Learned Hand recognized: extends mutual government; unreasonable circumscribe controversies. amity depends satisfactory compromise claims; compromises earliest offices civilized nations." Ozanic 188 228, 231 (CA2 1951). 70 arguments opposition proposition First, corresponding immunity. observes government. restrictive notion "Tate" letter, longer needed aid that, result, "disappeared." merit, 71 next asserts divested FSIA), 1330, 1602 1330. FSIA, government's case-by-case basis. principal depoliticize lawsuits arena affairs—where pressures avoid immunity—and placing insists Constitution. disagree. place, purports "suspend" "jurisdiction." Order, "revive" judicially enforceable short, illustrates difference modifying federal-court rule law. Schooner Peggy, Cranch 103, (1801). belies argument. suggest determination divests Yet, argument, accepted, reject encroachment state's reads too broadly. codify contemporary concepts concerning withdraw determinations accorded states. 813-814; 482, 444. namely fairly telling proposals agreements.11 quite unlikely accomplish sub silentio FSIA. And, above, year nothing surprising support 74 foregoing—the settlement—we 12294. pointed 610-611, 897-898, systematic, unbroken, long pursued knowledge never questioned treated gloss 'Executive Power' II." Past itself, create "long-continued raise [action] [taken] pursuance Midwest Oil Co., 236 459, 474, 309, 313, 673 (1915). 292, 2774. consented exceeded powers. 75 chosen meaningful relief. enhance opportunity recover removes procedural impediments faced Respondents 13-14. overly sanguine chances degree naivete judges, General's discounted. remember depend forum receiving something access tribunal appear real "settlement" easily analogized past. 76 Just importantly, hearings itself,12 displeasure Quite Senate Committee "of vital importance S.Rep.No.97-71, (1981).13 clearly resisted 77 re-emphasize narrowness decision. possesses entities. stressed, sheer magnitude background diversity complexity modern trade, cautions broader construction necessary." Chas 814. V 78 address contention authorized, constitute compensation.14 Both concede review. 34, 32; 65. Khuzenstan 814-815; 447. contention, 1491 event. speculative inconsequential 'reasonable, compensation.' Regional Rail Reorganization Cases, 419 102, 124-125, 95 335, 349, 320 (1974), quoting Cherokee Nation Southern Kansas 135 659, 965, 971, 295 (1890); Cities Service McGrath, 342 330, 335-336, 334, 337-338, 359 (1952); Duke Carolina Environmental Study 438 59, 94, 39, 98 2620, 2641, 595 (1978). contended "treaty exception" Claims, 1502, preclude takings bring. conceded 1502 bar Tr. Oral Arg. 39-42, 47. agree. Weld, 127 51, 1000, (1888); Old Settlers, 148 427, 650, 509 (1893); Hughes Aircraft 534 889, 209 Ct.Cl. 446 (1976). believes suffered accordingly affirmed, forthwith. ordered. 82 STEVENS, part. 83 my prosecute "taking" remote I opinion. join remainder 84 POWELL, dissenting 85 except giving rise Ante, separate taking. leave open hundreds differ dissent erroneous,1 premature instrumentalities. adjudicated others paid full. holds whose valid acknowledges. pay compensation furthers goals using chips" lawfully relatively few courts.2 extraordinary rests cannot, displace Compensation Clause Title 1701(a) unusual threat, source substantial outside security, policy, economy declares threat." declaration 1702(a)(1)(B) "investigate, 535.805 (1980) full: rulings, authorizations, forms thereunder incapable submitted conciliation unwilling results conciliation, finally resort 7, n.2. theories, meeting matters relating "has continually postponed [the] intend place." Complaint CV 79-04918 LEW (Px) (CD Cal.), ¶ 27. powers: temporarily block foreign-owned summarily permanently vest title "vesting" dispose 1977 purposefully permissible TWEA. "vest" follow otherwise manner done errs assuming defies holding. "direct compel" "transfer, Brownell Zittman 341 446, 832, 1096 (1951), right retain claimant respecting concedes forbidden nevertheless allowed acquire revocable, themselves. urged licensed," regulations. situated hands. "revocable," "contingent," IEEPA," answers condition effect, "property" 490, 430, (1981), moniker Act" newly coined litigation. Suffice shorthand W. Shakespeare, Romeo Juliet, II, scene line ("What's name?"). "Wilmington Packet" 1799, Presidents Lillich, Gravel Trade Reform 1974, Am.J.Int'l 837, 844 (1975). fact, period 1817-1917, "no fewer eighty looking liquidation citizens." McClure, Agreements (1941). Whiteman, Digest 247 (1970). Those [1979] U.S.T. 1957 (People's China); [1976] 3933 (Peru); 4214 (Egypt); [1974] 227 [1973] 522 (Hungary); [1969] 2654 (Japan); [1965] (Yugoslavia); [1963] 969 (Bulgaria); [1960] 1953 (Poland); 317 (Rumania). consistently failed object agreement, so. 1972, entertained oversight took limited text significant transmitted 112b. 640, "[d]espite officially promulgated withhold passports 1978, 'though passports, left completely untouched rule-making earlier Act.' 301, 2779, Zemel Rusk, 381 1, 12, 1271, 1278, 179 (1965). Likewise though legislating "untouched" 112b During bill, Case, sponsor settlements: "I interesting [area] individual, force, fact." Transmittal Congress: Hearings 596 Relations, 92d (1971). typically effective. Congressional Oversight Agreements: 632 1251 Subcommittee Separation 94th 243-261, 302-311 (1975); Review Scientific 167, 246 97th Sess. (1981); Asset Banking, Housing Urban Affairs, Contrast reaction 1973 Czechoslovakia. There $105 Czechoslovakia $20.5 million. quickly renegotiated. 839-840. shown itself objecting rarely Even conditional, making condition. entitling creditor satisfaction compensable Amendment, Armstrong 364 40, 1563, 1554 (1960); Louisville Radford, 555, 854, 1593 (1935), revocability suffices render 49, 1569: Amendment's guarantee forcing people bear burdens fairness justice, borne unanimously reaffirmed understanding Agins City Tiburon, 447 255, 260-261, 100 2138, 2141-2142, 106

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