Ottawa criticized for backing Iran in court cases

National Post

The government of Canada is arguing against victims of terrorism and in support of the Islamic Republic of Iran in precedent-setting court cases seeking to strip ownership of Tehran’s assets in Canada and hand them to victims of Iranian-backed terror.

Ottawa’s request to intervene in the two court cases, so it can protect Iran’s diplomatic assets, was approved Friday by an Ontario judge.

“Iran’s state immunity has been lifted but its diplomatic immunity remains intact,” lawyers for Canada’s Department of Justice argued in documents filed with the Ontario Superior Court of Justice.

Allowing victims of Iranian backed terrorism to seize Iran’s diplomatic property in Ottawa, including its embassy and ambassador’s residence, would breach international law and make Canada’s missions around the world vulnerable to similar action, the government claims.

“The inability of Canada to protect diplomatic property from execution by creditors of Iran could negatively impact on the inviolability of Canada’s diplomatic assets abroad,” lawyers for the government argued.

The two cases involve U.S. citizens who were victims of terrorist attacks for which U.S. courts have declared Iran responsible.

One lawsuit is by the family of Marla Bennett, 24, who was killed in a 2002 bombing on the Hebrew University campus in Jerusalem where she was a graduate student. A U.S. court found in 2007 that Hamas was responsible for the attack, using material support from Iran. Iran was ordered to pay Ms. Bennett’s parents and sister almost US$13 million.

The other is by Alann Steen and the family of David Jacobsen. The men were kidnapped in Lebanon in the 1980s and held hostage by Hezbollah on behalf of Tehran, a U.S. court found. In 2003, the court ordered Iran to pay Mr. Steen US$342 million; in 2006, the Jacobsen family won a US$6.4-million judgment.

In all cases, the victims were unable to satisfy the judgments with Iranian assets in the U.S. and turned to Canada’s courts to secure its assets here to settle outstanding debt.

In November, a restraining order against Iran’s properties in Ottawa and Toronto was ordered by an Ontario judge.

Ottawa stepping in to argue in support of Tehran’s interests disappointed lawyers working on behalf of the victims.