Jacobsen v. Oliver (D.D.C. 2006): Perceived Failure to Sue Iranian Ministry of Intelligence and Security for Punitive Damages

The plaintiff sued his former attorneys for malpractice, on the basis that they did not seek punitive damages in the plaintiff’s successful claim against Iran for being held hostage in Beirut in 1983. The plaintiff argued that by failing to name the Iranian Ministry of Intelligence and Security as a defendant in that case, his attorneys prevented him from collecting substantial punitive damages under the Foreign Sovereign Immunities Act. He also alleged that the attorneys charged him an excessive contingency fee. The Court dismissed the first claim, as the ability to collect punitive damages at the time was limited by President Clinton’s executive waiver of the punitive damages provision. The Court further ordered the parties to settlement discussions regarding the excessive fee complaint. The plaintiff later appealed this decision, but the case was ultimately dismissed.

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