Iraq Settlement Agreement

2011 – 0100

CLAIMS SETTLEMENT AGREEMENT BETWEEN
THE GOVERNMENT OF THE UNITED STATES
OF AMERICA AND THE GOVERNMENT
OF THE REPUBLIC OF IRAQ

The Government of the United States of America and the
Government of the Republic of Iraq ("the Parties"), as friendly and
co-equal sovereigns, firmly desire to seek their mutual interest by
settling certain claims of United States nationals arising from
actions of the former Iraqi regime. Accordingly, the Parties have
agreed as follows:
ARTICLE I
For purposes of this Agreement:
I. Except as otherwise indicated by use of a specific term,
reference to "Iraq" shall mean the Republic of Iraq, the
Government of the Republic of Iraq, any agency or
instrumentality of the Republic of Iraq, and any official,
employee or agent of the Republic of Iraq acting within the
scope of his or her office, employment, or agency.
Reference to "U.S. nationals" shall mean natural and juridical
persons who were U.S. nationals at the time their claim arose
and through the date of entry into force of this Agreement.

ARTICLE II
I It is the purpose of the Parties, within the framework of and
pursuant to the provisions of this Agreement, to terminate all
litigation in any U.S. federal or state court, and to settle and
extinguish all U.S. national claims wherever asserted, against
Iraq, that relate in whole or in part to any private right of
action asserted under U.S. federal, state, tbreign, or
international law, as described in Article Ill of this
Agreement.
2

.

As set out in Article V of this Agreement, the Government of
the United States agrees to terminate all legal proceedings in
U.S. federal or state courts involving claims, suits or actions
that come within this Agreement against Iraq, to nullify all
attachments and judgments obtained in such claims, suits or
actions, to preclude all further U.S. litigation based on such
claims, suits or actions, and to settle and extinguish all such
claims of U.S. nationals.
.

ARTICLE III
I. Claims, suits or actions that come within this Agreement are
claims, suits or actions that:
(a)( i) Are against Iraq; and
(ii) Arise from alleged personal injury (whether physical
or non-physical, including emotional distress) or death
caused by any act of torture, extrajudicial killing, aircraft
sabotage, hostage-taking, or the provision of material
support or resources for such an act; and

( iii) Arc based on an act that occurred prior to October 7,
2004, excluding all claims, suits, or actions tiled in U.S.
federal or state courts prior to the date on which this
Agreement is signed and relating to the events that gave
rise to the actions listed in the Annex attached to this
Agreement; or
(h) Were the subject of an exchange of diplomatic notes,
dated January 13, 1990 and May 2, 1990, between the United
States and Iraq, which provided for payment of certain
physical injury claims.

2. The objectives of this Agreement with respect to claims, suits or
actions that come within this Agreement are:
(a) 1 o reach a final settlement of claims of the Government
of the United States and, through espousal, claims of U.S.
nationals ( 1.J.S. national claims");
.

-

-

(I)) Regardless of nationality,
( i) to terminate permanently all suits and actions in U.S.
federal or state courts ( including suits or actions in
which judgments are still subject to appeal or other
direct judicial review); terminate all proceedings in
U.S. federal or state courts to secure and enforce nonfinal or final judgments; and vacate all final judgments
rendered by U.S. federal or state courts; and
( ii) to preclude any future suits and actions in U.S.
federal or state courts.

ARTICLE IV
1. The Government of the United States shall accept from the
Government of the Republic of Iraq the sum of tour hundred
million United States dollars (U.S.S400,000,000) (the "settlement
amount") in full and final settlement of the U.S. national claims
that come within this Agreement.
2. The Government of the United States shall he exclusively
responsible for the distribution of the settlement amount. Funds
held for distribution may be invested by the Government of the
United States but are not required to earn interest.
3. Payment of the settlement amount shall be effected by the
Government of the Republic of Iraq within ninety (90) days from
the date of entry into tbrce of this Agreement.
ARTICLE V
Upon payment of the settlement amount, the Government of the
United States shall:
. With respect to any claim, suit, or action that comes within this
Agreement, secure, with the assistance of the Government of the
Republic of Iraq if necessary, the termination of any claim, suit or
action, regardless of claimants' nationality, in U.S. federal or state
court (including proceedings to secure and enforce court
judgments); seek the vacatur of any judgment rendered by a U.S.
federal or state court; and preclude any new claim, suit or action in
any U.S. Rderal or state court.
2. Release and finally discharge Iraq from all U.S. national claims
that come within this Agreement and refrain from presenting any
such claim to Iraq in the future. Consistent with this release and
final discharge, if any U.S. national claim that conies within this
4

Agreement is presented directly to Iraq, Iraq will have no
responsibility for the claim and should direct the claim back to the
Government of the United States for appropriate treatment by the
Government of the United States alone.
ARTICLE VI
The Government of the United States shall confirm its recognition
of the same sovereign, diplomatic and official immunity of Iraq
and its property, and for its agencies, instrumentalities, officials,
employees and agents and their property, as is normally recognized
within the U.S. legal system for other states and their property, and
for their agencies, instrumentalities, officials, employees and
agents and their property.
ARTICLE VII
1.
This agreement is without prejudice to claims that do not
come within Article III of this Agreement.
Ehe Government of the Republic of Iraq retains the. right to
present to the Government of the United States any .claims not
addressed by this or any other agreement between the Parties.
3.
For this purpose, the Parties shall establish a joint
commission to study the claims.
ARTICLE VIII
If a dispute arises between the Parties as to the interpretation or
performance of any provision of this Agreement, either party may
refer the dispute to a joint commission to be established by the
Parties to seek an amicable settlement.

ARTICLE IX
This Agreement shall enter into force following an exchange of
diplomatic notes confirming that the actions by the Parties
necessary to bring the Agreement into force in accordance with the
respective constitutional procedures in effect in both countries
have been completed. The Parties recognize that, upon entry into
force, this Agreement imposes binding international obligations.

DONE in duplicate at Baghdad tl 2:" day of S.T6—Lr2010,
corresponding to 2- 3 " j day ,..,„3„ month of 14 3i A.II. in
the English and Arabic y • guages, both texts being, equally
Judie (.-/.

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OF TIIE UNITED STATES
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FOR THE GO ERNMENT
OF THE REPUBLIC
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ANNEX

I. Smith v. Islamic Emirate of Afkhanistan et a!. (SD.N.Y.),

01-CIV-10132
2. In re Terrorist .Attacks on September II, 2001 (S.D.N.Y.),
03-and-0I 570