Kadi v. Geithner

Following the events of September 11, 2001, the President issued Executive Order 13,224 (EO) pursuant to the International Emergency Economic Powers Act (IEEPA). The EO declared a national emergency in relation to the threat posed to the United States by various terrorist organizations. The EO further authorized the United States Secretary of the Treasury (Secretary) (defendant) to designate persons whose property should be blocked if it is found that such persons acted on behalf of, assisted, sponsored, or were otherwise associated with a specially designated global terrorist (SDGT). The Secretary thereafter delegated this authority to the Director of the Office of Foreign Assets Control (OFAC) (defendant). OFAC designated Kadi (plaintiff), a Saudi Arabian citizen, a SDGT, thereby blocking Kadi's property subject to United States jurisdiction. Kadi did not receive prior notice of the blocking order, but was subsequently notified by a personal letter outlining the administrative procedures available for challenging the blockage. Kadi petitioned OFAC for reconsideration, providing extensive material in support of his petition. After evaluating both classified and unclassified information, as well as Kadi's submissions, OFAC concluded Kadi's designation was reasonable. OFAC found Kadi acted on behalf of, assisted, and provided financial support to al Qaeda and associated with known terrorists, including Osama bin Laden. OFAC issued a lengthy unclassified memorandum denying Kadi's petition. Kadi brought suit against OFAC, arguing that the designation and blocking of his property were improper. Kadi contended OFAC's actions violated Kadi's right to due process. Kadi further argued that the freezing of his assets constituted both an illegal taking under the Fifth Amendment and an unreasonable search and seizure under the Fourth Amendment. OFAC moved for summary judgment.