Dames & Moore v. Regan
Encyclopedia
Dames & Moore v. Regan
Donald Regan
Donald Thomas Regan ,was the 66th United States Secretary of the Treasury, from 1981 to 1985, and Chief of Staff from 1985 to 1987 in the Ronald Reagan Administration, where he advocated "Reaganomics" and tax cuts to create jobs and stimulate production.-Early life:Born in Cambridge, Massachusetts,...

, was a United States Supreme Court case dealing with President Jimmy Carter
Jimmy Carter
James Earl "Jimmy" Carter, Jr. is an American politician who served as the 39th President of the United States and was the recipient of the 2002 Nobel Peace Prize, the only U.S. President to have received the Prize after leaving office...

's Executive Order 12170
Executive Order 12170
Executive Order 12170 was issued by American president Jimmy Carter on November 14, 1979 during the Iran hostage crisis. This allowed the freezing of all Iranian assets held within the United States.-External links:...

, which froze Iranian assets in the United States on November 14, 1979 in response to the Iran hostage crisis
Iran hostage crisis
The Iran hostage crisis was a diplomatic crisis between Iran and the United States where 52 Americans were held hostage for 444 days from November 4, 1979 to January 20, 1981, after a group of Islamist students and militants took over the American Embassy in Tehran in support of the Iranian...

 which began on November 4, 1979.

Holding

After the inauguration of Ronald Reagan
Ronald Reagan
Ronald Wilson Reagan was the 40th President of the United States , the 33rd Governor of California and, prior to that, a radio, film and television actor....

 on January 20, 1981, the Reagan administration agreed with Iran to terminate legal proceedings in U.S. courts involving claims by U.S. nationals against Iran, to nullify attachments against Iranian property entered by U.S. courts to secure any judgments against Iran, and to transfer such claims from U.S. courts to a newly created arbitration tribunal. These agreements were implemented by executive orders.

A unanimous Supreme Court, in an opinion by Justice William H. Rehnquist, upheld these actions by the Reagan administration and "dismissed a $3 million lawsuit from private firm Dames & Moore against Treasury Secretary
United States Secretary of the Treasury
The Secretary of the Treasury of the United States is the head of the United States Department of the Treasury, which is concerned with financial and monetary matters, and, until 2003, also with some issues of national security and defense. This position in the Federal Government of the United...

 Don Regan, filed to recover a debt incurred by the Shah of Iran
Mohammad Reza Pahlavi
Mohammad Rezā Shāh Pahlavi, Shah of Iran, Shah of Persia , ruled Iran from 16 September 1941 until his overthrow by the Iranian Revolution on 11 February 1979...

’s government." The Court found that the administration's actions were authorized by law by the International Emergency Economic Powers Act
International Emergency Economic Powers Act
The International Emergency Economic Powers Act , Title II of , is a United States federal law authorizing the President to regulate commerce after declaring a national emergency in response to any unusual and extraordinary threat to the United States which has a foreign source.-Provisions:In the...

 (IEEPA). The Supreme Court also approved the suspension of claims filed in U.S. courts even though no specific statutory provision authorized that step. In so doing the Court relied on inferences drawn from related legislation, a history of congressional acquiescence in executive claims settlement practices, and past decisions recognizing broad executive authority. The Court also "substantially refined the applicable test" of the seminal 1952 case of Youngstown Sheet & Tube Co. v. Sawyer
Youngstown Sheet & Tube Co. v. Sawyer
Youngstown Sheet & Tube Co. v. Sawyer, , also commonly referred to as The Steel Seizure Case, was a United States Supreme Court decision that limited the power of the President of the United States to seize private property in the absence of either specifically enumerated authority under Article...

and cemented Justice Robert H. Jackson
Robert H. Jackson
Robert Houghwout Jackson was United States Attorney General and an Associate Justice of the United States Supreme Court . He was also the chief United States prosecutor at the Nuremberg Trials...

's concurring opinion in that case as "canonical."

Rehnquist wrote the opinion in this "highly complex and historic case" in eight days.

Reaction

This decision has been criticized for taking "an exceptionally deferential view of executive power
Powers of the President of the United States
The President of the United States has numerous powers, including those explicitly granted by Article II of the Constitution, implicit powers, powers granted by Acts of Congress, and enormous influence and soft power from his position of leader of the United States.-Powers of State:Because the...

," in particular by relying on inferences from statutes that do not directly deal with certain subjects at hand and, especially, on legislative acquiescence in executive activity.

After Rehnquist's death, Justice John Paul Stevens
John Paul Stevens
John Paul Stevens served as an Associate Justice of the Supreme Court of the United States from December 19, 1975 until his retirement on June 29, 2010. At the time of his retirement, he was the oldest member of the Court and the third-longest serving justice in the Court's history...

 cited Dames & Moore as one of his two favorite Rehnquist opinions, along with Leo Sheep Co. v. U.S.

Further reading


External links

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