GENOCIDE VICTIMS LOSE COURT CASE
By Christopher Cadelago

Glendale News Press
09/08/25/politics/gnp-courtreact082509.txt
Aug 25 2009
CA

Two of three judges vote to nullify state law giving heirs the right
to sue for unpaid benefits.

DOWNTOWN — A state law allowing heirs of victims of the Armenian
genocide to sue in state courts for unpaid insurance benefits was
deemed unconstitutional last week by a federal appeals court, setting
off a wave of local reaction.

A divided three-judge panel of the U.S. 9th Circuit Court of Appeals on
Thursday nullified the state law that allowed descendants of Armenian
genocide victims killed by the Ottoman Empire to request payment on
the life-insurance policies of relatives.

The panel said in its 2-1 decision that the law amounted to
unconstitutional interfering in U.S. foreign policy. The same panel
one day prior used similar reasoning to strike down a state law meant
to aid the inheritors of artwork allegedly stolen by Nazis. Both
of the laws extended the statute of limitations to file claims to
Dec. 31, 2010.

Thursday’s decision was based on a 2003 U.S. Supreme Court ruling
that invalidated a state law designed to help Holocaust survivors
collect on World War II-era insurance policies.

Three times Congress has considered resolutions in the last decade
that would have provided recognition of the Armenian Genocide. But the
White House each time urged that the bills be foiled, fearing that
their passage would damage relations with Turkey, whose government
denies that a genocide took place.

"Our position is it’s not just a stretch, it’s bordering on ludicrous,"
said Brian S. Kabateck, a Los Angeles lawyer representing the
plaintiffs, and whose maternal grandparents died in the genocide. "I
think these judges — the two judges that ruled against us — saw
it wrong."

Prior Armenian genocide cases yielded significant agreements, including
a 2004 settlement in which New York Life Insurance Co. agreed to pay
$20 million and a 2005 settlement in which AXA S.A. agreed to pay
$17 million.

Armenian descendants last year filed a class-action against Aviva PLC,
a British firm, and another suit is pending against Deutsche Bank.

Glendale priest Vazken Movsesian of St. Peter Armenian Church —
joined by the thousands of Armenians whose relatives were among the
1.5 million killed between 1915 and 1923 — filed their case six years
ago. The group sought a settlement of claims under policies issued by
German insurers Victoria Versicherung and Ergo Versicherungsgruppe,
as well as parent company Munchener Ruckversicherungs-Gesellschaft AG.

The plaintiffs scored a partial victory two years ago when
U.S. District Judge Christina A. Snyder said the law passed in 2000
by the California Legislature gave the descendants standing to sue.

The appellate court, however, reversed that decision.

"The federal government has made a conscious decision not to apply
the politically charged label of ‘genocide’ to the deaths of these
Armenians during World War I," said Judge David R. Thompson, who
wrote the majority opinion in Thursday’s rulings. "Whether or not
California agrees with this decision, it may not contradict it."

Neil Soltman, lawyer for one of the insurance companies, maintains the
ruling was consistent with past decisions overturning state efforts
to adopt legislation that interferes with the national government’s
foreign policy.

Because the ruling does not apply retroactively, none of the California
residents paid as part of earlier settlements must refund the money.

Genocide of Armenians during World War I has yet to be recognized
by the federal government, despite recognition by 42 states. The
Turkish government has made no official objection to any of the
states’ resolutions.

Rep. Adam Schiff, who as an assemblyman co-wrote the overturned
law, said he found the court’s reasoning perplexing. "It’s very,
very peculiar logic," he said. "I was very distressed to read the
opinion, and I think it’s an awful result." Kabateck, who indicated
he would appeal, said there is no conflict between the state law and
federal policy.

Local members of the Armenian community expressed dismay.

"The state has the right to reflect the will of its citizens, and in
this case it has already reflected that with laws that were passed,"
said Zanku Armenian, chairman of the Armenian National Committee
Glendale chapter. "A crime was committed back in 1915. What we are
trying to do is make sure that the U.S. government does not outsource
its foreign policy to a foreign government, in this case, Turkey. The
judges’ decisions in essence make the same mistake as the president
and the State Department."

The panel Thursday said the issue was defined by George W. Bush and
Bill Clinton when they warned that recognizing the Armenian Genocide
would damage U.S.-Turkey relations.

President Obama, who on the campaign trail said the nation deserves
"a leader who speaks truthfully about the Armenian genocide," stopped
short of using the term during a trip to Turkey in April and has not
taken a position on the court case.

"Clearly there was political pressure brought on these judges to
rule the way they did," Armenian said. "If the U.S. says ‘enough,’
what’s going to happen? The Turkish denial machine would crumble;
it would force them to start dealing with the truth."