ABA Banking Journal
No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
SUBSCRIBE
ABA Banking Journal
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
No Result
View All Result
No Result
View All Result
Home Uncategorized

U.S. Supreme Court grants petition to examine post-judgment relief in Hamas banking lawsuit

November 1, 2024
Reading Time: 3 mins read
U.S. Supreme Court grants petition to examine post-judgment relief in Hamas banking lawsuit

Post-judgment relief
BLOM Bank SAL v. Michal Honickman
Date: Oct. 4, 2024

Issue: Whether the Federal Rule of Civil Procedure 60(b)(6) applies to a post-judgment request to vacate to file an amended complaint.

Case Summary: The U.S. Supreme Court agreed to examine a Hamas banking lawsuit to determine whether the stringent standard of Rule 60(b)(6) of the Federal Rule of Civil Procedure applies to a post-judgment request to vacate to file an amended complaint.

In 2019, victims and families of victims of terrorist attacks from December 2001 to August 2003 sued BLOM Bank SAL, alleging it aided and abetted the attacks by providing financial services to three customers allegedly associated with Hamas. BLOM Bank argued respondents failed to plausibly allege it was aware of a link between the three customers and Hamas at the time the bank provided the services. The district court invited respondents to amend their complaint on multiple occasions, but respondents chose to proceed with the complaint as plead. The district court dismissed the complaint with prejudice, and on appeal, the Second Circuit affirmed. At no time during the appellate proceeding did respondents seek leave to amend.

Eighteen months after the Second Circuit affirmed, respondents filed a Rule 60(b)(6) motion to vacate the judgment in an attempt to amend its complaint. Rule 60(b)(6) provides “the court may relieve a party or its legal representative from a final judgment, order, or proceeding for … any other reason that justifies relief.” The district court denied the motion, as Rule 60 (b)(6) requires extraordinary circumstances to reopen a final judgment. However, the Second Circuit reversed, ruling district courts are “required to consider Rule 60(b) finality and Rule 15(a) liberality in tandem” when plaintiffs seek to reopen a judgment to file an amended complaint. BLOM Bank petitioned the U.S. Supreme Court for review.

In its petition, BLOM Bank made three main arguments. First, BLOM Bank argued the Second Circuit’s rule conflicts with the decisions of eleven other circuits. According to BLOM Bank, the U.S. Supreme Court has long recognized the compelling interest in protecting the finality of judgments under the Federal Rules of Civil Procedure. Consistent with those principles, BLOM argued Rule 60(b)(6) presents unsuccessful litigants with only “narrow grounds for obtaining post-judgment relief. However, in the Second Circuit’s view, the “liberal spirit of Rule 15(a) generally entitles litigants whose complaints have been dismissed with prejudice a chance to vacate the dismissal under Rule 60(b)(6) to amend — even after the judgment has been affirmed on appeal. BLOM Bank noted this view places the Second Circuit alone as the First, Third, Fourth, Fifth, Sixth, Seventh, Eighth, Ninth, Tenth, Eleventh, and D.C. Circuits have taken the opposite approach. BLOM Bank claimed the circuit split here could not be clearer and the Second Circuit’s decision cannot be reconciled with this “wall of contrary precedents” from other circuits.

Second, BLOM Bank argued the Second Circuit’s rule conflicts with the U.S. Supreme Court’s precedents. In 1897, the U.S. Supreme Court held in Southern Pacific Railroad Company v. United States that if court judgments were not considered final parties would have no reason to seek judicial tribunals to protect their rights to property and person. BLOM Bank stressed that the respect for finality applies with particular force when evaluating motions for relief from judgments under Rule 60. In Kemp v. United States, the Supreme Court noted that, because Rule 60(b)(6) is a catchall for relief on bases other than those in Rule 60(b)(1)-(5), “extraordinary circumstances must justify reopening.” Furthermore, BLOM Bank claimed the Court has left no room for Rule 15’s liberal amendment policy to creep into the equation.

Third, BLOM Bank argued the question presented is exceptionally important, and this case is a clean vehicle for resolving it. According to BLOM Bank, the question presented is critical to the principles of fairness, efficiency, and finality that animate the Federal Rules of Civil Procedure. Further, BLOM Bank claimed the Second Circuit’s standard eschews finality and undermines confidence in the outcome of litigation. BLOM Bank contended it is essential for the Court to clarify the legal framework governing a Rule 60(b)(6) motion seeking to reboot a case with post-judgment (and post-appeal) amendment to the case.

Bottom Line: BLOM Bank’s merits brief is due Dec. 9, 2024.

Documents: Petition

Tags: Banking Docket
ShareTweetPin

Related Posts

Recent news from Treasury’s Office of Foreign Assets Control: April 5

Recent news from Treasury’s Office of Foreign Assets Control: April 20

Uncategorized
April 20, 2026

News items that are the most recent sanctions-related actions from the Office of Foreign Assets Control.

Compliance question of the month: February 2025

Compliance question of the month: April 2026

Uncategorized
April 13, 2026

Compliance QOTM answers question on hiring incentives.

Recent news from Treasury’s Office of Foreign Assets Control: April 5

Recent news from Treasury’s Office of Foreign Assets Control: April 13

Uncategorized
April 13, 2026

News items that are the most recent sanctions-related actions from the Office of Foreign Assets Control.

Terrorism and money laundering aggregates published: April through June 2024

Terrorism and money laundering aggregates published: January through March 2026

Uncategorized
April 13, 2026

The FinCEN 314(a) Updates section is published on a periodic basis to better capture the trend line for 314(a) usage. Section 314(a) of the USA PATRIOT Act allows information sharing between law enforcement and the private sector where...

Recent news from Treasury’s Office of Foreign Assets Control: April 5

Recent news from Treasury’s Office of Foreign Assets Control: April 6

Uncategorized
April 6, 2026

News items that are the most recent sanctions-related actions from the Office of Foreign Assets Control.

ABA files amicus brief urging U.S. Supreme Court to review First Circuit’s Conti decision on NBA preemption

ABA files amicus brief urging U.S. Supreme Court to review First Circuit’s Conti decision on NBA preemption

Uncategorized
April 1, 2026

ABA filed a coalition amicus brief urging the U.S. Supreme Court to review a First Circuit decision that ruled the National Bank Act did not preempt Rhode Island’s interest‑on‑escrow law.

NEWSBYTES

HUD, FHFA roll out plans for new credit scoring in mortgages

April 22, 2026

House Republicans unveil data privacy bills

April 22, 2026

Bankers seek to communicate MDI value at D.C. summit

April 22, 2026

SPONSORED CONTENT

Why Your Systems Keep Slowing Down — and What to Do About It

Why Your Systems Keep Slowing Down — and What to Do About It

April 21, 2026
Planning Your 2026 Budget? Allocate Resources to Support Growth and Retention Goals

How leading banks are enhancing customer engagement through financial data insights

April 10, 2026
Check Fraud Is Outpacing Legacy Controls. What Banks Should Evaluate Now.

Check Fraud Is Outpacing Legacy Controls. What Banks Should Evaluate Now.

April 1, 2026
How top agricultural lenders are approaching AI, automation and innovation in 2026

How top agricultural lenders are approaching AI, automation and innovation in 2026

March 2, 2026

PODCASTS

Podcast: ABA’s ecosystem strategy to tackle fraud

April 22, 2026

Podcast: Capitalizing on opportunities to serve high-net-worth clients

April 9, 2026

Podcast: Are credit union commercial loans risky business?

March 30, 2026

American Bankers Association
1333 New Hampshire Ave NW
Washington, DC 20036
1-800-BANKERS (800-226-5377)
www.aba.com
About ABA
Privacy Policy
Contact ABA

ABA Banking Journal
About ABA Banking Journal
Media Kit
Advertising
Subscribe

© 2026 American Bankers Association. All rights reserved.

No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive

© 2026 American Bankers Association. All rights reserved.