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Previously, victims of Iranian-backed terrorism could not seek compensation from Tehran because of international immunity laws. But the Justice for Victims of Terrorism Act aimed to lift state immunity from countries that sponsor terrorism.

In 2012, after the law came into effect, victims of Hamas and Hezbollah attacks began asking Ontario courts for a share of Iran’s assets in Canada due to its role as financier, trainer and weapons supplier to the terror groups.

Most of the cases were filed by Americans looking to enforce civil judgments awarded by the U.S. courts. The Ontario court subsequently seized Iran’s non-diplomatic assets in Canada, which include several bank accounts worth more than $2.6 million as well as properties in Toronto and Ottawa.

The Iranian embassy and official residence were not included among the assets because they were deemed diplomatic property. Iran publicly condemned the court action at the time but did not defend itself in court until Monday’s appearance.

While terrorism cases are becoming increasingly common in Canada’s criminal courts, the matter is before the commercial court, with lawyers splitting legal hairs over the fallout from suicide bombings and kidnappings.

The lawyers representing Iran made a long list of arguments, including that victims had to do more than show that the terrorist groups that harmed them were sponsored by Iran. “I say that’s not enough,” Stevenson said. “They have to show a connection between the funding and the terrorist acts.”

They also argued that the cases had not been filed in time, that a York University professor who testified was biased against the Iranian regime, and that the Canadian government had not given Iran sufficient notice that it was suspending diplomatic ties.

In addition, the lawyers argued the bank accounts that terror victims are seeking were used to pay the tuition and expenses of Iranian students in Canada. As such, they should be considered diplomatic assets and out of reach of the civil courts, they said.

National Post

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