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Dames & Moore v. Regan

Citations: 69 L. Ed. 2d 918; 101 S. Ct. 2972; 453 U.S. 654; 1981 U.S. LEXIS 44; 49 U.S.L.W. 4969Docket: 80-2078

Court: Supreme Court of the United States; July 2, 1981; Federal Supreme Court; Federal Appellate Court

Narrative Opinion Summary

In Dames & Moore v. Regan, the U.S. Supreme Court considered the legality of presidential actions under the International Emergency Economic Powers Act (IEEPA) in response to the Iranian hostage crisis. Following President Carter's national emergency declaration, the Treasury blocked Iranian assets, and subsequent executive orders mandated their transfer to the Federal Reserve. Dames & Moore sought to challenge these orders, arguing they exceeded constitutional powers and infringed on their legal rights. The district court ruled for Dames & Moore but vacated attachments pending appeal. On review, the Supreme Court upheld the executive actions, emphasizing the President's broad authority under IEEPA to nullify asset attachments and transfer them as a strategic measure during national emergencies. The Court found that these actions did not amount to a Fifth Amendment taking, as the petitioner's interests were conditional. The decision reaffirmed the President's power to enter executive agreements and settle international claims without Senate approval, supported by historical precedent and congressional acquiescence. Thus, the judgment was affirmed, recognizing the President's authority in foreign affairs, especially in crisis contexts.

Legal Issues Addressed

Blocking Orders as Negotiation Tools

Application: Blocking orders allow the President to maintain foreign assets as leverage in international negotiations.

Reasoning: Blocking orders enable the President to keep foreign assets available for negotiating resolutions to national emergencies, serving as a bargaining chip.

Conditional Nature of Asset Attachments

Application: Attachments on foreign assets are conditional and subject to revocation under presidential authority.

Reasoning: The petitioner's interest in the attachments was conditional and revocable; therefore, the President's actions did not constitute a Fifth Amendment taking without just compensation.

Executive Agreements and Settlement of Claims

Application: The President has historically settled claims against foreign nations through executive agreements without Senate approval.

Reasoning: Settlements of claims have historically been resolved through executive agreements without Senate approval, a practice still in effect today.

Judicial Review of Presidential Actions

Application: Presidential actions related to foreign policy are presumed valid and require substantial proof to be challenged.

Reasoning: The President's actions are backed by strong presumptions of legality and broad judicial interpretation, placing a heavy burden of proof on any challengers, which the petitioner did not meet.

Presidential Authority under the International Emergency Economic Powers Act (IEEPA)

Application: The President is authorized to nullify attachments and transfer foreign assets in response to national emergencies.

Reasoning: The President is authorized under the International Emergency Economic Powers Act (IEEPA), specifically 50 U.S.C. 1702 (a)(1)(B), to nullify attachments and order the transfer of Iranian assets.