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Case Name Kindhearts for Charitable Humanitarian Development v. Paulsen NS-OH-0001
Docket / Court 3:08-CV-2400 ( N.D. Ohio )
State/Territory Ohio
Case Type(s) National Security
Attorney Organization ACLU National (all projects)
Case Summary
Plaintiff KindHearts for Charitable Humanitarian Development, Inc. (KindHearts), an Ohio non-profit corporation established in 2002, provides millions of dollars of humanitarian aid internationally, principally towards Palestinians in the West Bank, Gaza, and refugee camps in Lebanon. On February 19 ... read more >
Plaintiff KindHearts for Charitable Humanitarian Development, Inc. (KindHearts), an Ohio non-profit corporation established in 2002, provides millions of dollars of humanitarian aid internationally, principally towards Palestinians in the West Bank, Gaza, and refugee camps in Lebanon. On February 19, 2006, the Office of Foreign Assets Control (OFAC) of the United States Treasury Department notified KindHearts that all its property and assets were frozen pending an investigation into whether KindHearts provided material support to Hamas. The same day, federal agents executed a search warrant at the KindHearts headquarters and the residence of its president. Over a year later in May 2007, OFAC provisionally determined that KindHearts should be designated as a Specially Designated Global Terrorist (SDGT) under the International Emergency Economic Powers Act (IEEPA), 50 U.S.D. § 1701 et seq. and Executive Order 13224 (E.O. 13224).

In October 2008, plaintiff, represented by the American Civil Liberties Union, filed suit in United States District Court for the Northern District of Ohio against OFAC, alleging violations of the First, Fourth, and Fifth Amendments, the Administrative Procedures Act, 5 U.S.C. § 701 et seq., the IEEPA, 50 U.S.C. § 1701(a), and E.O. 13224. Plaintiff requested an injunction vacating the freeze order and declaratory judgment.

The district court (Judge James Carr) issued a temporary restraining order blocking the SGDT designation pending judicial review. In November and December 2008, both parties moved for summary judgment and defendants moved to dismiss.

Meanwhile, plaintiff had filed a motion under the Federal Rules of Criminal Procedure 41(g) to recover some of the materials seized in February 2006. The district court ordered government to produce copies of the seized materials. In re Search of KindHearts for Charitable Humanitarian Development, Inc., 594 F. Supp. 2d 855 (N.D. Ohio 2009).

Following oral arguments on the issue of summary judgment, in August 2009 the district court partially granted the motion to dismiss with respect to some Fourth Amendment claims and OFAC's constitutional authority. Plaintiff's motion for partial summary judgment was granted with respect to OFAC's violation of the Fourth Amendment, failure to provide notice an opportunity to be heard, and blocking plaintiff's funds to compensate its legal counsel. KindHearts for Charitable Humanitarian Development, Inc. v. Geithner, 647 F. Supp. 2d 857 (N.D. Ohio 2009).

Plaintiff moved for, and the district court granted, a temporary restraining order enjoining defendants from proceeding with the SGDT designation process pending the court's adjudication of applicable remedies for the constitutional and statutory violations found in the August 2009 order. KindHearts for Charitable Humanitarian Development, Inc. v. Geithner, 676 F. Supp. 2d 649 (N.D. Ohio 2009).

Following supplemental briefing on the issue of applicable remedies, in May 2010 the district court ordered government to show probable cause and provide plaintiff with notice of its basis for the freeze on its assets and the pending OFAC investigation. KindHearts for Charitable Humanitarian Development, Inc. v. Geithner, 710 F. Supp. 2d 637 (N.D. Ohio 2010).

Defendants provided briefing on the issues, and the parties headed towards trial. However, in January 2012, the parties settled. Plaintiff was required to dissolve and cease operations, and defendants were required to remove Kindhearts from all lists of entities whose assets are blocked and to pay $330,000 in attorneys' fees and expenses.

Elizabeth Homan - 11/18/2013


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Issues and Causes of Action
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Issues
Constitutional Clause
Due Process
Free Exercise Clause
Unreasonable search and seizure
Content of Injunction
Preliminary relief granted
General
Access to lawyers or judicial system
Confidentiality
Records Disclosure
Terrorism/Post 9-11 issues
Causes of Action Administrative Procedure Act, 5 U.S.C. §§ 551 et seq.
Defendant(s) Department of Treasury
Office of Foreign Assets Control (OFAC)
Plaintiff Description Plaintiff KindHearts for Charitable Humanitarian Development, Inc. (KindHearts), an Ohio non-profit corporation established in 2002, provided millions of dollars of humanitarian aid internationally, principally towards Palestinians in the West Bank, Gaza, and refugee camps in Lebanon.
Indexed Lawyer Organizations ACLU National (all projects)
Class action status sought No
Class action status granted No
Prevailing Party Plaintiff
Public Int. Lawyer Yes
Nature of Relief Preliminary injunction / Temp. restraining order
Attorneys fees
Injunction / Injunctive-like Settlement
Source of Relief Litigation
Settlement
Form of Settlement Private Settlement Agreement
Order Duration not on record
Case Closing Year n/a
Case Ongoing Yes
Additional Resources
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Links Guest Post: New Resource — Civil Rights Litigation Clearinghouse FISA Archives
Just Security
Posted: Jun. 26, 2014
By: Margo Schlanger
[ Detail ] [ External Link ]

Docket(s)
3:08-cv-02400-JGC (N.D. Ohio) 08/22/2013
NS-OH-0001-9000.pdf | Detail
PACER [Public Access to Court Electronic Records]
General Documents
Complaint 10/09/2008
NS-OH-0001-0002.pdf | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Temporary Restraining Order and Preliminary Injunction 10/09/2008 (N.D. Ohio)
NS-OH-0001-0005.pdf | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Order 08/18/2009 (N.D. Ohio)
NS-OH-0001-0001.pdf | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Order 08/18/2009 (647 F.Supp.2d 857) (N.D. Ohio)
NS-OH-0001-0010.pdf | WESTLAW| LEXIS | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Order 08/19/2009 (594 F.Supp.2d 855) (N.D. Ohio)
NS-OH-0001-0009.pdf | WESTLAW| LEXIS | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Order 10/26/2009 (676 F.Supp.2d 649) (N.D. Ohio)
NS-OH-0001-0003.pdf | WESTLAW| LEXIS | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Order 05/10/2010 (710 F.Supp.2d 637) (N.D. Ohio)
NS-OH-0001-0004.pdf | WESTLAW| LEXIS | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Order 01/12/2012 (N.D. Ohio)
NS-OH-0001-0006.pdf | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Joint Status Report 11/02/2012
NS-OH-0001-0007.pdf | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Status Report 08/20/2013
NS-OH-0001-0008.pdf | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Judges Carr, James G. (FISC, N.D. Ohio) [Magistrate]
NS-OH-0001-0001 | NS-OH-0001-0001 | NS-OH-0001-0003 | NS-OH-0001-0004 | NS-OH-0001-0005 | NS-OH-0001-0006 | NS-OH-0001-0009 | NS-OH-0001-0010 | NS-OH-0001-9000
Monitors/Masters None on record
Plaintiff's Lawyers Abdo, Alex (New York)
NS-OH-0001-0007 | NS-OH-0001-0008 | NS-OH-0001-9000
Bernabei, Lynne (District of Columbia)
NS-OH-0001-0002 | NS-OH-0001-0007 | NS-OH-0001-0008 | NS-OH-0001-9000
Byers, Fritz (Ohio)
NS-OH-0001-0002 | NS-OH-0001-0007 | NS-OH-0001-0008 | NS-OH-0001-9000
Cole, David D. (District of Columbia)
NS-OH-0001-0002 | NS-OH-0001-0007 | NS-OH-0001-0008 | NS-OH-0001-9000
Davis, Carrie L. (Ohio)
NS-OH-0001-0007 | NS-OH-0001-9000
Gamso, Jeffrey M. (Ohio)
NS-OH-0001-0002 | NS-OH-0001-9000
Kabat, Alan R. (District of Columbia)
NS-OH-0001-9000
Shamsi, Hina (New York)
NS-OH-0001-0002 | NS-OH-0001-0007 | NS-OH-0001-9000
Wizner, Ben (New York)
NS-OH-0001-9000
Defendant's Lawyers Buckingham, Stephen J. (District of Columbia)
NS-OH-0001-9000
Powell, Amy E. (District of Columbia)
NS-OH-0001-0007 | NS-OH-0001-9000
Zimmerman, Jonathan Eli (District of Columbia)
NS-OH-0001-9000
Other Lawyers Maloney, Daniel J. (Ohio)
NS-OH-0001-9000
Natarajan, Ranjana (California)
NS-OH-0001-9000

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