US Supreme Court Declines to Block $655.5 Million Judgment Against Palestinian Authorities

US Supreme Court Justice Sonia Sotomayor has declined a request by the Palestinian Authority and the Palestine Liberation Organization (PLO) to temporarily halt a $655.5 million damages award while they continue their appeal in a long-running terrorism-related civil lawsuit.

The decision leaves in place a lower court ruling that revived the judgment in favour of American victims and their families over attacks carried out in Israel between 2002 and 2004.

Sotomayor issued the decision on Monday in her role as the justice responsible for handling emergency applications from New York and several other states. She did not provide an explanation for denying the request and did not refer the matter to the full nine-member Supreme Court.

The lawsuit was filed on behalf of American citizens who were killed or injured in a series of shootings and bombings in the Jerusalem area during the early 2000s. In 2015, a federal court in New York awarded the plaintiffs $655.5 million in damages after finding the Palestinian Authority and the PLO liable for the attacks.

That judgment was overturned a year later when the 2nd US Circuit Court of Appeals ruled that the federal court lacked jurisdiction over the case. The Supreme Court declined to review that ruling in 2018.

The legal landscape changed after the US Congress passed the Promoting Security and Justice for Victims of Terrorism Act in 2019. The law expanded the circumstances under which the Palestinian Authority and the PLO could be subject to lawsuits in US courts, including when they engage in certain activities within the United States or make payments connected to individuals involved in attacks against Americans.

The legislation faced legal challenges, with the 2nd Circuit initially ruling that it violated constitutional due process protections. However, the Supreme Court unanimously upheld the law in June 2025, clearing the way for the appeals court to reinstate the original damages award in March this year.

In their latest filing, the Palestinian Authority and the PLO argued that enforcing the judgment before the appeal is resolved would cause serious financial hardship and disrupt essential public services across the occupied West Bank.

Their lawyers said the plaintiffs planned to pursue payment through Palestinian tax revenues collected by Israel, one of the main sources of funding for the Palestinian administration. They warned that security operations, sanitation services and schools were already under severe financial strain and that enforcing the judgment could further undermine stability in the region.

The Palestinian authorities also argued that the original judgment became legally invalid after the appeals process concluded in 2018 and should not have been revived.

The plaintiffs maintain that the reinstated judgment is valid under the 2019 federal law and are seeking to recover damages awarded for the deaths and injuries suffered by American victims during the attacks.

The case remains before the courts as the Palestinian Authority and the PLO continue their appeal against the revived judgment.