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Keywords

motionsummary judgmentcorporationdue processseizuremotion to dismiss
motionsummary judgmentcorporationdue processseizuremotion to dismiss

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KindHearts for Charitable Humanitarian Development, Inc. v. Geithner

Facts

KindHearts, a Toledo-based non-profit corporation, was incorporated on January 22, 2002, with the goal of providing humanitarian aid. After OFAC froze all of KindHearts' assets on February 19, 2006, pending investigation into its potential designation as an SDGT, the organization alleged that OFAC's actions were unconstitutional. OFAC claimed that KindHearts provided material support to Hamas, leading to the blocking of its assets and a search of its offices.

KindHearts, a Toledo-based non-profit corporation, was incorporated on January 22, 2002, with the goal of providing humanitarian aid. After OFAC froze all of KindHearts' assets on February 19, 2006, pending investigation into its potential designation as an SDGT, the organization alleged that OFAC's actions were unconstitutional.

Issue

Whether OFAC's designation of KindHearts as a specially designated global terrorist and the subsequent blocking of its assets violated the Fourth and Fifth Amendments.

Whether OFAC's designation of KindHearts as a specially designated global terrorist and the subsequent blocking of its assets violated the Fourth and Fifth Amendments.

Rule

The court applied the Fourth Amendment's protection against unreasonable seizures and the Fifth Amendment's guarantee of due process, determining that OFAC's actions were unconstitutional as they lacked probable cause and adequate procedural safeguards.

The court applied the Fourth Amendment's protection against unreasonable seizures and the Fifth Amendment's guarantee of due process.

Analysis

The court found that OFAC's asset block constituted a seizure under the Fourth Amendment, and the exceptions to the warrant requirement did not apply. It ruled that the vagueness challenge to IEEPA was not ripe, but OFAC's authority to block assets pending investigation was unconstitutionally vague as applied. The court also noted that OFAC failed to provide the necessary procedural due process before designating KindHearts as an SDGT.

The court found that OFAC's asset block constituted a seizure under the Fourth Amendment, and the exceptions to the warrant requirement did not apply.

Conclusion

The court granted the government's motion to dismiss in part but also granted KindHearts summary judgment in part, concluding that OFAC's actions violated the Fourth Amendment and denied procedural due process.

The court granted the government's motion to dismiss in part but also granted KindHearts summary judgment in part.

Who won?

KindHearts prevailed in part, as the court found that OFAC seized its assets without probable cause and denied it procedural due process.

KindHearts prevailed in part, as the court found that OFAC seized its assets without probable cause and denied it procedural due process.

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