Armenian Americans sue Turkish government, banks over Genocide losses

by Emil Sanamyan

Published: Saturday July 31, 2010

At a May 11, 2006, press conference, attorney Mark Geragos, California State Treasurer Phil Angelides, and attorneys Brian Kabateck and Vartkes Yeghiayan announce a class action lawsuit on behalf of descendants of Armenian Genocide victims, against Deutsche Bank and Dresdner Bank for assets belonging to descendants of Armenian Genocide victims. Damian Dovarganes / AP

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Washington - Lawyers who have helped secure multi-million dollar settlements over Genocide-era insurance policies have launched an unprecedented lawsuit against Turkish government and banks, Associated Press reported.

In paperwork filed July 29, Los Angeles lawyers Mark Geragos and Brian Kabateck are seeking class-action status for the suit that would compensate descendants of victims of the Armenian Genocide for financial and property losses they suffered.

Original plaintiffs include Garbis Davoyan of Glendale, Calif. and Hrayr Turabian of Queens, N.Y., and others are expected to join the suit that charges breach of statutory trust, unjust enrichment, human rights violations and violations of international law as the Turkish government expelled its Armenian citizens and ceased their properties.

Defendants

Turkey's government along with its Central Bank and Ziraat (Agriculture) Bank, Turkey's biggest bank, are named as defendants.

Ziraat Bank was established in 1863 and operated continuously since. It currently has assets of more than $81 billion and branches in Moscow and throughout Central Asia.

Established in 1931, Turkey's Central Bank took over central banking operations from the Ottoman Bank which itself was established in 1856.

Since 1930s, the Ottoman Bank operated as a private bank until it was incorporated into Garanti Bank, currently Turkey's second largest bank with $78 billion in assets.

A long process

The suit designation may take up to three years, Mr. Kabateck told AP. "We are rolling up our sleeves and are going forward," he said.

Turkish officials have not yet reacted to the lawsuit.

In 2000, California state law allowed heirs to Genocide victims to seek payment on uncollected life insurance policies of dead relatives, opening the way to lawsuits.

In 2004 and 2005, New York Life Insurance Co. and French insurer AXA settled for a total of $37.5 million paid to Armenian community organizations.

But in 2009, as it weighed another insurance case against several German insurers, the 9th U.S. Circuit Court of Appeals invalidated the state law on the grounds that it interfered with U.S. foreign policy.

An appeal by Armenian American lawyers is currently pending in that case.