5-4 Dames & Moore v. Regan
Mar 24, 2026
A deep dive into a 1981 Supreme Court fight over freezing Iranian assets and halted lawsuits during the hostage crisis. They retrace the 1953 coup, the Shah’s repression, and Khomeini’s return. The story connects the court’s deference to presidential power with Iran-Contra and broader risks of unchecked executive action.
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How Dames & More Ended Up In Court
- Jimmy Carter froze Iranian assets under the International Emergency Economic Powers Act and ordered related U.S. lawsuits suspended.
- Dames & More sued when their claim was moved to arbitration, triggering the Supreme Court case.
Alleged Reagan Campaign Contact With Iran In Madrid
- The host recounts reporting that Reagan campaign emissaries met Iran in Madrid, possibly coordinating the hostages' release to embarrass Carter.
- This claim suggests partisan interference at the end of the crisis rather than a sudden Reagan foreign-policy triumph.
Court Endorsed Executive Action By Congressional Silence
- The Supreme Court upheld Carter/Reagan's termination of private Iran suits despite the statute not authorizing it.
- The Court relied on historical executive practice and congressional inaction, effectively treating acquiescence as permission.