Exclusive:9/11 legal action involving Scottish family to come back before US court

Derek Sword, from Dundee, was among nearly 3,000 victims of the worst terrorist attack in US history when a hijacked passenger plane struck the south tower of New York’s World Trade Centre in September 2001 where his offices were based.

The 29-year-old was a vice-president at Keefe, Bruyette & Woods (KBW), an investment bank. He had moved to New York six years earlier, and had proposed to his partner, Maureen Sullivan, just 17 days before his death.

His family are now seeking to overturn a decision to deny them compensation via the Victims of State Sponsored Terrorism (VSST) fund, which was set up by the US Congress a decade ago.

READ MORE: Family of Scot killed in September 11 terror attacks take legal action against US government

Thousands of loved ones of 9/11 victims have been able to share billions of pounds through the scheme, but the Swords are among a small minority of families who have been refused access, essentially on the basis that neither they nor their loved ones were US citizens at the time of the atrocity.

Derek’s brother, Graeme, previously told The Scotsman this seemed “like bureaucracy and an unfair anomaly”.

“He was living in New York, working for a US firm, engaged to be married, and was going to settle down there,” he said. “He was in exactly the same situation as the US victims, the only difference being the passport he was carrying at that moment in time.”

In September last year, John D Bates, a judge in the US District of Columbia, accepted the Swords and other plaintiffs had “suffered unimaginable tragedies” at the hands of terrorists.

But in his written judgement, he concluded that although the US Congress had empowered the special master of the VSST fund to compensate certain victims of terrorism, it “simultaneously expressly precluded courts from reviewing her decisions”.

As a consequence, he granted a motion by the defendants in the case - the US Department of Justice - to dismiss the civil action due to lack of jurisdiction.

In the wake of that ruling, Bruce Strong, from the law firm Anderson Kill, who is representing the Swords, and other legal representatives of the affected families served a notice to appeal the decision to the US Court of Appeals in the District of Columbia.

Speaking to The Scotsman, Mr Strong said oral arguments on whether the court “has the power to review [the special master’s] determination” will be heard on September 28.

He said: “If we prevail, the court will likely send the case back to the district court for a determination on the merits of whether the fund properly excluded these folks or not.”

Mr Strong added: “I may be biased, but I think we have a strong argument.”

The Swords and other non US nationals who lost loved ones successfully secured court judgments in 2024 against Iran for its role in facilitating the 9/11 attacks by aiding and abetting al Qaeda.

They and their lawyers hoped the development would lead to a breakthrough in their efforts to obtain compensation.

But because of the legislation under which that action was brought, the US Department of Justice told the Swords and other would-be claimants they “do not hold qualifying final judgments” under the rules of the fund.

Speaking ahead of a service of remembrance at St Giles Cathedral in Edinburgh on Friday, First Minister John Swinney paid tribute to those whose lives were “forever changed” by the “unimaginable tragedy” of the attack.

The terrorist attack on the twin towers of the World Trade Centre in New York “shocked the world”, John Swinney said.

Mr Swinney recalled how communities across the world had been impacted by the attack.

The First Minister said: “Today, we remember the thousands of innocent people who lost their lives in the September 11 terrorist attacks.

“These attacks shocked the world and affected communities across the globe, including here in Scotland. My thoughts are with all those whose lives were forever changed by that terrible day, especially the families and friends of those who lost their lives.

“Twenty-five years on, we honour the courage of survivors, families and first responders and pay tribute to the resilience they showed in the face of unimaginable tragedy.”

He added: “Scotland stands with the people of the United States and communities around the world in remembering those who lost their lives. Scotland will always reject terrorism and violent extremism.”

The United States Consulate General Edinburgh is hosting the event at St Giles’ Cathedral at 3pm on Friday, September 11.

The US Consulate General Edinburgh said: “The United States Consulate General Edinburgh invites you to a service of remembrance, commemorating the 25th anniversary of the September 11, 2001, terrorist attacks.

“Please join us to remember those we lost, those who responded with courage and the many lives changed that day.

“Members of the public are kindly asked to arrive in good time to be seated before the service begins. While St Giles’ Cathedral offers generous seating capacity, general admission will be accommodated on a first-come, first-served basis until the venue is full.

“We hope you will join us in this moment of remembrance and solidarity.”