The justices said Monday they will consider overturning a decision by the 9th U.S. Circuit Court of Appeals in San Francisco in the case of Dariush Elahi, who is seeking the money as compensation for the killing of his brother, Cyrus, in Paris in 1990.
French authorities blamed the Iranian government for the killing.
In 2000, Dariush Elahi sued Iran in federal court in Washington. The Iranian government failed to respond to the lawsuit and, after a trial, a judge awarded Elahi $11.7 million in compensatory and $300 million in punitive damages.
When Dariush Elahi accepted $2.3 million from the U.S. government under a law that allows terrorism victims to collect damages from the U.S. Treasury, lawyers for the Bush administration and the Iranian government said he relinquished his claim to the rest of the original judgment.
But the appeals court said that he is entitled to collect another $2.8 million from a California company that owes Iran for a canceled weapons shipment.