Summarized from the daily Morgunblašiš, Jan. 31, 1997:
The Icelandic Supreme Court ruled on Wednesday that the rights of the Hanes couple to contest the seizure of Zenith Elaine Helton were violated by the Ministry of Justice with their handing over of the child to the U.S. Embassy.
The Court stated that the Ministry of Justice's decision to make arrangements for the child had no basis in law. With this decision, the Ministry had "become involved in a matter that would have otherwise been ruled on within a few days."
The case was dismissed on the grounds that situation had already been dealt with in a manner that "made the dismissal unavoidable." The Hanes were awarded 3500 USD to cover their court costs.
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The Hanes were also denied their rights according to the Hague Convention.
From Article 12 of The Hague Convention on the Civil Aspects of International Child Abduction:
Where a child has been wrongfully removed or retained in terms of Article 3 and, at the date of the commencement of the proceedings before the judicial or administrative authority of the Contracting State where the child is, a period of less than one year has elapsed from the date of the wrongful removal or retention, the authority concerned shall order the return of the child forthwith.
The judicial or administrative authority, even where the proceedings have been commenced after the expiration of the period of one year referred to in the preceding paragraph, shall also order the return of the child, unless it is demonstrated that the child is now settled in its new environment.
(Although the Hanes had been residents of Iceland for over one year, they were by no means given any chance to demonstrate that Zenith was indeed settled into her new environment)
From Article 13:
The judicial or administrative authority may also refuse to order the return of the child if it finds that the child objects to being returned and has attained an age and degree of maturity at which it is appropriate to take account of its views.
(Unfortunately, the view of a child of 4 carries absolutely no weight whatsoever).