This morning the U.S. Supreme Court heard oral arguments in Tanzin v. Tanvir. (Transcript of oral arguments) (Audio of oral arguments.) In the case, a 3-judge panel of the 2nd Circuit Court of Appeals held that under the Religious Freedom Restoration Act, a plaintiff may sue federal officials in their individual capacities and may recover monetary damages from them. The holding comes in a lawsuit by three Muslims who claim that their names were placed on the "No Fly List" in retaliation for their refusal to serve as government informants. (See prior posting). The SCOTUSblog case page has links to the briefs of the parties, amicus briefs and other filings in the case.
UPDATE: Deseret News reports on the oral arguments.