Ruprecht-Karls-Universität Heidelberg Institut für ausländisches und internationales Privat- und WirtschaftsrechtProf. Dr. Dres. h.c. Herbert Kronke The.

Ruprecht-Karls-Universität Heidelberg

Institut für ausländisches und internationales Privat- und Wirtschaftsrecht Prof. Dr. Dres. h.c. Herbert Kronke

The Iran-United States Claims Tribunal:History, Procedure and Applicable Law

in a Nutshell

Herbert KronkeArbitrator and Chairman of Chamber III

Iran-United States Claims TribunalThe Hague, The Netherlands



International Court of Justice



International Tribunal for the Law of the Sea

ITLOS Photo



International Criminal Court



International Criminal Tribunalfor the former Yugoslavia



International Criminal Tribunalfor Rwanda



Iran-United States Claims Tribunal



• 4 November 1979: Iranian students occupy the US embassy and take diplomatic staff hostage for 444 days until 20 January 1981

• 14 November 1979: President Jimmy Carter issues executive order blocking all Iranian funds held in US banks and providing for other economic sanctions


• 19 January 1981: The ‚Algiers Accords‘ (‚General Declaration‘, ‚Claims Settlement Decla-ration): Pursuant to Article II of the CSD the Iran-United States Claims Tribunal is established






What were both Governments‘ objectives?

General

Iran• De-blocking assets worth

around 12 billion USD• Lifting of economic sanctions• Withdrawal of all claims

pending before ICJ and barring all claims of US nationals arising out of ‚events‘

• Return of the assets of the family of the former Shah

• US pledge of non-intervention in Iran‘s internal affairs

USA• Release of US hostages



What were both Governments‘ objectives?

Legal aspects

Iran• Safeguard against claims by US

corporations and individuals brought in US and other foreign courts

• Compensation for losses incurred as a consequence of US governmental action/inaction

USA• Security for tens of thousands

of claims of US corporations and individuals against Iran and Iranian entities and corporations

• Mechanism: establishement of a security fund required to hold at any time at least 500 million USD

Backdrop: uniquely strong economic, financial and military ties of the two countries



• IUSCT is not an (ordinary) national/domestic court

• IUSCT is not an international court or tribunal based on a multilateral treaty (such as the ICJ, the ITLOS, the ICC etc.)

• IUSCT is not an ad hoc arbitral tribunal established for the resolution of one dispute

• IUSCT is neither a commercial arbitral tribunal nor a tribunal established for the resolution of investment disputes

The Tribunal‘s Uniqueness



Jurisdiction

ratione personae et materiae• As provided for in Article II of

the Claims Settlement Declaration

• As established and specified by the Tribunal‘s jurisprudence

ratione temporis“claims (and counterclaims) that

i. arose prior to 19 January 1981 and were outstanding on that date

ii.were filed with the Tribunal by 19 January 1982.”

“arguably within the Tribunal’s jurisdiction”

Kompetenz-Kompetenz



Applicable rules of procedure

• Basis: the UNCITRAL Arbitration Rules, 1976

• Numerous modifications (or merely explanations, provided for in commentaries) addressing the peculiarity of the involvement of two sovereign States (both as Parties to the ‚Algiers Accords‘ and sometimes as parties to a specific dispute brought before the Tribunal for decision



Law and rules of law applicable to the merits

Article 33 Tribunal Rules1. The arbitral tribunal shall decide all cases

on the basis of respect for law, applying such choice of law rules and principles of commercial andinternational law as the arbitral tribunal determines to be applicable, taking into account relevant usages of the trade, contract provisions and changed circumstances.

2. The arbitral tribunal shall decide ex aequo et bono only if the arbitrating parties have expressly and in writing authorized it to do so.

Article 33 UNCITRAL Rules1. The arbitral tribunal shall apply the law

designated by the parties as applicable to the substance of the dispute. Failing such designation by the parties, the arbitral tribunal shall apply the law determined by the conflict of laws rules which it considers applicable.

2. The arbitral tribunal shall decide as amiable compositeur or ex aequo et bono only if the parties have expressly authorized the arbitral tribunal to do so and if the law applicable to the arbitral procedure permits such arbitration.

3. In all cases, the arbitral tribunal shall decide in accordance with the terms of the contract and shall take into account the usages of the trade applicable to the transaction.



Further reading

Aldrich, The Jurisprudence of the Iran-United States Claims Tribunal (Oxford 1996)

Brower/Brueschke, The Iran-United States Claims Tribunal (The Hague 1998)

Böckstiegel, Zur Bedeutung des Iran-United States Claims Tribunal für die Entwicklung des internationalen Rechts, in: Festschrift der Rechtswissenschaftlichen Fakultät zur 600-Jahr-Feier der Universität zu Köln (1988) 605

Kronke, Internationales Beweisrecht in der Praxis des Iran-United States Claims Tribunal, in: Jakob/Mäsch/Schmid/Hilbig-Lugani/Reuß (Hrsg.), Festschrift Coester-Waltjen (2015)

Ruprecht-Karls-Universität Heidelberg Institut für ausländisches und internationales Privat- und WirtschaftsrechtProf. Dr. Dres. h.c. Herbert Kronke The.

Documents

tribunal folie

herbert kronke iusct

claims of us corporations

claims of us nationals

rwanda folie

yugoslavia folie

countries folie

netherlands folie