The Iran-United States
Claims Tribunal
City of The Hague
Appraisal
The Iran-United States Claims Tribunal constitutes by a wide margin the largest
arbitration ever attempted and the greatest challenge ever faced in the history of
the mechanism - not just on account of the complex nature of the substance matter
or the myriad of procedural intricacies involved. What made the Tribunal epochal
from day one was the overbearing social context: the aura of intense political and
cultural conflict which heralded its birth and the many moments of crisis which it
had to overcome before reaching its current satisfying state of affairs. No-one can
predict when its doors are likely to close, but already the Tribunal is something of a
legend. It has shown that a properly appointed body of arbitrators can cross a minefield of political pitfalls - and come out unscathed, while upholding the rule of law.
Origin
The toppling of the Pahlavi monarchy
by the Islamic Revolution in February
1979 put a dramatic halt to years of
mutually beneficial exchange of
interests between Iran and the USA.
Friction culminated in the surprise
attacks, on 4 and 5 November 1979,
on the American Embassy in Tehran
and its Consulates in Tabriz and
Tribunal met for the first time at the
consular personnel were kept hostage
The Algiers
Accords
in Tehran. The next year, the ICJ at
The crisis was resolved through the
In April of the following year the
The Hague held that Iran incurred
mediation of the Algerian government.
Tribunal moved to its own premises at
State responsibility for these actions.
The Algiers Accords of 19 January
the Parkweg in The Hague. Still, the
In the following months, American
1981 comprised of two Declarations.
Bureau of the PCA has remained at its
official reaction was gradually upgra-
The General Declaration stipulated
disposal at all times.
ded to successively include the discon-
the release of the hostages and the
tinuance of oil purchase, the blocking
lifting of the freeze. The Claims
Composition
of assets and deposits, the discontin-
Settlement Declaration established an
The Claims Tribunal consists of nine
uing of diplomatic relations, economic
International Arbitral Tribunal as the
members. Both Governments involved
sanctions and finally, in April 1980, an
exclusive authority to deal with certain
are entitled to appoint three arbitrators
incursion into Iranian territory in an
types of outstanding claims. On 18
on their own accord, and these six by
abortive attempt to rescue the hostages.
May 1981, the Members of the
mutual consent select the remaining
Shiraz. In the end, 52 diplomats and
Peace Palace under the auspices of
the Permanent Court of Arbitration.
three, the so-called third-country arbitrators. The President of the Tribunal
is appointed by the six nationally
appointed arbitrators from among the
three third-country arbitrators. If the
six nationally appointed arbitrators
cannot agree, the Tribunal’s Appointing
Authority will appoint third-country
arbitrators and the President. The
Tribunal operates either in full, or in
Chambers of three. Chambers consist of
an Iranian and an American arbitrator
and are chaired by a third-country
arbitrator.
Jurisdiction
The Tribunal has jurisdiction over three types of claims:
• claims and counterclaims of US nationals against Iran, and claims and coun
terclaims of Iranian nationals against the US, arising out of debts, contracts,
expropriations or other measures affecting property rights outstanding on the
Awards
date of the Claims Settlement Declaration;
Under the Algiers Declarations,
• official claims that arise out of contractual agreements between the two
nations for the purchase and sale of goods and services (the so-called "B-Cases");
• claims regarding the interpretation or performance of any provision of the
Algiers Declarations (the "A-Cases").
Parties are obligated to secure that the
awards of the Tribunal are treated as
valid and enforceable in their respective
jurisdictions. A unique feature of the
The deadline for the filing of all claims other than interpretation disputes was
Iranian-US claims resolution process
19 January 1982. By that deadline, a total of 3,816 claims were filed, including
is the Security Account that secures
965 "large" claims" (defined as involving US $250,000 or more), 2,782 "small
payment of awards rendered against
claims" (claims of less than US $250,000), and 69 disputes directly between the
Iran. Pursuant to the General
two governments. Claims brought by US or Iranian nationals are heard by one of
Declaration, Iran is obligated to main-
the Tribunal’s Chambers, while most (but not all) intergovernmental claims are
tain this account at the minimum
heard by all nine arbitrators. The expenses of the Tribunal are borne equally by
level of US$ 500 million.
the two Governments.
Procedure
All cases before the Tribunal are decided "on the basis of respect for law". This
may be the principles of commercial law, or the general principles of international
law and including customary law and treaties. The Tribunal conducts its business
in accordance with the UNCITRAL Arbitration Rules, which were modified to the
Tribunal’s specific needs Their application at this large scale has contributed considerably to putting their usefulness to the test.
IUSCT
Assessment
EST.
After an initial period of tension, untimely resignations, and some frustrating
The Iran-United States Claims Tribunal
Origin
International Agreement to arbitrate
specified categories of disputes (1981)
incidents, the Tribunal has functioned in a businesslike manner and with the
support of both Governments. Over the past twenty-seven years, the Tribunal
EU
IGO
UN
NGO
has substantially enriched the law of international arbitration, in particular in
the spheres of rules of evidence, interim measures of protection, lex mercatoria
Status
IGO: in operation for 27 years (2008)
and treaty interpretation. Its jurisprudence on property expropriation, and
compensation has made incisive inroads in customary international law. In
Membership
3 (Iran, United States of America, Algeria)
facing very pertinent dual nationality problems, the criteria it developed to
establish the concept of "dominant and effective nationality" have been highly
illuminating. By now, the Tribunal has arbitrated all private claims. However,
large and sensitive intergovernmental cases, involving billions of dollars, still
remain to be decided. The happy conclusion of the Tribunal will constitute an
P R
Contacts
Administrative Officer
unprecedented moment of triumph for the mechanism of arbitration.
WWW.
Website
www.iusct.org
E-mail
[email protected]
Structure
- Arbitral Tribunal: 9 Members
- Secretariat (registry)
COLOPHON
The Iran-United States Claims Tribunal
Parkweg 13 • 2585 JH The Hague • The Netherlands
Tel : +31 (0)70 352 0064 • Fax : +31 (0)70 350 2456
Even though the utmost care was taken in the development of this brochure, The Hague Municipality and its
administrative organs accept no responsibility for possible errors and omissions, nor for the consequences thereof.
Published by the City of The Hague
Contact: +31 (0)70 3536085
E-mail: [email protected]
June 2008
Copies: 1000
Layout and Editing: Judicap, The Hague
Design and Production: Bruikman & Kok, The Hague
Photography: IUSCT; D-Vorm, Leidschendam; Max Koot
Studio, The Hague