Brief Fact Summary. A suit which was brought by an Iranian corporation (P) in a U.S. federal court was dismissed by the district court on the premise that the United States had never extended recognition to the Islamic Republic of Iran. The Iranian corporation was the plaintiff in the case.
Synopsis of Rule of Law. If a foreign government has not been formally recognized by the United States, such foreign government is not necessarily barred from access to U.S. courts.
Issue. If a foreign government has not been formally recognized by the United States, will such foreign government be barred from access to U.S. courts?
Held. No. A suit which was brought by an Iranian corporation (P) in a U.S. federal court was dismissed by the district court on the premise that the United States had never extended recognition to the Islamic Republic of Iran. In a situation where formal recognition have been withheld by the U.S. government, recognition can still occur and this is done at times where recognition can be misinterpreted as approval. In this case, the relation between the two countries has not been smooth. Hence, the Executive Branch, which has the power to deal with foreign nations outside formal recognition, has broad discretion involving matters of foreign relations.
In this vast external realm, with its important, complicated, delicate and manifold problems, the President alone has the power to speak or listen as a representative of the nation.
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