A suit was filed against Iran (D) in an arbitral tribunal in the Hague by people with dual Iranian-U.S. citizenship (P) under a claim Settlement Declaration, which was part of the Algiers Accords reached in the aftermath of the 1979 Iranian seizure of U.S. diplomatic and consular personnel in Iran (D) as hostages. The jurisdiction of the tribunal was however challenged by Iran.
Synopsis of Rule of Law.
If the dominant and effective nationality of the claimant is that of the United States, then, the Claims Settlement Declaration arbitral tribunal has jurisdiction over claims against Iran by dual Iran-United States nationals.
Facts.
After the 1975 Iranian revolution, Iranian militants seized U.S. diplomatic and consular personnel in Iran (D) as hostages. In retaliation, the United States seized Iranian assets in the United States, and people and companies with claims against Iran (D) filed suit in U.S. courts, levying attachments against blocked Iranian assets. A solution was mediated by Algiers in January 1981 culminating in the Algiers Accord, which was adopted by both states. Included in the provision of the Algiers’s Accords was a Claims Settlement Declaration, and created an arbitral tribunal in The Hague to hear claims by the nationals of either state against the government of the other state. Certain people with dual Iranian-U.S. citizenship (P) brought Iran (D) before the tribunal and the jurisdiction of the tribunal was challenged by Iran (D).
Issue.
If the dominant and effective nationality of the claimant is that of the United States, then, can the Claims Settlement Declaration arbitral tribunal have jurisdiction over claims against Iran by dual Iran-United States nationals?
Held.
If the dominant and effective nationality of the claimant is that of the United States, then, can the Claims Settlement Declaration arbitral tribunal have jurisdiction over claims against Iran by dual Iran-United States nationals?
Discussion.
The tribunal closed to new claims by private individuals in 1982. It received approximately 4,700 private U.S. claims, ordered payment by Iran (D) to U.S. nationals amounting to over $2.5 billion.
