Iran–United States Claims Tribunal

The Iran–United States Claims Tribunal (IUSCT) is an international arbitral tribunal established by the Algiers Accords, an international agreement between the U.S. and Iran embodied in two Declarations by the Government of the People's Democratic Republic of Algeria issued on 19 January 1981, to resolve the crisis in relations between the two countries arising out of incidents in U.S. embassy in Tehran.[1][2]

Not to be confused with Iran Tribunal.
Building of the IUSCT in The Hague

Affected by United States’ role in 1953 coup d'état which resulted in overthrown of the first-ever democratically elected government of Mohammad Mossadegh, Iranian society hoped a change of behavior in U.S. and demanded return of dethroned Shah and the Iranian assets he had taken with him while fleeing Iran after the 1979 Revolution, all of which the U.S. refrained to do. After multiple gatherings outside the U.S. embassy, on 4 November 1979, a group of university students climbed the walls of the building, seized the premises, and arrested 52 embassy employees working there. They demanded the return of Shah for releasing the staff. In response to events in its embassy, the U.S. froze billions of dollars Iran’s money, imposed sanctions on transactions with Iran, and authorized judicial confiscation of Iranian assets in U.S. soil.

To settle the dispute, senior Algerian officials brokered rounds of negotiations, calling for the release of the Americans and termination of U.S.’s countermeasures. Negotiations between parties wrapped up as two Declarations were issued, part of which established an arbitral tribunal for the settlement of property and contract claims of Iran and United States against each other. The new tribunal is located in The Hague, Netherlands and has been called “the most significant arbitral body in history”. Its decisions are considered binding for both sides. Mark Feldman.pdf

The IUSCT has been called "the most significant arbitral body in history",[3] and its decisions are considered influential in the areas of investor-state arbitration and state responsibility.[4]

History

Both Iran and the U.S. adhered to the final accord. U.S. President Ronald Reagan, who took office the day after the Algiers Accords, affirmed the agreement, and the U.S. Supreme Court upheld its constitutionality in Dames & Moore v. Regan.[5] The Tribunal held its first meeting in the Peace Palace on July 1, 1981, moving to its own premises in The Hague the following year. The Tribunal closed to new claims by private individuals on 19 January 1982, one year after it was established. It received over 4,700 claims and ordered payments totaling over US$3.5 billion; around US$2.5 billion by Iran to U.S. nationals and more than US$1 billion by the U.S. to Iran. [6][7]

As of 2014, all private claims had been resolved, while several intergovernmental claims are still pending.[8][9]

Jurisdiction and procedure

The Tribunal consists of nine members, three appointed by Iran, three by the U.S., and three from third-party countries that are appointed by the other six members. Claims are decided by one of the three Chambers of the Tribunal or by the Full Tribunal if it concerns disputes between the two governments or important questions referred to it by the Chambers. The Tribunal operates largely in accordance with the arbitration rules of the United Nations Commission on International Trade Law (UNCITRAL), albeit with some modifications. Pursuant to the Claims Agreement, the Tribunal has jurisdiction to decide:

  1. Claims of U.S. nationals against Iran and of Iranian nationals against the U.S. that arise from debts, contracts, and other measures affecting property rights;
  2. Certain "official claims" between the U.S. and Iranian governments relating to the purchase and sale of goods and services;
  3. Disputes between Iran and the U.S. concerning the interpretation or performance of the Algiers Declarations.

Personnel

Judges

References
  1. "1. DECLARATION OF THE GOVERNMENT OF THE DEMOCRATIC AND POPULAR REPUBLIC OF ALGERIA (General Declaration)" (PDF). iusct.net. 19 January 1981.
  2. "2. DECLARATION OF THE GOVERNMENT OF THE DEMOCRATIC AND POPULAR REPUBLIC OF ALGERIA CONCERNING THE SETTLEMENT OF CLAIMS BY THE GOVERNMENT OF THE UNITED STATES OF AMERICA AND THE GOVERNMENT OF THE ISLAMIC REPUBLIC OF IRAN (Claims Settlement Declaration)" (PDF). iusct.net. 19 January 1981.
  3. David D. Caron, The Nature of the Iran-United States Claims Tribunal and the Evolving Structure of International Dispute Resolution, University of California at Berkeley (1990), https://scholarship.law.berkeley.edu/cgi/viewcontent.cgi?article=2925&context=facpubs
  4. Bjork, Charles. "Guides: International Investment Law Research Guide: Iran-United States Claims Tribunal". guides.ll.georgetown.edu. Retrieved 2019-06-20.
  5. Dames & Moore v. Regan, 453 U.S. 654 (1981)
  6. "NNews". www.iusct.net. Retrieved 2019-06-20.
  7. "Iran-U.S. Claims Tribunal". United States Department of State. Retrieved 2021-07-13.
  8. "Contact Us". www.iusct.net.
  9. "Iran-U.S. Claims Tribunal". US State Dept.

Further reading
  • American Hostages In Iran: The Conduct of a Crisis (Yale 1985)
  • Revolutionary Days: The Iran Hostage Crisis and the Hague Claims Tribunal, A Look Back (Juris 1996)
  • Mark B. Feldman, Foreign Affairs Oral History Collection, Association for Diplomatic Studies and Training, https://adst.org/OH%20TOCs/Feldman.Mark.pdf
  • Symposium on the Settlement with Iran, March 6–7, 1981, Lawyer of the Americas, U Miami J. Int'l Law (Special Issue, Spring 1981).
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