Iran–United States Claims Tribunal
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The Iran–United States Claims Tribunal (IUSCT) is an international
arbitral tribunal An arbitral tribunal or arbitration tribunal, also arbitration commission, arbitration committee or arbitration council is a panel of adjudicators which is convened and sits to resolve a dispute by way of arbitration. The tribunal may consist of ...
established under the
Algiers Accords The Algiers Accords of January 19, 1981 was a set of obligations and commitments undertaken independently by the United States and Iran to resolve the Iran hostage crisis, brokered by the Algerian government and signed in Algiers on January 19, ...
, an agreement between the
United States The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic of 50 U.S. state, states and a federal capital district, Washington, D.C. The 48 ...
and
Iran Iran, officially the Islamic Republic of Iran (IRI) and also known as Persia, is a country in West Asia. It borders Iraq to the west, Turkey, Azerbaijan, and Armenia to the northwest, the Caspian Sea to the north, Turkmenistan to the nort ...
mediated by
Algeria Algeria, officially the People's Democratic Republic of Algeria, is a country in the Maghreb region of North Africa. It is bordered to Algeria–Tunisia border, the northeast by Tunisia; to Algeria–Libya border, the east by Libya; to Alger ...
and formalized through two declarations issued on January 19, 1981. The tribunal was created to address disputes between the two countries stemming from the 1979–1981 Iran hostage crisis and related incidents involving U.S. embassy staff in
Tehran Tehran (; , ''Tehrân'') is the capital and largest city of Iran. It is the capital of Tehran province, and the administrative center for Tehran County and its Central District (Tehran County), Central District. With a population of around 9. ...
.


Background

The tribunal's establishment is rooted in historical tensions between the United States and Iran. These tensions were exacerbated by the 1953 U.S.-backed coup that overthrew the democratically elected government of
Mohammad Mossadegh Mohammad Mosaddegh (, ; 16 June 1882 – 5 March 1967) was an Iranian politician, author, and lawyer who served as the 30th Prime Minister of Iran from 1951 to 1953, elected by the 16th Majlis. He was a member of the Iranian parliament from ...
, followed by Iran's demand for the return of assets taken by the
Shah Shāh (; ) is a royal title meaning "king" in the Persian language.Yarshater, Ehsa, ''Iranian Studies'', vol. XXII, no. 1 (1989) Though chiefly associated with the monarchs of Iran, it was also used to refer to the leaders of numerous Per ...
after the 1979 Iranian Revolution. The U.S. refusal to comply with these demands fueled anti-American sentiment in Iran. On November 4, 1979, a group of Iranian university students stormed the
U.S. embassy in Tehran The Embassy of the United States of America in Tehran (Persian: سفارت آمریکا در تهران) was the United States, American List of diplomatic missions in Iran, diplomatic mission in the Pahlavi Iran, Imperial State of Iran. Direct b ...
, taking 52 American employees hostage for 444 days in an event known as the
Iran hostage crisis The Iran hostage crisis () began on November 4, 1979, when 66 Americans, including diplomats and other civilian personnel, were taken hostage at the Embassy of the United States in Tehran, with 52 of them being held until January 20, 1981. Th ...
. The hostage-takers demanded the
extradition In an extradition, one Jurisdiction (area), jurisdiction delivers a person Suspect, accused or Conviction, convicted of committing a crime in another jurisdiction, into the custody of the other's law enforcement. It is a cooperative law enforc ...
of the Shah in exchange for the hostages' release. In response, the U.S. froze Iranian assets, imposed sanctions, and authorized the seizure of Iranian property within its jurisdiction. To resolve the crisis, Algeria facilitated negotiations, leading to the
Algiers Accords The Algiers Accords of January 19, 1981 was a set of obligations and commitments undertaken independently by the United States and Iran to resolve the Iran hostage crisis, brokered by the Algerian government and signed in Algiers on January 19, ...
. This agreement mandated the release of the hostages and the establishment of an arbitral tribunal to resolve claims arising from the crisis.


Establishment and operations

The IUSCT, headquartered in
The Hague The Hague ( ) is the capital city of the South Holland province of the Netherlands. With a population of over half a million, it is the third-largest city in the Netherlands. Situated on the west coast facing the North Sea, The Hague is the c ...
,
Netherlands , Terminology of the Low Countries, informally Holland, is a country in Northwestern Europe, with Caribbean Netherlands, overseas territories in the Caribbean. It is the largest of the four constituent countries of the Kingdom of the Nether ...
, is composed of nine members: three appointed by Iran, three by the United States, and three neutral arbitrators selected by the parties' appointees. The tribunal began operations on July 1, 1981, and initially operated from the
Peace Palace The Peace Palace ( ; ) is an international law administrative building in The Hague, Netherlands. It houses the International Court of Justice (which is the principal judicial body of the United Nations), the Permanent Court of Arbitration (PC ...
before moving to its permanent premises in The Hague. The tribunal adjudicates claims in accordance with modified
UNCITRAL The United Nations Commission on International Trade Law (UNCITRAL) ( French: ''Commission des Nations Unies pour le droit commercial international (CNUDCI)'') is a subsidiary body of the U.N. General Assembly (UNGA) responsible for helping to f ...
Arbitration Rules. Its jurisdiction includes: * Claims by U.S. nationals against Iran and by Iranian nationals against the United States involving debts, contracts, and property rights. * Official claims between the two governments concerning the purchase and sale of goods and services. * Disputes over the interpretation or implementation of the Algiers Accords.


Jurisprudence and legacy

The tribunal closed to new private claims on January 19, 1982, after receiving over 4,700 submissions. After the establishment of the Iran-US Tribunal under the Algiers Accords, the US and Iran debated how best to deal with the Iranian's frozen assets following the 1979 Revolution. In November 1989, Abraham Sofaer, Legal Adviser to Secretary of State George Shultz, agreed to the release of $567 million of Iranian funds from an account providing for claims by US banks. Of that total, $243 million would be retained for settling remaining claims. This topic was debated for the better of the decade before coming to a resolution. It has ordered payments exceeding $3.5 billion, with approximately $2.5 billion awarded to U.S. nationals and over $1 billion to Iran. As of 2014, all private claims had been resolved, though some intergovernmental disputes remain pending. The IUSCT has been described as “the most significant arbitral body in history” due to its influence on international arbitration, particularly in the fields of investor-state arbitration and state responsibility. Its rulings are binding on both parties and have served as a model for resolving disputes between nations.


Constitutional validation

The tribunal's legitimacy was upheld by the
U.S. Supreme Court The Supreme Court of the United States (SCOTUS) is the highest court in the federal judiciary of the United States. It has ultimate appellate jurisdiction over all U.S. federal court cases, and over state court cases that turn on question ...
in '' Dames & Moore v. Regan'' (1981), which affirmed the constitutionality of the Algiers Accords. U.S. President
Ronald Reagan Ronald Wilson Reagan (February 6, 1911 – June 5, 2004) was an American politician and actor who served as the 40th president of the United States from 1981 to 1989. He was a member of the Republican Party (United States), Republican Party a ...
, who assumed office the day after the Accords were signed, also affirmed his administration’s commitment to the agreement.''Dames & Moore v. Regan'', 453 U.S. 654 (1981)


Personnel


Judges

* Nicolas Michel (president) * H.R. Nikbakht Fini * M.H. Abedian Kalkhoran * Seyed Jamal Seifi * Rosemary Barkett * O. Thomas Johnson *
Christopher Greenwood Sir Christopher John Greenwood (born 12 May 1955) is Master of Magdalene College, Cambridge and a former British judge at the International Court of Justice. Prior to his election, he was professor of international law at the London School of ...
* Herbert Kronke * Bruno Simma


References


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).


External links

* {{DEFAULTSORT:Iran-United States Claims Tribunal Iran–United States relations International arbitration courts and tribunals Organisations based in The Hague