Iran-United States Claims Tribunal, Case No. A/18

In 1979, following the Iranian revolution, Iranian militants took as hostages in Iran several United States diplomatic and consular personnel, and other United States nationals. In response, the United States blocked Iranian assets in the United States and undertook an unsuccessful rescue mission. Several United States companies and individuals with claims against Iran filed suit against the country in U.S. courts and levied attachments against blocked Iranian assets. The situation was finally resolved in 1981 when the government of Algeria acted as a mediator between Iran and the United States by adopting the “Algiers Accords.” The Algiers Accords represented various declarations and agreements between both States, and ultimately led to the release of the United States hostages by Iran. It also provided for the return of Iranian assets, and the creation of an arbitral tribunal in The Hague to hear claims by the nationals of either State against the other State’s government, or by one State against the other. One major aspect of the Algiers Accords was a Claims Settlement Declaration between the two States which governed proceedings in the tribunal. A dispute arose over whether, under the Claims Settlement Declaration, the tribunal had jurisdiction over claims against Iran filed during the relevant time period by persons who were both citizens of Iran and the United States, as recognized by the laws of these States.