RCA Globcom Communications, Inc., et al. v. The Islamic Republic of Iran, et al.

In 1974 RCA Globcom Disc, Inc. (RCA) (plaintiff) entered into a contract with Iran (defendant), under which Iran agreed to purchase certain switching equipment for automatic telegraphic services. RCA invoked the force-majeure clause of the contract in 1978, and it later sought damages from Iran for breach of contract by filing an action before the Iran-United States Claims Tribunal in 1981. [Ed.’s note: The Iran-United States Claims Tribunal was formed under the Algiers Accords, under which the United States and Iran agreed that the tribunal would have jurisdiction over all claims between United States nationals and the government of Iran.] While RCA’s claim was pending before the Iran-United States Claims Tribunal, Iranian officials filed an action in the Public Court of Tehran, alleging that RCA had breached the contract and seeking damages from RCA. RCA received a summons to appear before the court in Tehran. RCA filed a motion before the Iran-United States Claims Tribunal seeking a directive to Iran to stay further proceedings against RCA in Tehran. RCA contended that the claims brought before the court in Tehran all arose out of the same contract and issues already pending before the Iran-United States Claims Tribunal. Iran responded by denying that the Iran-United States Claims Tribunal had jurisdiction over the case and asserting that the appropriate forum was in Tehran. In support of its position, Iran argued that the contract between the parties conferred exclusive jurisdiction to the courts of Iran and that the Iran-United States Claims Tribunal was without power to direct a stay of the proceedings in Tehran.