Ruprecht-Karls-Universität Heidelberg Institut für ausländisches und internationales Privat- und WirtschaftsrechtProf. Dr. Dres. h.c. Herbert Kronke The Iran-United States Claims Tribunal: History, Procedure and Applicable Law in a Nutshell Herbert Kronke Arbitrator and Chairman of Chamber III Iran-United States Claims Tribunal The Hague, The Netherlands

Ruprecht-Karls-Universität Heidelberg Institut für ausländisches und internationales Privat- und WirtschaftsrechtProf. Dr. Dres. h.c. Herbert Kronke International Court of Justice

Ruprecht-Karls-Universität Heidelberg Institut für ausländisches und internationales Privat- und WirtschaftsrechtProf. Dr. Dres. h.c. Herbert Kronke International Tribunal for the Law of the Sea ITLOS Photo

Ruprecht-Karls-Universität Heidelberg Institut für ausländisches und internationales Privat- und WirtschaftsrechtProf. Dr. Dres. h.c. Herbert Kronke International Criminal Court

Ruprecht-Karls-Universität Heidelberg Institut für ausländisches und internationales Privat- und WirtschaftsrechtProf. Dr. Dres. h.c. Herbert Kronke International Criminal Tribunal for the former Yugoslavia

Ruprecht-Karls-Universität Heidelberg Institut für ausländisches und internationales Privat- und WirtschaftsrechtProf. Dr. Dres. h.c. Herbert Kronke International Criminal Tribunal for Rwanda

Ruprecht-Karls-Universität Heidelberg Institut für ausländisches und internationales Privat- und WirtschaftsrechtProf. Dr. Dres. h.c. Herbert Kronke Iran-United States Claims Tribunal

Ruprecht-Karls-Universität Heidelberg Institut für ausländisches und internationales Privat- und WirtschaftsrechtProf. Dr. Dres. h.c. Herbert Kronke 4 November 1979: Iranian students occupy the US embassy and take diplomatic staff hostage for 444 days until 20 January November 1979: President Jimmy Carter issues executive order blocking all Iranian funds held in US banks and providing for other economic sanctions Iran-United States Claims Tribunal 19 January 1981: The ‚Algiers Accords‘ (‚General Declaration‘, ‚Claims Settlement Decla- ration): Pursuant to Article II of the CSD the Iran-United States Claims Tribunal is established

Ruprecht-Karls-Universität Heidelberg Institut für ausländisches und internationales Privat- und WirtschaftsrechtProf. Dr. Dres. h.c. Herbert Kronke Iran-United States Claims Tribunal

Ruprecht-Karls-Universität Heidelberg Institut für ausländisches und internationales Privat- und WirtschaftsrechtProf. Dr. Dres. h.c. Herbert Kronke What were both Governments‘ objectives? General Iran De-blocking assets worth around 12 billion USD Lifting of economic sanctions Withdrawal of all claims pending before ICJ and barring all claims of US nationals arising out of ‚events‘ Return of the assets of the family of the former Shah US pledge of non-intervention in Iran‘s internal affairs USA Release of US hostages

Ruprecht-Karls-Universität Heidelberg Institut für ausländisches und internationales Privat- und WirtschaftsrechtProf. Dr. Dres. h.c. Herbert Kronke What were both Governments‘ objectives? Legal aspects Iran Safeguard against claims by US corporations and individuals brought in US and other foreign courts Compensation for losses incurred as a consequence of US governmental action/inaction USA Security for tens of thousands of claims of US corporations and individuals against Iran and Iranian entities and corporations Mechanism: establishement of a security fund required to hold at any time at least 500 million USD Backdrop: uniquely strong economic, financial and military ties of the two countries

Ruprecht-Karls-Universität Heidelberg Institut für ausländisches und internationales Privat- und WirtschaftsrechtProf. Dr. Dres. h.c. Herbert Kronke IUSCT is not an (ordinary) national/domestic court IUSCT is not an international court or tribunal based on a multilateral treaty (such as the ICJ, the ITLOS, the ICC etc.) IUSCT is not an ad hoc arbitral tribunal established for the resolution of one dispute IUSCT is neither a commercial arbitral tribunal nor a tribunal established for the resolution of investment disputes The Tribunal‘s Uniqueness

Ruprecht-Karls-Universität Heidelberg Institut für ausländisches und internationales Privat- und WirtschaftsrechtProf. Dr. Dres. h.c. Herbert Kronke Jurisdiction ratione personae et materiae As provided for in Article II of the Claims Settlement Declaration As established and specified by the Tribunal‘s jurisprudence ratione temporis “claims (and counterclaims) that i.arose prior to 19 January 1981 and were outstanding on that date ii.were filed with the Tribunal by 19 January 1982.” “arguably within the Tribunal’s jurisdiction” Kompetenz-Kompetenz

Ruprecht-Karls-Universität Heidelberg Institut für ausländisches und internationales Privat- und WirtschaftsrechtProf. Dr. Dres. h.c. Herbert Kronke Applicable rules of procedure Basis: the UNCITRAL Arbitration Rules, 1976 Numerous modifications (or merely explanations, provided for in commentaries) addressing the peculiarity of the involvement of two sovereign States (both as Parties to the ‚Algiers Accords‘ and sometimes as parties to a specific dispute brought before the Tribunal for decision

Ruprecht-Karls-Universität Heidelberg Institut für ausländisches und internationales Privat- und WirtschaftsrechtProf. Dr. Dres. h.c. Herbert Kronke Law and rules of law applicable to the merits Article 33 Tribunal Rules 1.The arbitral tribunal shall decide all cases on the basis of respect for law, applying such choice of law rules and principles of commercial andinternational law as the arbitral tribunal determines to be applicable, taking into account relevant usages of the trade, contract provisions and changed circumstances. 2.The arbitral tribunal shall decide ex aequo et bono only if the arbitrating parties have expressly and in writing authorized it to do so. Article 33 UNCITRAL Rules 1.The arbitral tribunal shall apply the law designated by the parties as applicable to the substance of the dispute. Failing such designation by the parties, the arbitral tribunal shall apply the law determined by the conflict of laws rules which it considers applicable. 2.The arbitral tribunal shall decide as amiable compositeur or ex aequo et bono only if the parties have expressly authorized the arbitral tribunal to do so and if the law applicable to the arbitral procedure permits such arbitration. 3.In all cases, the arbitral tribunal shall decide in accordance with the terms of the contract and shall take into account the usages of the trade applicable to the transaction.

Ruprecht-Karls-Universität Heidelberg Institut für ausländisches und internationales Privat- und WirtschaftsrechtProf. Dr. Dres. h.c. Herbert Kronke Further reading Aldrich, The Jurisprudence of the Iran-United States Claims Tribunal (Oxford 1996) Brower/Brueschke, The Iran-United States Claims Tribunal (The Hague 1998) Böckstiegel, Zur Bedeutung des Iran-United States Claims Tribunal für die Entwicklung des internationalen Rechts, in: Festschrift der Rechtswissenschaftlichen Fakultät zur 600-Jahr-Feier der Universität zu Köln (1988) 605 Kronke, Internationales Beweisrecht in der Praxis des Iran- United States Claims Tribunal, in: Jakob/Mäsch/Schmid/Hilbig-Lugani/Reuß (Hrsg.), Festschrift Coester-Waltjen (2015)