Amoco International Finance Corporation, Claimantv. Government of the Islamic Republic of Iran, National Iranian Oil Company, National Petrochemical Company and Kharg Chemical Company, Respondents

Abstract

Expropriation — Definition — Taking of property — Whether limited to tangible property — Whether including taking of contractual rights — Iran-United States Treaty of Amity, Economic Relations and Consular Rights, 1955, Article IV(2) — Date of taking — Joint owner effectively excluded from participation in management of company — Whether amounting to expropriation of interest in company

Expropriation — State contracts — Force majeure — Effects — Whether contract terminated — Contractual provisions regarding force majeure — Parties to contract — Contract between State corporation and foreign company — Contract approved by government and legislature of State — Whether State a party

Expropriation — Requirements for lawful expropriation — Compliance with domestic law of expropriating State — Whether a requirement of international law — Discrimination — Whether objective justification for differential treatment — Public purpose requirement — Stabilization clauses — Whether capable of binding State — Right to nationalize

Expropriation — Compensation — Standard of compensation — Distinction between lawful and unlawful expropriations — Concept of full value — Iran-United States Treaty of Amity, Economic Relations and Consular Rights, 1955, Article IV(2) — Whether including lucrum cessans — Concept of ‘going concern value’ — Methods of assessment of compensation — Discounted cash flow method — Net book value

Claims — Exhaustion of local remedies — Applicability of local remedies rule — Iran-United States Claims Tribunal — Whether claimant required to exhaust local remedies before commencing proceedings — Nationality of claims — Requirement that claimants be United States nationals or United States corporations — Claim by United States corporation regarding expropriation of assets of wholly owned Swiss subsidiary

Damages — Measure of damages — Expropriation — Unlawful expropriation — Whether measure of damages for unlawful expropriation to be distinguished from assessment of compensation in case of lawful expropriation

International tribunals — Iran-United States Claims Tribunal — Jurisdiction — Procedure — Award on agreed terms

Treaties — Effect — Whether conferring rights upon individuals — Iran-United States Treaty of Amity, Economic Relations and Consular Rights, 1955, Article IV(2) — Whether Iran-United States Claims Tribunal required to apply standards laid down in Treaty irrespective of whether Treaty confers rights on individuals — Treaty as source of customary international law — The law and practice of the Iran-United States Claims Tribunal