1989

US

Ministry of Defence of Iran v Gould Inc 969 F2nd 764 Court of Appeal

A US company concluded a contract with the Iranian Ministry of Defence to supply radio equipment. Because of the revolution, the performance was interrupted. The company claimed damages for breach of contract, Iran without denying the breach alleged that the company has been over paid, the I US CTR order the company to pay $3.6 million. Iran sought enforcement in the US and the Company instituted an appeal arguing that there was not jurisdiction to enforce the award according to NYC: 1. Convention II, IV only applicable to arbitral awards issued pursuant to a voluntary written arbitration agreement between the parties 2. Convention V.1, implicitly requires that awards were made in accordance with the national arbitration law of a signatory states. The award was made under IL

1. Dames and Moore v Reagan established that the US president could conclude international claims settlements on behalf the US. Accordingly the requirement of a written arbitration agreement was satisfy by the Accords which constituted a written agreement on behalf of the US nationals with Iran 2. The convention did not require an award to be based on the national arbitration law of a signatory State in order to be enforceable. This is consistent with the purpose of the convention which allowed the parties the option of not having their arbitration governed by a particular national law