Starrett Housing Corporation, Starrett Systems Inc and Starrett Housing International Inc v. Government of the Islamic Republic of Iran, Bank Omran, Bank Mellat and Bank Markazi

Title: Starrett Housing Corporation, Starrett Systems Inc and Starrett Housing International Inc v. Government of the Islamic Republic of Iran, Bank Omran, Bank Mellat and Bank Markazi

Description:

349Expropriation — Definition — Taking of property — Iran-United States Treaty of Amity, Economic Relations and Consular Rights, 1955, Article IV(2) — Whether formal act of nationalization required — Creeping expropriation — Appointment of temporary manager to administer company — Owner deprived of right to manage company — Whether a taking of property — Other acts of interference with property — Date of taking — Nature of property expropriated — Physical assets — Intangible property — Ancillary rights — Right to repayment of loans made to company — Interests in property — Whether including indirect ownership of property through foreign subsidiaryExpropriation — Compensation — Standard of compensation — Iran-United States Treaty of Amity, Economic Relations and Consular Rights, 1955, Article IV(2) — Requirement of just compensation based upon full equivalent of property taken — Whether including loss of future profits — Whether distinction between lawful and unlawful expropriationsExpropriation — Compensation — Valuation of expropriated property — Basis of assessment — Fair market price — Price which a willing buyer would pay a willing seller — Reduction in value due to political conditions and government action — Whether conditions to be taken into account — Whether effect on value of anticipation of nationalization relevant — Methods of valuation — Use of discounted cash flow method — Tribunal rejecting elements in Expert’s valuation — Tribunal substituting equitable sumNationality — Corporations — Proof of nationality — Requirement that 50% or more of shares be owned by United States nationals — Proof — Relationship between parent and subsidiary companiesInternational tribunals — Iran-United States Claims Tribunal — Jurisdiction — Ownership of claims — Indirect claims — Claims by United States corporation on behalf of foreign subsidiary — Claim by United States corporation regarding shareholder interest in Iranian corporationInternational tribunals — Iran-United States Claims Tribunal — Use of experts — Expert asked to report on valuation — Weight to be given to Expert’s Report — Role of the Tribunal — The law and practice of the Iran-United States Claims Tribunal.