Legal Personality of State-Owned Corporation and Immunity of State-Owned Assets in the Case Concerning “Certain Iranian Assets

In 1976, the United States enacted the Foreign Sovereign Immunity Act (FSIA). The Act disregarded the immunity of States committing terrorism in U.S. courts. On 19 January 1984, the U.S. Ministry of Foreign Affairs designated Iran as a State sponsor of terrorism. In 1996, the Anti-Terrorism and Effective Death Penalty Act (AEDPA) was enacted by the U.S. Congress, which in lawsuits against terrorist States provided for financial compensation. As a result of these Acts, numerous lawsuits have been filed by U.S. nationals and in the U.S. courts against Iran. The U.S. courts sentenced Iran to compensation and confiscation of the Central Bank assets instead of State-owned property. The pleading of the Central Bank to the U.S. judicial authorities during the review and appeal proceedings was not successful and the Central Bank assets were confiscated. On 14 June 2016, Iran filed an application against the U.S. in the ICJ, referring to non-observance of State immunity and violation of the 1955 Treaty. The judgment of the Court on jurisdiction was issued on 13 February 2019. The present article examines this judgment in two areas of legal personality of State-owned corporations and immunity of State-owned assets and concludes that the ICJ, according to its inherent obligation, emphasized on the common intention of the parties as the basis of its jurisdiction.