R. N. Pomeroy v. Government of the Islamic Republic of Iran

Claimants, sole owners of capital stock in Pomeroy Corporation (Pomeroy), a Liberian corporation, filed a claim against respondent, the Government of the Islamic Republic of Iran, before the Iran-United States Claims Tribunal for amounts allegedly due Pomeroy under a contract for the provision of planning, development and administrative services to the Iranian Navy. Respondent challenged the jurisdiction of the Tribunal, contending that claimants could not assert the contract rights of Pomeroy because it was not a national of the United States. In addition, respondent disputed the validity of the contract and, in the alternative, alleged that Pomeroy had breached the contract. Chamber Three rejected the jurisdictional challenge, holding, that since the claimants owned a controlling interest in the corporation, they indirectly owned the claims of the corporation. As U.S. nationals, they were proper parties to assert those claims before the Tribunal. The Chamber also held that a contract existed between the parties and awarded claimants amounts due for services rendered, an estimated amount for lost profits, and interest and costs.