C172 Doc 70.pdf

Iran-United States Claims Tribunal, Case No. 172, Chamber One, Award No. 37-172-1, filed May 10, 1983. Queens Office Tower Associates (QUOTA) claimed against Iran National Airlines Corp. (Iran Air) for unpaid rent under a lease for office space. The lease commenced on November 24, 1979, but Iran Air vacated the premises on June 30, 1980, due to economic sanctions imposed by the US. QUOTA drew on a letter of credit to recoup some of the rent, but claimed additional amounts under the lease. The Tribunal dismissed QUOTA's claim, prompting a dissenting opinion from Howard M. Holtzmann, who argued that the dismissal ignored history, defied reality, and had no basis in international law. The dissenting opinion noted that the lease was governed by New York law, which recognizes frustration of purpose or impossibility of performance as a defense, but only if the event or circumstance is not attributable to the fault of the party alleging frustration.