Originally from Dispute Resolution Journal

INTERNATIONAL-IRAN- U.S. CLAIMS TRIBUNAL- PROPER PARTY TO ARBITRATION

The court affirmed a lower court's determination that a party who had executed and entered into a contract containing an arbitration agreement as a joint obligor and on behalf of a joint venture may be required to arbitrate claims pursuant to that agreement.

TAMS, a New York consulting partnership, and AFFA, an Iranian engineering firm, created an Iranian entity (TAMS- AFFA) to perform services on the Tehran International Airport (TIA) . In August 1975, the principals of TAMS and AFFA entered into a contract with TehranBerkeley, which agreed to perform soil exploration for the TIA project. A dispute arose and Tehran- Berkeley demanded arbitration, seeking payment from TAMS for work performed. TAMS refused to arbitrate and TehranBerkeley petitioned to compel arbitration. The federal district court dismissed the petition, ruling than TAMS was not a party to the contract on the basis that the contract was between Tehran-Berkeley and a "single counter-contracting 'party,' TAMS-AFFA."