National Petrochemical Co. of Iran v. M/T Stolt Sheaf case brief, 860 F.2d 551 (2d Cir. 1988)

National Petrochemical Co. of Iran v. M/T Stolt Sheaf860 F.2d 551 (2d Cir. 1988)

Procedural History:
Appeal of federal district court dismissal.

Overview:
[An Iranian corporation (P) brought suit as a plaintiff in a U.S. federal court. The district court dismissed the claim because the United States had never extended recognition to the government of the Islamic Republic of Iran. The U.S. government entered the case as amicus curiae, and argued that the Iranian corporation (P) ought to be granted access.]

Issue:
Is a foreign government necessarily barred from access to U.S. courts if it has not been formally recognized by the United States?

Rule:
-A foreign govt. is not necessarily barred from access to U.S. courts if it has not been formally recognized by the U.S.

Analysis:
The case as excerpted does not illustrate the point as clearly as one might hope. But the thrust is that the intervention of the United States as amicus and its arguments in favor of allowing the case to proceed in the U.S. court system were exercises of the power of the executive branch over matters of foreign relations, to which the court deferred.

Outcome:
-A foreign government is not necessarily barred from access to U.S. courts if it has not been formally recognized by the United States. Recognition can occur even where the U.S. government has withheld formal recognition, which it sometimes does where recognition can be misinterpreted as approval. In addition, the Executive Branch has the power to deal with foreign nations outside formal recognition. In this case, relations  between the United States and Iran have been tumultuous. The Executive Branch must therefore have broad discretion involving matters of foreign relations.