Lump Sum Agreements: Their Continuing Contribution to the Law of International Claims

Abstract

Since there exists no international judicial system to adjudicate international claims in the ordinary course of events, individuals and business enterprises with grievances against a foreign country have looked, both jointly and severally, either to the “espousal” of their claims by their government—a discretionary act guaranteeing no ultimate redress—or, assuming their government has been able to negotiate a compromis with the foreign country involved, to the adjudication of their claims by an ad hoc international tribunal, almost always one without funds from which to pay awards once rendered. However, the volume and complexity of the claims spawned by World War II, the arrival of Marxist governments in Eastern Europe and elsewhere, and the emergence of an economically restless Third World have rendered the espousal process increasingly less effective; and efforts to establish ad hoc international tribunals have been almost uniformly unproductive during the past four decades (the Algerian Accords establishing the Iran-United States Claims Tribunal being the rare exception that proves the general proposition).

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