Judge defies Carter, orders Iran to pay

Press, 12 July 1980, Page 8

Judge defies Carter, orders Iran to pay

NZPA-Reuter Washington An American Federal judge has ruled that Iran must compensate American insurance companies for losses caused by last year’s nationalisation of the insurance industry. Judge George Hart’s ruling was the first time a court has ruled that Iran must pay American claims from its frozen assets. The American International group, I.N.A. Corporation, and - Continental Corporation had collectively sought $35 million in damages from the Iranian-owned insurance consortium. “Iran has consistently and notoriously failed to honour its duties, responsibilities,

and obligations,” Judge Hart said in rejecting the claims of Iran’s lawyers that the nation would eventually pay compensation. "It is absolutely clear that the Republic of Iran has shown a complete and utter disregard for international law by its seizure and holding of diplomatic hostages for a period exceeding eight months and its disdain of all diplomatic and international efforts to obtain their release,” the judge said in his ruling. President Carter ordered all Iranian assets in the country frozen last November after militants seized the American Embassy in Teheran. There are more than 20(1

claims pending against the Iranian Government in American courts, seeking damages to be paid out of the frozen assets. Government lawyers had asked Judge Hart to delay his ruling, claiming that the President needed to preserve his flexibility in negotiating fo. - the release of the hostages. But Judge Hart brushed aside the argument, saying the Carter Administration had shown ... “great indifference and cavalier treatment of this matter.” The insurance companies have attached some of the frozen Iranian assets, including Iranian paintings on loan to the National Gallery of Art.