Cubic's dispute with Iran goes back to 1977, when it entered into a contract to sell and service an Air Combat Maneuvering Range for use by the Iranian Air Force. Like other military items, however, the system went undelivered after the Iranian revolution of 1979. The ICC awarded compensation to the Ministry of Iran. The Ministry subsequently filed a motion for prejudgment interest covering the pweiod between the ICC's final award and the district court's confirmation. The district court held that the ICC's arbitral award was valid but denied the motion for attorneys fees and prejudgment interest. The United States has a strong public policy toward the confirmation of foreign arbitration awards that outweighs current restrictive trade policies with Iran. Also, prejudgment interest and legal fees are available in an arbitration confirmation award under the Convention on the Recognition and Enforcement of Foreign Arbitral Awards.
Megan Hill, United States Supports Iranian Arbitration Over Public Policy Against Transacting with Iran, 4 343 (2012).