Nakajima, Okada, & Nisugi: The sovereign function test out of thin air? The status of the central bank determined behind the scenes in Certain Iranian Assets

Kei Nakajima (Univ. of Tokyo - Law), Yohei Okada (Kobe Univ. - Law), & Kento Nisugi (Osaka Univ. - Law) have posted The sovereign function test out of thin air? The status of the central bank determined behind the scenes in Certain Iranian Assets (Journal of International Dispute Settlement, forthcoming). Here's the abstract:

On 30 March 2023, the International Court of Justice rendered its judgment on the merits of the case concerning Certain Iranian Assets, in which the Iranian central bank was not characterized as a company within the meaning of the Treaty of Amity. In so concluding, the Court relied upon the test focusing on the central bank’s sovereign functions and the purposes of the transaction at stake. Debate surrounds the origin and sources of inspiration of the sovereign function test, insofar as the majority’s minimum reasoning leaves an impression that it arose from thin air. This article explores the origin and the sources of inspiration of the test, concluding that the Court’s judgment affords the reading that the test was inspired, albeit clandestinely, by rules and practice specifically dedicated to the characterization of central bank activities, located in areas such as the laws of State immunity or responsibility, by judicial cross-referencing.