MTN asks US court to dismiss Turkcell case over Iran licence

News Wireless Iran (Islamic Republic of) 3 JUL 2012
MTN asks US court to dismiss Turkcell case over Iran licence
MTN Group has asked a US court to dismiss the USD 4.2 billion suit brought by Turkcell, which has alleged underhand tactics to obtain its Iranian mobile licence. In a statement, MTN said the suit by Turkcell had no legal merit and that the US court did not have jurisdiction.

Turkcell's claim against MTN in the US is the latest of four legal claims Turkcell has brought after it failed to get the second GSM licence in Iran in 2005. The two cases that have been decided so far were both unsuccessful. MTN contends that Turkcell's US claim is a legally insufficient restatement of a case that Turkcell has already tried and lost.

MTN's motion seeks the dismissal of Turkcell's US claim on the grounds that there is no proper basis for such a claim for three principal reasons. It said the US court does not have jurisdiction over the subject matter of Turkcell's claim, because Turkcell has not alleged a violation of the law of nations as required under US law for the sort of claim Turkcell is seeking to bring in the US.

According to MTN, because Turkcell's arbitration against its former Iranian joint venture partner was recently dismissed by a Paris arbitrage tribunal, Turkcell's US claim should be dismissed as already having been decided against Turkcell. The award precludes the claim now brought by Turkcell against MTN in the US courts for the alleged loss of the licence.

Thirdly, the US court lacks personal jurisdiction over MTN and its subsidiary, MTN International (Mauritius) (MTN International), which is also named in the US action. MTN and MTN International both lack sufficient contact with the US to be subject to the jurisdiction of the US court.

Turkcell is to respond to MTN's motion to dismiss by 01 August and MTN will reply to the Turkcell response by 15 August. The court's decision is expected later in 2012.

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