Chorzow Factory Case Summary [Oktaviano P] PDF

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Summary

Case summary of Chorzow Factory case...

Description

Oktaviano Putra Dharman 16/397703/HK/21025 Chorzow Factory Case Summary

Summary of Facts

This case is about a violation of an International Agreement known as the “The Chorzow Factory Case”. The question before the Court was whether Poland can be made liable for such violation of an International Agreement

After the First World War, Germany agreed to transfer the control of a region named Upper Silesia area (i.e. Chorzow and Krolweska huta) to Poland. Germany and Poland agreed to a bipartite agreement named Germano-Polish Convention on Upper Silesia (“Geneva Convention”)

Under the Agreement, Both Contracting Parties agreed that Poland would not forfeit any property of Germany. However, Poland forfeited two of German Companies situated at that area.

Claims by Applicant

There are two companies (Oberschlesische Stickstoffwerke and Bayerische Stickstoffwerke Companies). The Polish government is

under an obligation to compensate the damages sustained by the two Companies from July 3rd 1922 until the date of this judgment.

The Polish government is obligated to give compensation arising out of damages amounting to 59.4 million and 16.775 mllion Reichsmarks arising out of two companies.

Poland had an international obligation to pay reparations to Germany as result of the breach of the Geneva Convention. Furthermore, Germany requested compensation arising out of such breach.

1. Whether the PCIJ has jurisdiction over the Dispute?

Legal Dispute

2. Whether there was any violation of the Geneva Convention between Germany and Poland? 3. Whether there was any international obligation on Poland due to breach of the Geneva Convention between Germany and Poland? 4. Could Germany get compensation arising out of the unlawful expropriation conducted by Poland?

Court

Decision

favour of Germany)

(In

1. PCIJ has jurisdiction over the Dispute 2. Poland had violated the Agreement 3. Poland would be liable to repair any loss suffered by Germany due to forfeit of the two Companies as they violated the Geneva Convention. 4. Germany is entitled for compensation arising out of damages caused by Poland. The Tribunal held that Poland conducted an unlawful measure that violates its obligation under the Geneva Convention. For that reason, Germany is entitled to compensation for all financially assesable damages, i.e. direct damages, as well as lost future profits.

Court Reasoning

The Tribunal justified its jurisdiction by virtue of Article 36 PCIJ statute, which states that the Parties under such Convention could go to the PCIJ in all or any of the classes of legal dispute concerning (a) interpretation of a Treaty, (b) the existence of any fact which if established would constitute as an international obligation, and (c) nature or extent of the reparation to be made for the breach of an international obligation.

The Tribunal held that Poland had violated Article 7 of the Geneva Convention and unlawfully expropriated two German factories. Subsequently, it ordered Poland to give compensation for damages because under the general principle of international law, reparation of a wrongful act under international law may consist in compensation corresponding to the damage which the nationals of the injured State have suffered, as a result of the act. Under Article 23 Geneva Convention, Germany is entitled to claim damages in this case. For that reason, Poland then was made liable to give compensation to Germany...