13th, CASE CONCERNING THE FACTORY AT CHORZÓWTHE IV. of the proceedings in the various cases concerning the Chorzów factory. The Chorzow Factory Case (, Germany v Poland.) Principle: It is a general principle of law as well as International law, that any breach of agreement. T H E FA C T O R Y AT C H O R Z O W (G E R M A N Y v.P O L A N D) 13 Sept. P.C.I.J. (ser. A) No. 17 TOPIC: Cases on Gener.

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Analysis is made on following given points.

But this question is already dealt with by the decisions of Judgment No. What are reading intentions? It does not involve any right to carry on the activities contemplated in the contract.

Now, it seems clear that this argument can only refer to a plea of set-off raised against the beneficiary by the debtor, of such a nature as to deprive reparation of its effectiveness. A04 Interpretation of Judgment No. On the other hand, the reparation of the loss caused, for instance, by the destruction of a house—whether the person concerned be owner, tenant, or owner of a property in favour of which a servitude exists—, would only cover the value of the rights of the particular person, excluding the rights of every other person.

As regards the Oberschlesische:. The failure of the negotiations resulted in the institution of the present proceedings.

Chorzow Factory Case by Kirstin dela Cruz on Prezi

If there were delay in payment, the damage may be increased by the amount of the loss resulting from such delay ; this loss may either be expressed in terms chorzoe interim interest, or may be estimated by taking into account, 1298 to the circumstances, the balance of the profit and loss which, in all probability, would have accrued between the date of dispossession and the date of judgment.

To cawe a reading intention, click through to any list item, and look for the panel on the left hand side:. It would be difficult to conceive a clearer case of control by the Reich than that of a company of which all the shares, and bearer shares at that, remained in the hands of the Reich which had all the rights of a shareholder in perpetuity, subject only to the possibility of sale if it saw fit, in which case it would receive practically the 192 sale price, these rights of the Reich being limited only by a contractual obligation to maintain in certain hands, and for a certain time, the management of the works owned by the Company.


But the Court is of opinion that this argument is not well-founded. The PCIJ adequately justified its reasoning by bringing all the disputed matters and argument presented before it or by suo moto.

Case Note on The Chorzow Factory ( Germany v Poland, 1928)

No damage of such a nature has been alleged as regards the Oberschlesische, and it seems hardly conceivable that such damage should exist, for the whole activity of the Oberschlesische was concentrated in the undertaking. Whether the court has its jurisdiction over the matter or not?

As regards the Oberschlesische and Bayerische jointly:. The Court is likewise unable to admit this contention. Three fundamental questions arise: The following passage should especially be noted: It appears therefore that the Court decides that it has jurisdiction.

For this purpose, a special section chozow the Company was to be formed which was, to a certain extent, to be subject to the supervision of the Reich, which had the right to a share of the profits resulting from the working of the factory during each financial year. These two points are res judicata: As regards the Bayerische: In the Dase this submission is worded as follows:.

To this obligation, in virtue of the general principles of international law, must be added that of compensating loss sustained as the result of the seizure. The fact that the passages in question in Judgment No. There is no doubt that a joint stock company is very closely bound up with its property ; that is why, for instance, according to the German Commercial Codewhich dase in force both in Germany and in Polish Upper Silesia, a total alienation of the property of a company involves in principle the liquidation of that company.

Which is the fifth reasoning with adequate logic [15] Where the indemnity amount is concerned the court give its reasoning, is the sixth consistent point.

Under the contract, the whole of the factory for the production of nitrated lime, with the accessory installations, situated at Chorzow, was ceded by the Reich to the Oberschlesische at the price of approximately no million marks,—which price was calculated according to certain data indicated in the contract itself,—the Treuhand taking over, in the place of the Oberschlesische, as sole and independent debtor, all the obligations imposed by the contract upon the latter in regard to the Reich, and obtaining in consideration thereof, without payment, shares of the Oberschlesische—to the nominal value of , marks.


It is impossible to take as the date of assessment a date subsequent to dispossession, unless it were the fault of the Respondent that the claim could not be brought earlier before the international tribunal.

It will simply refer to Article 40, paragraph 2, No. The Court, therefore, reserves every right to review the valuations referred to in the different formulae ; basing itself on the results of the said valuations and of facts and documents submitted to it, it factorg then proceed to determine the sum to be awarded to the German Government, in conformity with the legal principles set out above.

The documents in the case show that the German State is working in full collaboration with the Companies, who have evidently supplied all information in order that the proceedings may have chhorzow favourable issue. Setting up reading intentions help you organise your course reading. This point, however, may be left open, since the German Government accepts the jurisdiction of the Court in regard to the question raised in the Chorzlw.

Dissenting Opinion by M. Ehrlich.

For if the Bayerische had demanded a larger sum or additional payments in its favour, or if it had stipulated for other conditions to its advantage, the value to the Oberschlesische of its participation would to the same extent be diminished ; this shows that the relation between value given and value received does not enter into consideration in calculating the worth of the enterprise as a whole.

Whatever the effect of this incidental decision may be as regards the right of ownership under municipal law, it is evident that the fact that the Factoey factory belonged to the Oberschlesische was the necessary condition precedent to the Court’s decision that the attitude of the Polish Government in respect of the Oberschlesische was not in conformity with Article 6 and the following articles of the Geneva Convention.

If Poland is xhorzow succeed in her claim based on Articleit must be before some other tribunal and not this Court.

This claim, therefore, cannot be opposed to the decision contained in Judgment No.