Factory at Chorzów (Germany v Poland)

The breach of an international obligation involves an obligation to make reparation, which must, as far as possible, wipe out all the consequences of the illegal act and re-establish the situation which would have existed.

Citation
(1928) PCIJ Series A No 17
Court
Permanent Court of International Justice
Year
1928
Subject
Public International Law
Topic
State responsibility, nationality and international organisations

Facts

After the First World War, Poland took over a nitrate factory at Chorzów, in Upper Silesia, which belonged to German companies, in breach of the Geneva Convention of 1922 between Germany and Poland concerning Upper Silesia. The Permanent Court of International Justice had held in an earlier judgment that the taking was unlawful. Germany then claimed compensation on behalf of the companies.

Legal principle

The Permanent Court of International Justice held that Poland was obliged to make reparation. The court said that it is a principle of international law, and even a general conception of law, that any breach of an engagement involves an obligation to make reparation. The essential principle is that reparation must, as far as possible, wipe out all the consequences of the illegal act and re-establish the situation which would, in all probability, have existed if that act had not been committed. This requires restitution in kind, or, if that is not possible, payment of a sum corresponding to the value which restitution in kind would bear, together with damages for loss not covered by restitution. The principle is reflected in the International Law Commission's Articles on State Responsibility.

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This summary is for study and revision and is not legal advice. Although our case summaries are checked for accuracy, we do not guarantee that they are free from errors or omissions. Always read the full judgment for the court's reasoning.

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