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.
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.
Related cases on state responsibility, nationality and international organisations
- Application of the Convention on the Prevention and Punishment of the Crime of Genocide (Bosnia and Herzegovina v Serbia and Montenegro) (2007) ICJ Reports 43
- Barcelona Traction, Light and Power Co Ltd (Belgium v Spain) (1970) ICJ Reports 3
- Corfu Channel Case (United Kingdom v Albania) (1949) ICJ Reports 4
- Gabčíkovo-Nagymaros Project (Hungary v Slovakia) (1997) ICJ Reports 7
- Military and Paramilitary Activities in and against Nicaragua (Nicaragua v United States) (1986) ICJ Reports 14
- Nottebohm Case (Liechtenstein v Guatemala) (1955) ICJ Reports 4
- Reparation for Injuries Suffered in the Service of the United Nations (1949) ICJ Reports 174
- United States Diplomatic and Consular Staff in Tehran (United States v Iran) (1980) ICJ Reports 3
Studying public international law? Our tutors help you understand and apply cases like this in essays, problem questions and exams. Request a quote or browse our law notes.
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.
