Chorzow Factory Case (Germany v. Poland)
Rule established
(1) Reparation must wipe out all consequences of the illegal act and restore the status quo ante. (2) The essential principle is that reparation must, as far as possible, put the injured party in the position it would have been in had the wrongful act not occurred.
Facts
- After WWI, Upper Silesia was divided between Germany and Poland
- Geneva Convention 1922 protected property rights of nationals in ceded territory
- Poland expropriated a German-owned nitrate factory in Chorzow
- Germany brought the claim on behalf of the companies
Issue
- What is the standard and measure of reparation for an internationally wrongful act?
Held
- Poland's seizure was unlawful (violated the Geneva Convention)
- Reparation must wipe out all consequences of the illegal act
- Must restore the state of affairs that would have existed but for the wrongful act
- Includes restitution in kind, or if impossible, payment of value plus consequential damages
Ratio Decidendi
It is a principle of international law that the breach of an engagement involves an obligation to make reparation. 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.
How to use it in an exam
- Foundational authority on reparation in international law
- Cited in every state responsibility question
- Key line: "In the Chorzow Factory Case (1928), the PCIJ held that reparation must wipe out all consequences of the illegal act and re-establish the situation that would have existed but for the wrongful act."
Source
Source: PCIJ Series A, No. 17 (1928)
This is an educational summary, not the judgment itself. Cite the reported version in professional or academic work.