CASE BRIEFS
Sandy Cheng
CASE BRIEFS
Interhandel Case (Switz. v. U.S.), 1959 I.C.J. 6 (Mar. 21) Case Facts
The Interhandel case was brought before the Court by Switzerland on October 2nd, 1957 to declare that the United States was under an obligation to restore its assets which had been vested in the United States from 1942. In 1946, US and Switzerland entered an agreement called the Washington Accord that the US will unblock Swiss assets in the US. Interhandel is a Swiss company entered in the Commercial Register of Basle, but US government thought the company had a connection with Germany. Switzerland claimed there is no German involvement. The US raised the concern of Switzerland’s failure to exhaust the local remedies. Switzerland contended that the proceedings at the local court in the US were based on Trading with the Enemy Act 1917. Switzerland wants assets of Interhandel release and wants the court to declare US to submit this dispute to arbitration based on Washington Accord treaty.
Issues
Whether the Court had jurisdiction to hear the Swiss claim that the United States must restore the assets of the Swiss company, Interhandel, which were seized during World War II, considering the United States' claims that the dispute arose before it had accepted compulsory jurisdiction of the Court.
Whether the Swiss claim was admissible considering that Interhandel had not exhausted local remedies available to it in domestic courts of the United States.
Judgment – majority
The Court declined jurisdiction because Interhandel’s case was still pending in US court, therefore Switzerland had not exhausted US domestic remedies. The Court stated that any distinction, so far as the rule of the exhaustion of local remedies is concerned between the various claims or between the various tribunals, is unfounded. This is because the interest of the local claim was the basis before the ICJ, the local claim had induced Switzerland to institute international proceedings. US declaration of
CASE BRIEFS
Interhandel Case (Switz. v. U.S.), 1959 I.C.J. 6 (Mar. 21) Case Facts
The Interhandel case was brought before the Court by Switzerland on October 2nd, 1957 to declare that the United States was under an obligation to restore its assets which had been vested in the United States from 1942. In 1946, US and Switzerland entered an agreement called the Washington Accord that the US will unblock Swiss assets in the US. Interhandel is a Swiss company entered in the Commercial Register of Basle, but US government thought the company had a connection with Germany. Switzerland claimed there is no German involvement. The US raised the concern of Switzerland’s failure to exhaust the local remedies. Switzerland contended that the proceedings at the local court in the US were based on Trading with the Enemy Act 1917. Switzerland wants assets of Interhandel release and wants the court to declare US to submit this dispute to arbitration based on Washington Accord treaty.
Issues
Whether the Court had jurisdiction to hear the Swiss claim that the United States must restore the assets of the Swiss company, Interhandel, which were seized during World War II, considering the United States' claims that the dispute arose before it had accepted compulsory jurisdiction of the Court.
Whether the Swiss claim was admissible considering that Interhandel had not exhausted local remedies available to it in domestic courts of the United States.
Judgment – majority
The Court declined jurisdiction because Interhandel’s case was still pending in US court, therefore Switzerland had not exhausted US domestic remedies. The Court stated that any distinction, so far as the rule of the exhaustion of local remedies is concerned between the various claims or between the various tribunals, is unfounded. This is because the interest of the local claim was the basis before the ICJ, the local claim had induced Switzerland to institute international proceedings. US declaration of