Hungarian Aircraft Company Case

Abstract

States as international persons — In general — Recognition of acts of foreign States and govemments — Expropriation without compensation — Effect on assets situated outside the jurisdiction of expropriating State — The law of the Federal Republic of Germany

Jurisdiction — In general — Territorial — Territorial limits of jurisdiction — Expropriation decree — Effect on assets situated outside expropriating State — Territoriality principle — Independent “split company” (Spaltgesellschaft) established outside expropriating State as a result of expropriation — Whether split company liable for debts of expropriated “remainder company” (Restgesellschaft) arising before expropriation — Debt owed to expropriating State — Possibility of obtaining satisfaction from expropriated remainder company — Whether municipal courts may assist in enforcement of debt against split company thereby indirectly furthering expropriation — Relevance of competing creditors — Plea of abuse of rights — The law of the Federal Republic of Germany