Chorzow Factory Case, 1928 PCIJ Ser. A, No.

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FACTS: German Empire had a contract with a company, where that company undertook to establish the
construction of a Nitrate Factory in Chorzow, Upper Silesia.
Subsequently, Germany and Poland signed a convention concerning Upper Silesia of Geneva.
A polish was then delegated with the full powers to take charge of the factory, thus, causing the end of contract
between Germany and the companies.
Germany sued Poland for the latters act of taking possession of the nitrate factory in Chorzow, Upper Silesia
(now part of Poland), and the consequent damages suffered by the 2 German companies, the Oberschlesische
and the Bayerische. Germany sued Poland for reparation.
ISSUE: Whether Poland is bound to protect the property rights of aliens living in its territory
RULING: Yes. Failure to protect aliens property right. Poland has a positive duty to respect and afford
protection to the property rights of aliens living in its territory. In international law, any breach of an
engagement involves an obligation to make reparation.