ESLSCA Business School

International Business Law

Assignment #2
The Trail Smelter Arbitration
08/03/2014

Presented to :
Dr. Ahmed F. Khalifa


Presented by Group #1 :
Ahmad Sami
Ahmed Dawood
Diaa Abdel Rahman
Noha Assem
Rabab Badr
Wessam Foaad
42-C
Saturday Class
Heliopolis




FIRAC
The Trail Smelter Arbitration

United Sates Vs. Canada
Arbitral Tribunal ,1941
Agenda

Facts
Issue
Rules
Application
Conclusion

Facts:
A Canadian company built a lead & zinc smelting plant at Trail, British
Columbia, 10 miles north of the state of Washington border.

In 1928, US & Canada agreed on Boundary Waters Treaty of 1909

By 1930, more than 300 tons of sulfur, including large quantities of
sulfur dioxide was emitted daily.

Emissions were carried down the Columbia river causing damage to land
and other property in Washington.
Facts Rule Issue Application Conclusion
Facts:
In 1931, Canada paid $ 350,000 for damages reported by the
commissions Arbitral Tribunal. Canada did not dispute its liability, but
the smelter continues to operate.

In 1938, the tribunal grants $ 78,000 to USs claim that the plant has
caused damages up to $ 2 Million

In 1941, The United states required to have the operation of the smelter
enjoined.

At the time of the arbitration , Tribunal did not manage any case of air
pollution , nearest analogy was for air pollution

No decision of an international tribunal has been found

Facts Rule Issue Application Conclusion
Issues:
Whether the plant should be closed to refrain from further damage
to the state of Washington and, if so, to what extent?

Whether damages caused by the Trail Smelter in the state of
Washington occurred since the first day of January, 1932, and if so,
what compensation should be paid therefore.

In accordance to the previous questions, what measures should be
taken by the Trail Smelter?

What compensation should be paid?

Which Law should be followed united states or international Law?


Facts
Rule Issue Application Conclusion
Rules:
Under the principals of united states & International Law
No state has the right to use or permit the use of its territory in
such a manner as to cause injury by fumes in or to the territory of
another or the properties or persons therein, when the case is of
serious consequences and the injury is established by clear and
convincing evidence
Report of the united nations conference on environment and
development
states have , in accordance with the charter of united nations and
the principal of international law , the sovereign right to exploit
their own resources pursuant to their own environmental and
developmental policies , and the responsibility to ensure that
activities within their jurisdiction or control dont cause any
damage to the environment of other states or areas beyond the
limit of national jurisdiction


Facts Rule Issue Application Conclusion
Rules:
Supreme court of the US As a guide
Regarding both air pollution and water pollution , certain decision
of US supreme count may be taken as a guide in this filed in
international law

Similar cases:
Territorial relation between Cantons of soleure & Argovia , Federal
court of Switzerland

Facts Rule Issue Application Conclusion
Application:
Tribunal finds this problem need to be solved here as the law
followed in US in dealing with quasi-sovereign rights of the states
of union .In the matter of air pollution ,even as more definite is in
conformity with the general rules in international law

The Smelter had caused sufficient damages to Washington thus
violating state rights.

Canada is responsible for the damages caused by the Smelter.

Facts Rule Issue Application Conclusion
Conclusion:
The tribunal found that the smelter has caused damages
The smelter shall pay US $ 78,000 for compensation
The smelter shall refrain from causing any more damages to the US
Damages referred to and its extent being such as would be
recoverable under the decisions of the courts of US in suits
between private individuals
The compensation for such damage should be fixed in such manner
as government acting under article XI of the convention


Facts Rule Issue Application Conclusion
Thank You
Thank you..
Any questions ?