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Citation. I.C.J. 1970 I.C.J. 3.
Brief Fact Summary. An actions for damages against Spain (D) on the premise that its nationals as shareholders of the Barcelona Traction Co., incorporated and registered in Canada had been seriously harmed by Spain’s (D) actions resulting in expropriation, was brought by Belgium (P).
Synopsis of Rule of Law. The state of the shareholders of a corporation has a right of diplomatic protection only when the state whose responsibility is invoked is the national state of the company.
Issue. Does the state of the shareholders of a company have a right of diplomatic protection if the state whose responsibility is invoked is not the national state of the company?
Held. Does the state of the shareholders of a company have a right of diplomatic protection if the state whose responsibility is invoked is not the national state of the company?
Discussion. As stated in the Restatement of the Foreign Relations Law of the United States S 185, failure of a state to pay just compensation for the taking of the property of an alien is wrongful under international law, regardless of whether the taking itself is conceived as wrongful. This wrongful taking is characterized either as tortious conduct or as unjust enrichment.