Mr. A was a national of Country U. He worked in Country X as a consultant for the Country X National

Mr. A was a national of Country U. He worked in Country X as a consultant for the Country X National Railroad (XNRR) from 1980 to 1990. Country X’s government is a radical military dictatorship. While Mr. A was riding on an XNRR train, the train was attacked by a group of terrorists (who like to be called “The Good Guys”). The Good Guys took control of the train, and Mr. A was trapped on board. Rather than attempting to rescue the passengers of the train—including Mr. A—the government strafed the train with military aircraft. The train was destroyed and everyone on board was killed. After receiving a series of complaints from Country U on behalf of the heirs of Mr. A, Country X has agreed that an international tribunal will determine if it (Country X) is liable for Mr. A’s death. How will the tribunal hold? Discuss.

case 2

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MNF, Inc., a large multinational firm incorporated and headquartered in Country C, entered into an investment agreement with Needyland, a small less developed country. MNF agreed to set up a mine to extract copper ore, a refinery, and a plant to manufacture electrical wiring. Needyland agreed to give MNF a 20-year tax holiday (i.e., MNF would not have to pay any local taxes for 20 years). Finally, MNF agreed that “MNF, Inc. will not seek the diplomatic assistance of Country C in resolving any dispute it may have with Needyland.” After MNF completed construction of the mine, refinery, and plant, and just as it began to make a profit on its investment, the government of Needyland changed. The new government enacted a statute that imposed a “nontax operating fee” of 30 percent on the annual earnings of all businesses involved in the mining, refining, or processing of copper. MNF was the only such firm. MNF complained to the new government, with no result, that this “fee” violated its investment agreement. The local courts dismissed MNF’s request for an injunction as baseless. MNF then sought the diplomatic assistance of Country C. Country C and Needyland are parties to an Arbitration Treaty, and they agree to submit the dispute to arbitration. Needyland argues that MNF had no right to seek the diplomatic assistance of Country C and, therefore, Country C has no right to seek compensation from Needyland on behalf of MNF. Is Needyland correct? Discuss.

case 3

The S.S. Rustbucket, an oil tanker flying the flag of State V, a small and very poor developing country, had a terrible leak. As the tanker steamed across the high seas near State W, it discharged some 20,000 barrels of crude oil into a very rich fishing area, killing huge quantities of fish and other aquatic animals. A warship from State W detained the Rustbucket until barges could be brought alongside and all of the oil on the tanker pumped off. The Rustbucket has brought suit in a State W court to recover damages for the loss of its cargo, for the loss of the profits it was to earn, and for being improperly detained on the high seas by a State W warship. The Rustbucket has proven to the court that it was in full compliance with the pollution control regulations of State V. Will the Rustbucket be successful?


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