the trail smelter arbitration - v2

ESLSCA Business SchoolInternational Business Law

Assignment #2The Trail Smelter Arbitration

08/03/2014

Presented to :Dr. Ahmed F. Khalifa

Presented by Group #1 :Ahmad Sami

Ahmed DawoodDiaa Abdel Rahman

Noha AssemRabab Badr

Wessam Foaad42-C

Saturday ClassHeliopolis

FIRAC The Trail Smelter

Arbitration United Sates Vs. CanadaArbitral Tribunal ,1941

Agenda

FactsIssueRules ApplicationConclusion

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 Water’s 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 RuleIssue 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 US’s 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


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?


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 don’t cause any damage to the environment of other states or areas beyond the limit of national jurisdiction”


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


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.


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


Thank YouThank you…..

Any questions ?

the trail smelter arbitration - v2

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