The Bathori
| Jurisdiction | UK Non-devolved |
| Judgment Date | 03 November 1933 |
| Docket Number | Case No. 51 |
| Court | Privy Council |
State Succession — Effect on Private Rights — Cession of Territory — Power to Bind Inhabitants of Ceded Territory after Territory has Ceased to be under the Effective Authority of the Ceding State.
Cession of Territory — Power to Bind Inhabitants of Ceded Territory After It Has Ceased to be Under the Effective Authority of the Ceding State.
War at Sea — Hague Convention No. VI — Sinking of Enemy Vessel Provided with Safe-Conduct.
The Facts.—The Bathori was a steamer owned by a Hungarian company and sailing under an Allied safe-conduct. In September 1914 she was captured and sunk (after removal of the crew) by a British cruiser, the captain of the cruiser having formed the erroneous opinion that she had violated her safe-conduct. At the trial it was not disputed that the sinking was unlawful, and the only question was whether the owners were entitled to compensation.
At the date of the Treaty of Trianon (June 4, 1920) Fiume was under the control of Gabriele d'Annunzio. From 1921 to 1924 it became a “free state,” but in 1924 it was annexed to Italy by the Treaty of Rapallo, and by the terms of the Treaty the claimant Company acquired Italian nationality. The Company had been domiciled in Fiume since April 1920.
Held (by Lord Merrivale): that compensation was not payable. The case was governed by Article 53 of the Treaty of Trianon, whereby Hungary ceded all her rights over Fiume and agreed to accept any decision which the Allies might make as to its status. By Article 232 of the same Treaty Hungary renounced all claims which might be made by Hungarian subjects arising out of injuries done to them by the Allies. The learned Judge found that, apart from these articles, the claimants would have been entitled to compensation on the following grounds: (a) Violation of safe-conduct. The owner was entitled to have it respected for the time being. The right to compensation and restitution on account of violation of safe-conduct was clearly established (the judgments of Sir William Scott in The ActeonENR, 2 Dods. 48, 51, and of Dr. Lushington in The Troija, (1854) 1 Spink, 342, and The Phoenix, (1854) 1 Spink, 306, were cited). (b) Article 1 of Hague Convention No. VI, which provided that, when a merchant ship belonging to one of the belligerent Powers is at the commencement of hostilities in an enemy port, it is desirable that she should be...
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