State responsibility
This declaration is in accordance with the request made by Albania
through her Counsel, and is in itself appropriate satisfaction.592
This has been followed in many subsequent cases.593
However, while the making of a declaration by a competent court or tribunal may be treated as a form of satisfaction in a given case, such declarations are not intrinsically associated with the remedy of satisfaction. Any
court or tribunal which has jurisdiction over a dispute has
the authority to determine the lawfulness of the conduct
in question and to make a declaration of its findings, as
a necessary part of the process of determining the case.
Such a declaration may be a preliminary to a decision
on any form of reparation, or it may be the only remedy
sought. What the Court did in the Corfu Channel case was
to use a declaration as a form of satisfaction in a case
where Albania had sought no other form. Moreover, such
a declaration has further advantages: it should be clear
and self-contained and will by definition not exceed the
scope or limits of satisfaction referred to in paragraph 3
of article 37. A judicial declaration is not listed in paragraph 2 only because it must emanate from a competent
third party with jurisdiction over a dispute, and the articles
are not concerned to specify such a party or to deal with
issues of judicial jurisdiction. Instead, article 37 specifies
the acknowledgement of the breach by the responsible
State as a modality of satisfaction.
(7) Another common form of satisfaction is an apology,
which may be given verbally or in writing by an appropriate official or even the Head of State. Expressions of
regret or apologies were required in the “I’m Alone”,594
Kellett595 and “Rainbow Warrior”596 cases, and were offered by the responsible State in the Consular Relations597
and LaGrand598 cases. Requests for, or offers of, an apology are a quite frequent feature of diplomatic practice and
the tender of a timely apology, where the circumstances
justify it, can do much to resolve a dispute. In other circumstances an apology may not be called for, e.g. where
a case is settled on an ex gratia basis, or it may be insufficient. In the LaGrand case the Court considered that “an
apology is not sufficient in this case, as it would not be in
other cases where foreign nationals have not been advised
without delay of their rights under article 36, paragraph
1, of the Vienna Convention and have been subjected to
prolonged detention or sentenced to severe penalties”.599
592
Corfu Channel, Merits (see footnote 35 above), p. 35, repeated in
the operative part (p. 36).
593 For example, “Rainbow Warrior” (see footnote 46 above),
p. 273, para. 123.
594 See footnote 590 above.
595 Moore, Digest, vol. V, p. 44 (1897).
596 See footnote 46 above.
597 Vienna Convention on Consular Relations (Paraguay v. United
States of America), Provisional Measures, Order of 9 April 1998,
I.C.J. Reports 1998, p. 248. For the text of the United States’ apology,
see United States Department of State, Text of Statement Released in
Asunción, Paraguay; Press statement by James P. Rubin, Spokesman,
4 November 1998. For the order discontinuing proceedings of
10 November 1998, see I.C.J. Reports 1998, p. 426.
598 See footnote 119 above.
599 LaGrand, Merits (ibid.), para. 123.
107
(8) Excessive demands made under the guise of “satisfaction” in the past600 suggest the need to impose some
limit on the measures that can be sought by way of satisfaction to prevent abuses, inconsistent with the principle
of the equality of States.601 In particular, satisfaction is
not intended to be punitive in character, nor does it include punitive damages. Paragraph 3 of article 37 places
limitations on the obligation to give satisfaction by setting
out two criteria: first, the proportionality of satisfaction to
the injury; and secondly, the requirement that satisfaction
should not be humiliating to the responsible State. It is
true that the term “humiliating” is imprecise, but there are
certainly historical examples of demands of this kind.
Article 38. Interest
1. Interest on any principal sum due under this
chapter shall be payable when necessary in order to
ensure full reparation. The interest rate and mode of
calculation shall be set so as to achieve that result.
2. Interest runs from the date when the principal
sum should have been paid until the date the obligation to pay is fulfilled.
Commentary
(1) Interest is not an autonomous form of reparation,
nor is it a necessary part of compensation in every case.
For this reason the term “principal sum” is used in article 38 rather than “compensation”. Nevertheless, an
award of interest may be required in some cases in order
to provide full reparation for the injury caused by an internationally wrongful act, and it is normally the subject
of separate treatment in claims for reparation and in the
awards of tribunals.
(2) As a general principle, an injured State is entitled
to interest on the principal sum representing its loss, if
that sum is quantified as at an earlier date than the date
of the settlement of, or judgement or award concerning,
the claim and to the extent that it is necessary to ensure
full reparation.602 Support for a general rule favouring the
award of interest as an aspect of full reparation is found in
international jurisprudence.603 In the S.S. “Wimbledon”,
PCIJ awarded simple interest at 6 per cent as from the
date of judgment, on the basis that interest was only payable “from the moment when the amount of the sum due
600 For example, the joint note presented to the Chinese Government
in 1900 following the Boxer uprising and the demand by the Conference of Ambassadors against Greece in the Tellini affair in 1923: see
C. Eagleton, op. cit. (footnote 582 above), pp. 187–188.
601 The need to prevent the abuse of satisfaction was stressed by early
writers such as J. C. Bluntschli, Das moderne Völkerrecht der civilisirten Staten als Rechtsbuch dargestellt, 3rd ed. (Nördlingen, Beck,
1878); French translation by M. C. Lardy, Le droit international codifié,
5th rev. ed. (Paris, Félix Alcan, 1895), pp. 268–269.
602 Thus, interest may not be allowed where the loss is assessed in
current value terms as at the date of the award. See the Lighthouses
arbitration (footnote 182 above), pp. 252–253.
603 See, e.g., the awards of interest made in the Illinois Central Railroad Co. (U.S.A.) v. United Mexican States case, UNRIAA, vol. IV
(Sales No. 1951.V.1), p. 134 (1926); and the Lucas case, ILR, vol. 30,
p. 220 (1966); see also administrative decision No. III of the United
States-Germany Mixed Claims Commission, UNRIAA, vol. VII (Sales
No. 1956.V.5), p. 66 (1923).