Rieber v Kutzer et Cie of Teschen

• Jurisdiction: Polonia
• Date: 20 February 1931
• Docket Number: Case No. 37
• Court: Court of Cassation (Poland)

Roumania, Court of Cassation, Third Division.

Case No. 37

Rieber

and

Kutzer et Cie. of Teschen (Czechoslovakia).

Disputes Retorsion Currency Regulations Roumania and Czechoslovakia.

State Succession Miscellaneous Private Rights Pre-War Debt Changes in Currency Payment by Roumanian Debtor in Roumanian Currency Retorsion.

The Facts.In 1914 the defendant, who was domiciled in Cernautzi (Bukovina, then part of Austria), contracted with a firm in Teschen (then in Austria), to purchase a quantity of paper, for which payment was to be made in Austro-Hungarian currency at the domicile of the vendor. Subsequently, Teschen became part of Czechoslovakia and Cernautzi became part of Roumania. The vendor claimed payment in Czechoslovak currency or, failing that, in Roumanian leis according to the rate of exchange based on the Czechoslovak crown. The plaintiff sought to discharge his debt by payment of a sum in leis equivalent to their value in Austro-Hungarian crowns1 according to the official rate of exchange adopted by the Roumanian State when crowns were replaced by leis in the territory acquired under the Peace Settlement, namely, 2 crowns=1 leu. The plaintiff's claim was upheld by the Courts of first and second instance. The defendant appealed.

Held: that the appeal must be upheld. The question at issue between the parties could not be resolved on the basis of the Austrian Codes invoked before the Court As there

was no national law applicable to this case and as it could not be decided on the basis of the Peace Treaty or subsequent conventions between Czechoslovakia and Roumania, the proper solution would be to adopt the principle that doubtful cases must be decided in favour of the debtor. Accordingly, the appellant was not bound to pay in Czechoslovak crowns, a foreign currency which did not exist at the time when the contract was concluded. He was entitled to discharge his debt in lei, his native currency, which not only existed at...