The case *West Rand Gold Mining Company Limited v The King* [1905] 2 KB 391 is a notable English decision concerning sovereign immunity and the liability of foreign states for contractual obligations. Here’s a summary of the key points:
Background
– The West Rand Gold Mining Company (a British company) sued the British Crown (King Edward VII) to recover gold confiscated by the South African Republic (Transvaal) before the Second Boer War.
– After Britain annexed the Transvaal, the company argued that the British government, as successor to the Transvaal’s liabilities, was responsible for compensating them for the seized gold.
Key Legal Issues
1. Successor State Liability: Whether Britain, as the annexing power, inherited the contractual or delictual obligations of the former South African Republic.
2. Sovereign Immunity: Whether the British Crown could be held liable for acts of a foreign state prior to annexation.
Court’s Decision (King’s Bench Division)
– The court rejected the claim, holding:
– There was no established rule of international law requiring a successor state to assume the debts or liabilities of a predecessor state unless explicitly agreed (e.g., via treaty).
– The confiscation of gold by the South African Republic was an act of sovereign authority, not a commercial obligation enforceable against Britain post-annexation.
– Sovereign immunity principles shielded Britain
om being sued for actions taken by a foreign state before annexation.
Significance
– The case reinforced that successor states are not automatically liable for prior regimes’ obligations unless they expressly assume them.
– It clarified distinctions between public acts of state (non-justiciable) and private/commercial obligations (potentially enforceable).
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