Summary
In 1977, Hungary and Czechoslovakia agreed to build a dam, but Hungary withdrew in 1989, citing environmental concerns. Hungary officially terminated the treaty in 1992, accusing Czechoslovakia of breaching it by causing environmental damage. The Court of Justice ruled against Hungary's claim of impossibility and found Czechoslovakia (Slovakia) guilty of breaching the treaty, requiring them to negotiate and compensate Hungary for damages. This case highlights the legal complexities surrounding international environmental agreements and the implications of state responsibilities in such situations.
Construction of Dam in 1977
Hungary and Czechoslovakia signed a treaty to construct a dam in 1977, but Hungary abandoned the project in 1989 while Czechoslovakia continued.
Termination of Treaty in 1992
Hungary notified Czechoslovakia of terminating the treaty in 1992, leading to environmental harm from a bypass canal five months later.
Material Breach Claim
Hungary claimed that Czechoslovakia's actions constituted a material breach of the treaty, resulting in serious environmental harm and making the treaty impossible to perform.
Defense and State Responsibility
Hungary invoked the defense to abandon construction work, citing state responsibility and changed circumstances since the collapse of communism and economic benefits linked to the project.
Court of Justice Decision
The Court of Justice held that impossibility is not a valid ground for failure to carry out construction as Hungary failed to prove its decision was due to danger to the environment.
Negotiation and Damages
Czechoslovakia was found in material breach, and Slovakia was required to negotiate in good faith and pay Hungary for damages resulting from the project.
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