Facts
The Discount Bank Overseas Limited was ordered by the Federal Tribunal on May 15, 1979 to pay Dr. Mahmoud Mowlazadeh various sums in Swiss francs, US dollars, and German marks, with the respective interest. The Bank made the payments on June 6, 1979, but due to the depreciation of the dollar and the mark against the Swiss franc, the total amount decreased from CHF 575,500.51 to CHF 395,848.24. On July 16, 1980, Dr. Mowlazadeh sued the Bank before the Cantonal Court of Appeal of Ticino, requesting compensation for the difference of CHF 179,852.27 with interest. The cantonal court granted the request.Considerations
1. The Federal Tribunal rejected the Bank's plea of res judicata, considering that the claim for compensation for damages exceeding the default interest had not been the subject of the previous judgment. According to federal law, a judgment precludes the introduction of a subsequent civil lawsuit only if the latter concerns the same subject matter and is based on the same set of facts. 2. Regarding the damage, the Federal Tribunal specified that, under Article 106 of the Code of Obligations, a debtor in default is liable for the loss resulting from the depreciation of the currency between the date of default and the date of payment, provided that the damage exceeds the amount of default interest. However, the mere theoretical possibility for the creditor to convert his claim into a non-devalued currency is not enough to charge the debtor with any loss resulting from the exchange rate variation. The creditor must prove that, if the performance in foreign currency had been timely, he would have actually converted the proceeds into a non-depreciated currency. In the…