Facts
N. had been a member of the board of directors of O. AG, a Liechtenstein company, since 1974, which went bankrupt in 1990. Among the creditors who suffered losses were A. and associates (the plaintiffs), who had invested funds with Bank P. Ltd. in Kingstown (St. Vincent and the Grenadines). N. had timely secured his own funds with Bank P. Ltd., while the plaintiffs were no longer able to enforce their claims. The plaintiffs sued N. for attachment proceedings.
The District Court of Sargans and the Cantonal Court of St. Gallen dismissed the claim. The plaintiffs appealed to the Federal Supreme Court.
Considerations
The Federal Supreme Court decided that Liechtenstein law is applicable. The plaintiffs had argued that German law should apply, as the place of the harmful event was in Germany, where their assets were located. However, the Federal Supreme Court rejected this.
According to Art. 133 para. 2 PILA, in the absence of a choice of law and different domiciles of the tortfeasor and the injured party, the law of the place of the harmful event is decisive if the tortfeasor could have expected the occurrence of the event in that state. The Federal Supreme Court stated that the place of the…