Facts
The city of Salzburg issued a bond loan of 15 million Swiss francs in 1925, repayable no later than September 30, 1955. In 1944, it proposed to the bondholders either to reduce the interest rate to 4% or to be reimbursed in reichsmarks on a blocked account. As the holders did not accept this offer within the time limit, the city terminated the loan on September 30, 1944. Dr. Helmuth Legerlotz, a German national, owned 13 bonds of this loan. After recovering his securities in 1958, he claimed payment of the remaining capital and unpaid interest since 1939 from the city of Salzburg. The courts rejected his claim, considering that his claims were time-barred.Considerations
According to Swiss private international law, the loan contract is subject to the law of the place of issue, i.e. Swiss law in this case. The termination of the loan by the city of Salzburg in 1944 did not constitute an abuse of rights, as it was entitled to do so and was not required to take into account the difficulties related to the war that some creditors might have encountered in accepting its proposals within the prescribed time limits.
The limitation of the claimant's claims was not suspended, as he was unable to…