Societ Anonima Principe di Patern Moncada v INPS
|18 Giugno 1966
|Court of Appeal of Palermo (Italy)
Jurisdiction In general Territorial Territorial limits of jurisdiction Extraterritorial jurisdiction Over foreign private company operating abroad Collection of social security contributions by national public corporation from foreign company in respect of nationals employed by company Whether permissible derogation from rule of international law prohibiting exercise of extraterritorial jurisdiction Accession of former colony to independence Interim period before transfer of social security functions to new State Italy-Libya Treaty on Economic Cooperation, 1956 The law of Italy
States as international persons State succession Pensions Accession of Libya to independence Collection of social security contributions from foreign company established in Libya during interim period before transfer of social security functions to new State Whether permissible derogation from rule of international law prohibiting exercise of extraterritorial jurisdiction Italy-Libya Treaty on Economic Co-operation, 1956 The law of Italy
Summary: The facts:At the request of the Italian National Institute for Social Security (INPS), an Italian court ordered a private company, Societ Anonima Principe di Patern Moncada, to pay to the Institute social security contributions in respect of the employment in Libya of Italian nationals between 1953 and 1958. The company appealed, arguing that, since it was a foreign company and its main activity was carried out abroad, it was not obliged to pay social security contributions to the Institute.
Held:The appeal was dismissed.
(1) It was a fundamental principle of international law that a State could not extend its jurisdiction to the territory of another State, either directly through its own organs or indirectly through its public corporations, in order to collect social security contributions from foreign companies employing its nationals.
(2) Nevertheless this principle could be derogated from by international treaty and was indeed normally derogated from where a former colony became an independent sovereign State, during the interim period before it succeeded to the powers and property of the colony. Such a derogation had been applied by the Treaty of Economic Co-operation between Italy and Libya of 2 October 1956.
The following is the text of the relevant part of the judgment of the Court:
As the first ground for its appeal the appellant...
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