422.11 G 93/1291

The Minister in Ecuador (Bading) to the Secretary of State

No. 210

Sir: Referring to my despatch No. 208, of October 27, 1923,11 in which I stated that the Superior Court had declared itself to be without jurisdiction in the suit brought by the Government against the Guayaquil and Quito Railway Company for the recovery of 600,000 sucres, I now have the honor to transmit copy and translation of the decision in question, which is dated October 20, 1923.11 It will be seen that the Court states that this question is clearly related to the contracts of the Railway Company with the Government, and that therefore the only competent judge is the one named in those contracts, to wit, the Arbitral Court. It further states that the Legislative Decree authorizing the suit does not definitely state that it is to be brought before the Common Court, and that in any case the decision of one party to the contract would not exclude the jurisdiction of the judge designated in the contract.

The question is, however, referred to the Supreme Court for final decision, and it remains to be seen whether that Court will uphold the Superior Court or the lower Court.

I have [etc.]

G. A. Bading
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  2. Not printed.