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Island of Palmas Case

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Island of Palmas Case (United States v.

The Netherlands)
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Citation. Perm. Ct. of Arbitration, 2 U.N. Rep. Int’l Arb. Awards 829 (1928).

Brief Fact Summary. Both the United States (P) laid claim to the ownership of the
Island of Palmas. While the U.S. (P) maintained that it was part of the Philippines, the
Netherlands (D) claimed it as their own.

Synopsis of Rule of Law. A title that is inchoate cannot prevail over a definite title
found on the continuous and peaceful display of sovereignty.

Facts. Both the United States (P) laid claim to the ownership of the Island of Palmas.
While the U.S. (P) maintained that it was part of the Philippines, the Netherlands (D)
claimed it as their own. The claim of the U.S. (P) was back up with the fact that the
islands had been ceded by Spain by the Treaty of Paris in 1898, and as successor to
the rights of Spain over the Philippines, it based its claim of title in the first place on
discovery. On the part of the Netherlands (D), they claimed to have possessed and
exercised rights of sovereignty over the island from 1677 or earlier to the present.

Issue. Can a title which is inchoate prevail over a definite title found on the
continuous and peaceful display of sovereignty?

Held. (Huber, Arb.). No. A title that is inchoate cannot prevail over a definite title
found on the continuous and peaceful display of sovereignty. The peaceful and
continuous display of territorial sovereignty is as good as title. However, discovery
alone without subsequent act cannot suffice to prove sovereignty over the island. The
territorial sovereignty of the Netherlands (D) was not contested by anyone from 1700
to 1906. The title of discovery at best an inchoate title does not therefore prevail over
the Netherlands (D) claims of sovereignty.

Discussion. Evidence of contracts made by the East India Company and the


Netherlands (D) was examined by the arbitrator. The claims made by the Netherlands
(D) were also based on the premise of the convention it had with the princes and
native chieftains of the islands. Hence, at the time of the Treaty of Paris in 1898, Spain
was found not to have dominion over the island.
y 4,700 private U.S. claims, ordered payment by Iran (D) to U.S. nationals amounting
to over $2.5 billion.

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