Professor Kegel comments on arecent decision of the German Supreme Court ("Bundesgerichtshof" which is the court of last resort in Western Ger many for civil and criminal actions). The court's decision dealt with an action brought by a Chicago (Illinois) manufacturer for the price of choco late sold and delivered to the defendant in early 1954, the defendant then doing business in New Orleans (Louisiana). The greater portion of the price of $ 5. 000 had not been paid by the defendant. The action had been brought before a German court because the defendant had assets in Germany. The issue of the case was whether or not the statute of limitations had run. The German Supreme Court in its decision restated the rule of German conflicts law that the law governing the limitation of an action is the law which governs the obligation. The Court held that, as an action for price is governed by the lex loci solutionis, the law of Louisiana had to be applied in the case before the court. The Court, however, pointed out that should the law of Louisiana subject the duties of the buyer to another law - in the case at bar to the law of Illinois - this reference of Louisiana law to Illinois law would be binding on German courts.
