A national of State A has his factory in State B seized without compensation. He loses in B's trial court. An appeal to B's independent supreme court is open and effective, but he does not use it. State A at once brings an international claim. Is it admissible?
- A may exercise diplomatic protection because the injured person is its national.
- The rule of exhaustion of local remedies requires the individual first to use all effective remedies in the host state.
- An effective appeal is still available, so no exception (ineffective or futile remedies) applies.
Answer: No. The claim is inadmissible until the local remedies in State B have been exhausted.