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University of Michigan Law School

Michigan Law Review

1965

Banco Nacional de Cuba v. Sabbatino

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Full-Text Articles in Law

Sabbatino Doctrine Modified In Foreign Assistance Act Of 1964, Michigan Law Review May 1965

Sabbatino Doctrine Modified In Foreign Assistance Act Of 1964, Michigan Law Review

Michigan Law Review

Prior to Banco Nacional de Cuba v. Sabbatino, one of the United States Supreme Court's most controversial recent decisions touching on matters of international law, it had been held that American courts could not question titles to property acquired by virtue of a public taking decreed by a recognized foreign government and carried out within its territory. This concept of judicial abstention, embodied in the "act of state doctrine," was held applicable in Sabbatino even though it was alleged that the asserted claim to the property stemmed from a confiscation that violated customary international law. This decision led Congress …


The Act Of State Doctrine After Sabbatino, William J. Bogaard Jan 1965

The Act Of State Doctrine After Sabbatino, William J. Bogaard

Michigan Law Review

The United States Supreme Court recently decided, in Banco Nacional de Cuba v. Sabbatino, that American courts must enforce a recognized foreign government's expropriation decree even though the decree violates international law. The Court, contrary to the views of respected international lawyers, found this result dictated by the "act of state doctrine," which bars American courts from reviewing the validity of another nation's official acts. The decision, amid frequent revolutionary confiscations and national programs of expropriation, seriously draws into question the wisdom of further investments in developing countries. This is unfortunate because American foreign investments benefit the receiving country …