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Conflict of Laws Keyed to Hay, 16th Ed.
Banco Nacional De Cuba v. Sabbatino
Citation:
376 U.S. 398, 84 S. Ct. 923, 11 L. Ed. 2D 804 (1964)Facts
In February and July 1960, Farr, Whitlock & Co., an American commodity broker, contracted to purchase Cuban sugar from a subsidiary of Compañía Azucarera Vertientes-Camaguey de Cuba (C.A.V.), a corporation organized under Cuban law whose capital stock was owned principally by United States residents. On July 6, 1960, Congress amended the Sugar Act to permit reduction of Cuba’s sugar quota, which President Eisenhower immediately exercised. The same day, Cuba adopted Law No. 851, characterizing the quota reduction as aggression and authorizing nationalization of property of American nationals. On August 6, 1960, Cuba issued Executive Power Resolution No. 1, expropriating C.A.V.’s property. The sugar was loaded onto a ship between August 6-9, but Cuba prevented the ship from sailing until Farr, Whitlock entered into new contracts with a Cuban government instrumentality. After the ship sailed, the Cuban bank sought payment in New York, but Farr, Whitlock refused and instead paid C.A.V.’s receiver, leading to this lawsuit.
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