Tuesday, April 24, 2012

United States v. Belmont case brief

United States v. Belmont


Procedural History:
Appeal from denial of claim for payment of money deposited by Russian corporation.  The United States (P) claimed that it was due funds deposited in  a U.S. bank by a Russian corporation that had been nationalized by the Soviet government.

Overview:

A Russian corporation had deposited money in Belmont (D), a private bank in New York City, prior to the 1918 nationalization and liquidation by the Soviet government of the corporation. In 1933, the Soviet Union and the United States (P) agreed to a final settlement of claims and counterclaims. The Soviet Union agreed to take no steps to enforce claims against American nationals and assigned and released all such claims to the United States (P). When the U.S. (P) sought to recover the money, the court held that the situs  of the bank deposit was within the state of New York and was not an intangible property right within Soviet territory and that it would be contrary to the public policy of the State of New York to recognize or enforce the nationalization decree. The United States (P) appealed and the U.S. Supreme Court granted certiorari.

Issue:

Does the national government have complete power in the conduct of international affairs?

Rule:

the national govt has complete power in the conduct of intl. affairs and states cannot curtail or interfere in that power

Analysis:

The Court noted that recognition of the Soviet Union and the release of all claims were interdependent Thus it was purely in the realm of foreign policy to make this agreement States cannot interfere in the conduct of foreign relations.

Outcome:

(Sutherland, J.) Yes. The national government has complete power in the conduct of international affairs and states cannot curtail or interfere in that power. The United States (P) recognized the Soviet government coincidentally with the assignment of all claims. The President has the power to conduct foreign relations, without the consent of the Senate. In respect of foreign relations generally, state lines disappear. Reversed and remanded.

No comments:

Post a Comment

The Ins and Outs of Class Action Lawsuits: A Comprehensive Guide

Sometimes, you may buy a product only to find it defective. To make it worse, your search for the product reveals mass complaints. You can ...