Adi_Hadzic_Problem_Solution_1_Chapter47.doc

Adi_Hadzic_Problem_Solution_1_Chapter47.doc - Problem...

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Problem Solution 1, Chapter 47, page 1028 Facts: Three banks that are wholly owned by the Republic of Costa Rica had issued promissory notes, payable in U.S. dollars in New York City. The notes are now in default due solely to actions of the Costa Rican government, which had suspended all payments of external debt because of escalating economic problems. Efforts by Costa Rica to curb foreign debt payment difficulties conflicted with U.S. policy for debt resolution procedure as conducted under the auspices of the International Monetary Fund. A syndicate of U.S. banks brought suit to recover on the promissory notes. The three Costa Rican banks assert the act of state doctrine as a defense. Issue : The issue in this is problem is should the act of state doctrine be applied? In 1987, the U.S. Supreme court described the act of state doctrine in terms that remain valid today:” Every Sovereign State is bound to respect the independence of every other sovereign State, and the courts of one country will not sit in judgment on the acts of the government of
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This note was uploaded on 05/18/2010 for the course INTERNATIO 123345566 taught by Professor Jondelong during the Spring '10 term at SUNY Canton.

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Adi_Hadzic_Problem_Solution_1_Chapter47.doc - Problem...

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