INTERNATIONAL LAW - EFFECT OF RECOGNITION - STATUTE OF LIMITATIONS

Authors

John N. Seaman, University of Michigan Law SchoolFollow

Abstract

In 1917, the Provisional Government of Russia, which was recognized by the United States, had on deposit with defendant bank a large sum of money. During that year the Provisional Government was overthrown by the Soviet Government, and the bank decided to repudiate the debt, because deposits which the bank held in Russia had been confiscated to an amount exceeding that of the debt. The United States continued to recognize the Provisional Government as the de jure government of Russia until 1933. Before 1922, the bank communicated notice of the repudiation several times to Ambassador Bakhmeteff, representing the Provisional Government, and to Serge Ughet, the financial attache. Upon recognition of the Soviet Government in 1933, the United States took an assignment of claims which might be found owing to that government, and sued the bank on this debt. In Guaranty Trust Company v. United States, the Supreme Court held that the notice to the representatives of the Provisional Government was an effective repudiation to the state of Russia, which was not invalidated by the subsequent recognition of another government as the ruler of that state; that the statute of limitations of New York runs against a foreign sovereign, and had run in this case at the time of the assignments to the United States; and that the United States as assignee was barred from asserting the claim.

Recommended Citation

John N. Seaman, INTERNATIONAL LAW - EFFECT OF RECOGNITION - STATUTE OF LIMITATIONS, 37 Mich. L. Rev. 931 (1939).
Available at: https://repository.law.umich.edu/mlr/vol37/iss6/8