After occupying the Netherlands, Germany confiscated bonds of Netherlands nationals and sold them in the black market. Archimedes, an American national, purchased such bonds from a Swiss firm in violation of the Trading with the Enemy Act and executive freezing order. The bonds were placed in a blocked account in the Federal Reserve Bank. A suit by the Netherlands was removed to the New York federal district court and Archimedes was interpleaded. The Netherlands claimed title under a decree made in exile vesting protective title in the Netherlands government. While holding that the complaint stated a cause of action, the court ruled that the Netherlands decree was invalid and that Archimedes, due to willful ignorance of the facts and his violation of the freezing order, had no claim. On appeal, held, affirmed as to Archimedes on both grounds, but reversed as to the Netherlands, the decree of the government-in-exile being valid and no American claims existing. State of the Netherlands v. Federal Reserve Bank of New York, (2d Cir. 1953) 201 F. (2d) 455.
John C. Hall S.Ed.,
INTERNATIONAL LAW-POWER OF GOVERNMENT-IN-EXILE TO ENACT VALID LEGISLATION,
Mich. L. Rev.
Available at: https://repository.law.umich.edu/mlr/vol52/iss5/13