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act of state doctrine

Soon after Fidel Castro came to power, Cuba nationalized a Cuban sugar company that had been owned primarily by U. S. citizens. Previously the company had a contract to deliver US$ 175 million of sugar to Morocco. To get permission to ship this sugar from Cuba, the broker who had arranged this sale agreed to pay the Banco Nacional de Cuba (BNC), an agency of the Cuban government, the $175 million. The companyĆ¢??s former owners (plaintiffs) then brought suit in the U. S. to compel the broker to pay them the $175 million rather than BNC. BNC intervened and asked that the suit be dismissed in accordance with the act of state doctrine. The plaintiffs asked the U. S. Attorney General (AG) for an opinion as to whether the act of state doctrine applied, but the AG declined to give an opinion. The plaintiffs then asked the court not to dismiss the case, arguing that the act of state doctrine must not apply because Cuba violated international law in expropriating their property and not paying them adequate compensation for it. Should this case be dismissed? Explain

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Not really sure how to answer this because it is not really clear who is responsible, I do think that possibly US is responsible to pay $175 million
Soon after Fidel Castro came to power, Cuba nationalized a Cuban sugar company that had been owned primarily by U. S. citizens. Previously the company had a contract to deliver US$ 175 million of sugar to Morocco. To get permission to ship this sugar from Cuba, the broker who had arranged this sale agreed to pay the Banco Nacional de Cuba (BNC), an agency of the Cuban government, the $175 million. The companyĆ¢??s former owners (plaintiffs) then brought suit in the U. S. to compel the broker to pay them the $175 million rather than BNC. BNC intervened and asked that the suit be dismissed in accordance with the act of state ...

Solution Summary

act of state doctrine is discussed in great detail in this solution.

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