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CASE 1-9: DE SANCHEZ V. BANCO CENTRAL DE NICARAGUA
JUDICIAL BODY
United States, Court of Appeals, Fifth Circuit, 1985
FACTS
In July 1979, the Somoza government in Nicaraguan fell to the revolution. Then, some emigres moved to Miami, FL. However, Mrs. Josefina Navarro de Sanchez is one of emigres, the wife of President Somoza’s former Minister of Defense in Nicaragua, faced with the problem to collect a check, which issued by the Central Bank of Nicaragua. Mrs. Sanchez could not cash the check because the new government putted a stop-payment order on it. At the trial court, Mrs. Sanchez brought suit against “the Banco Central in a United States Court seeking an order to make it honor the check (which was drawn on a U.S. bank)” (August, 2004, p. 42), but the trial court dismissed. Then, Mrs. Sanchez appealed in the new issue, which was “whether an individual (Mrs. Sanchez) who is a national of a state (Nicaragua) can sue an agency of that state (the Banco Central) in another state’s courts for an alleged contractual breach” (August, 2004, p. 42).
ISSUE
Can an individual (Mrs. Sanchez) who is a national of a foreign state (Nicaragua) sue an agency of that foreign state in another state’s courts for an alleged contractual breach?
Decision
The court declined to apply international law to the appealed of Mrs. Sanchez. Then, this case dismissed.
RATIONAL
The international law concern on individuals in two ways: 1) international law ignores individuals or 2) international law treats individuals as subjects. First, in term of the traditional law of state responsibility, individuals have “no direct rights” (August, 2004, p. 41). The state of individual’s national can seek “redress on the behalf of that individual from any foreign state that cause the individual injury” (August, 2004, p. 41), which the term of liability of any foreign state calls state responsibility. However, there are some limitations, which individuals cannot pursue their own claims, or
JUDICIAL BODY
United States, Court of Appeals, Fifth Circuit, 1985
FACTS
In July 1979, the Somoza government in Nicaraguan fell to the revolution. Then, some emigres moved to Miami, FL. However, Mrs. Josefina Navarro de Sanchez is one of emigres, the wife of President Somoza’s former Minister of Defense in Nicaragua, faced with the problem to collect a check, which issued by the Central Bank of Nicaragua. Mrs. Sanchez could not cash the check because the new government putted a stop-payment order on it. At the trial court, Mrs. Sanchez brought suit against “the Banco Central in a United States Court seeking an order to make it honor the check (which was drawn on a U.S. bank)” (August, 2004, p. 42), but the trial court dismissed. Then, Mrs. Sanchez appealed in the new issue, which was “whether an individual (Mrs. Sanchez) who is a national of a state (Nicaragua) can sue an agency of that state (the Banco Central) in another state’s courts for an alleged contractual breach” (August, 2004, p. 42).
ISSUE
Can an individual (Mrs. Sanchez) who is a national of a foreign state (Nicaragua) sue an agency of that foreign state in another state’s courts for an alleged contractual breach?
Decision
The court declined to apply international law to the appealed of Mrs. Sanchez. Then, this case dismissed.
RATIONAL
The international law concern on individuals in two ways: 1) international law ignores individuals or 2) international law treats individuals as subjects. First, in term of the traditional law of state responsibility, individuals have “no direct rights” (August, 2004, p. 41). The state of individual’s national can seek “redress on the behalf of that individual from any foreign state that cause the individual injury” (August, 2004, p. 41), which the term of liability of any foreign state calls state responsibility. However, there are some limitations, which individuals cannot pursue their own claims, or