The act of a sovereign state within its own boundaries becomes a rule of decision for the courts of another country.
A dispute arose over the ownership of lead bullion seized by Mexican Constitutionalist forces and sold for war supplies. The plaintiff, an American citizen, claimed ownership of the bullion prior to its seizure. The court considered whether a United States district court had jurisdiction to adjudicate the validity of the title acquired through the seizure by the Carranza forces. Because the United States government recognized the Carranza government as the de jure government of Mexico, the court held that the seizure was an act of a legitimate sovereign. The court applied the act of state doctrine, determining that the seizure and sale by the foreign sovereign became a rule of decision for United States courts.
At page 310 Determining jurisdiction under act of state doctrine14 citing cases“the act within its own boundaries of one sovereign state ... becomes ... a rule of decision for the courts of this country.”
- Eurus Energy Holdings Corp. v. Kingdom of Spain, No. 2025-1842 (D.D.C. Sept. 24, 2026).published(Such action when shown to have been taken, becomes, as we have said, a rule of decision for the courts of this country.)
- Lessors of Abchakan Vill. v. Def., 137 F.4th 1301 (Fed. Cir. 2025).publishedKirkpatrick & Co. v. Env’t Tectonics Corp., Int’l, 493 U.S. 400, 405 (1990) (quoting Ricaud v. Am. Metal Co., 246 U.S. 304, 310 (1918)) (internal citation omitted).
- Jgc Holdings Corp. v. Kingdom of Spain, No. 2023-2701 (D.D.C. Sept. 26, 2024).publishedMetal Co., 246 U.S. 304, 310 (1918)).
- Emden v. The Museum of Fine Arts, Houston, No. 4:21-cv-03348 (S.D. Tex. May 2, 2022). Metal Co., 246 U.S. 304, 310 (1918)).
- United States v. Trabelsi, No. 2006-0089, 2020 WL 1236652 (D.D.C. Mar. 13, 2020).publishedThat argument fails because (1) it is far from clear that the Council of State’s decision, which simply refers to the remaining twenty-four overt acts a “among . . . those for which the extradition is granted,” Dkt. 367-21 at 26-27, can ca…
- Mountain Crest SRL, LLC v. Anheuser-Busch InBev SA/NV, 937 F.3d 1067 (7th Cir. 2019).published Leather Co., 246 U.S. 297 , 303-04 (1918) (declining to examine property seizures because doing so would determine that the seizure within Mexico and by Mexico was legally ineffective); Ricaud v. Am. Metal Co., 246 U.S. 304, 310 (1918) (sa…
- Barry M. Smith & Rochelle Smith v. Comm'r, 151 T.C. No. 5 (Tax Ct. 2018).(asset freeze orders)
- Marei Von Saher v. Norton Simon Museum of Art, No. 16-56308 (9th Cir. July 30, 2018).publishedMetal Co., 246 U.S. 304, 310 (1918)).
- Repub. of Ecuador v. Dassum, 255 So. 3d 390 (Fla. 3d DCA 2017).publishedMetal Co., 246 U.S. 304, 310 (1918)); see also Banco 9 Sections 95.11(3)(f) and (p), states: Actions other than for recovery of real property shall be commenced as follows: . . . (3) Within four years.— (f) An action founded on a statutory…
- Marei Von Saher v. Norton Simon Museum of Art At, 754 F.3d 712 (9th Cir. 2014).published Metal Co., 246 U.S. 304, 310 (1918).
Show 2 more citing cases
- Prov Govt Marinduque v. Placer Dome, Inc., No. 07-16306 (9th Cir. Sept. 29, 2009).publishedKirkpatrick recognized that “the jurispru- dential foundation for the act of state doctrine has undergone some evolu- MARINDUQUE v. PLACER DOME, INC. 14027 doctrine requires that the “official act of a foreign sovereign performed within it…
- W. S. Kirkpatrick & Co. v. Env't Tectonics Corp., Int'l, 493 U.S. 400 (1990).published“a rule of decision for the courts of this country”
At page 309 Courts accepting foreign government acts as rule4 citing cases“on the validity of the acts of another done within its own territory.”
- Emden v. Museum of Fine Arts, 103 F.4th 308 (5th Cir. 2024).published Kirkpatrick & Co. v. Envt’l Tectonics Corp., Int’l, 493 U.S. 400, 405 (1990); Banco Nacional de Cuba v. Sabbatino, 376 U.S. 398, 401 (1964), superseded in part by 22 U.S.C. § 2370 (e)(2); Ricaud v. Am. Metal Co., 246 U.S. 304, 309 (1918);…
- Fed. Treasury Enter. Sojuzplodoimport v. Spirits Int'l B.V., No. 1:14-cv-00712 (S.D.N.Y. July 29, 2020).Museum of Art, 702 F.3d 140, 145-46 (2d Cir. 2012) (citation omitted) (quoting Banco Nacional de Cuba v. Sabbatino, 376 U.S. 398, 428 (1964)). “[T]he details of such action or the merit of the result cannot be questioned but must be accept…
- Asociacian De Reclamantes v. United Mexican States, 561 F. Supp. 1190 (D.D.C. 1983).publishedRicaud v. American Metal Co., 246 U.S. 304, 309 [ 38 S.Ct. 312, 313 , 62 L.Ed. 733 (1920) ] ... (1918).
- Stephen v. Zivnostenska Banka, 15 A.D.2d 111 (N.Y. App. Div. 1st Dep't 1961).published
At page 306 Collector of Customs at El Paso, Texas. An injunction was granted restraining the Collector until further order from delivering the bullion to either of the…2 citing cases
- Rodolfo Enrique Jimenez v. Luisa Palacios, No. 2019-0490-KSJM (Del. Ch. Aug. 12, 2019).publishedMetal Co., 246 U.S. 304, 306 (1918); Underhill, 168 U.S. at 252 ; Banco Nacional de Cuba v. First Nat’l City Bank of New York, 431 F.2d 394, 399 (2d Cir. 1970), vacated sub nom.
- Rodolfo Enrique Jimenez v. Luisa Palacios, No. 2019-0490-KSJM (Del. Ch. Aug. 2, 2019).publishedMetal Co., 246 U.S. 304, 306 (1918); Underhill, 168 U.S. at 252 ; Banco Nacional de Cuba v. First Nat’l City Bank of New York, 431 F.2d 394, 399 (2d Cir. 1970), vacated sub nom.
At page 308 from .General Carranza, claiming to be the Provisional President of the Republic of Mexico, had the District Court of the Western District of Texas, into which…2 citing cases
- United States v. Belmont, 301 U.S. 324 (1937).published To permit the validity of the acts of one sovereign State to be reexamined and perhaps condemned by the courts of another would very certainly `imperil the amicable relations between governments and vex the peace of nations.'" Ricaud v. Am…
- Bethlehem Steel Corp. v. Bd. of Commissioners, 276 Cal. App. 2d 221 (Cal. Ct. App. 1969).published (United States v. Pink, supra, 315 U. S. 203, 229-230 [ 8 L.Ed. 796 , 817-818].) To permit state legislation to concurrently operate in this sphere would very certainly “imperil the amicable relations between governments and vex the peace…
62 L. Ed. at 736 cited at this page1 citing case
- Linder v. Calero Portocarrero, 747 F. Supp. 1452 (S.D. Fla. 1990).publishedIn Kirkpatrick Co. v. Environmental Tectonics Co., - U.S. -, 110 S.Ct. 701, 704 , 107 L.Ed.2d 816 (1990), the Court wrote that ”[i]n every case in which we have held the act of state doctrine applicable, the relief sought or the defense in…
At page 304 Mr. Justice Clarke delivered the opinion of the court. In.this suit in equity, commenced in the United States District Court for the Western District of Texas,…1 citing case
- Bertram Zweibon v. John N. Mitchell, Individually & as Attorney Gen. of the United States of Am., 516 F.2d 594 (D.C. Cir. 1975).published To permit the validity of the acts of one sovereign State to be reexamined and perhaps condemned by the courts of another would certainly ‘imperil the amicable relations between governments and vex the peace of nations.’ * * * The remedy o…
Other citing cases
- Sarei v. Rio Tinto PLC., 221 F. Supp. 2d 1116 (C.D. Cal. 2002).published
- Norsul Oil & Min. Co., Ltd. v. Texaco, Inc., 703 F. Supp. 1520 (S.D. Fla. 1988).published
- Repub. of the Philippines v. Marcos, 806 F.2d 344 (2d Cir. 1986).published
- Repub. of Philippines v. Marcos, 806 F.2d 344 (2d Cir. 1986).published
- Occidental Of Umm Al Qaywayn, Inc. v. A Certain Cargo Of Petroleum Laden Aboard The Tanker Dauntless Colocotronis, 577 F.2d 1196 (5th Cir. 1978).published
- Loftin & Woodard, Inc. v. United States, 577 F.2d 1206 (5th Cir. 1978).published
- Roe v. Unocal Corp., 70 F. Supp. 2d 1073 (C.D. Cal. 1999).published
- Cathelina Antolok v. United States, 873 F.2d 369 (D.C. Cir. 1989).published
- William F. Callejo, Individually & as Tr., & Adelfa B. Callejo, as Tr. v. Bancomer, S.A., 764 F.2d 1101 (5th Cir. 1985).published
- Odum v. State, 651 P.2d 703 (Okla. Crim. App. 1982).published
v.
American Metal Company, Limited
delivered the opinion of the court.
In.this suit in equity, commenced in the United States District Court for the Western District of Texas, the plain-tiffin that court claims to be the owner of and entitled to a large consignment of lead bullion held in bond by the[*306] Collector of Customs at El Paso, Texas. An injunction was granted restraining the Collector until further order from delivering the bullion to either of the other defendants.
Barlow, one of the defendants in the District Court, claims to be the owner of the property by purchase from the defendant Ricaud, who it is claimed purchased it from General Pereyra, who in the year 1913 was the commander of a brigade of the Constitutionalist Army of Mexico of which Venustiano Carranza was then First Chief. '
It is not seriously disputed that General Pereyra, in. his capacity as a commanding officer, in September, 1.913, demanded this bullion from the Penóles Mining Company, a Mexican corporation doing business at Bermejillo, Mexico; that when it was delivered to him he gave a receipt which contains a promise to pay for it “on the triumph of the revolution or the establishment of a legal government”; that Pereyra sold the bullion to defendant Ricaud, who sold it to the defendant Barlow; that the proceeds of the sale were devoted to the purchase of arms, ammunition, food and clothing for Pereyra’s troops, and that Pereyra in the transaction represented and acted for the Government of General Carranza, which has since been recognized by the United States Government as the de jure Government of Mexico.
The plaintiff, appellee here, claims to have purchased the bullion from the Penóles Mining Company in June, 1913.
The District Court rendered a decree in favor of the .plaintiff from which defendants appealed to the Circuit Court of Appeals' for the Fifth Circuit, and that court certifies three questions as to which it desires the instruction of this court.
The sufficiency of the certificate of the Circuit Court' of Appeals is challenged at the threshold.
[*307] There is no denying that there is much of merit in the objection to the form of this certificate, including the form of the questions, for the reason that the certificate, instead of containing a “proper statement of the facts on which the questipns and propositions of law arise,” as is required by Rule 37 of this court, contains a statement of what is “alleged and denied” by the parties plaintiff and defendant in their pleadings, with the 'additional statement that there was evidence “tending to establish the facts as claimed by each party,” but without any finding whatever as. to what the evidence showed the facts to be, and the first question, on which the other two depend, is in terms based entirely on an “assumed” statement of facts.
If this certificate had not been supplemented by the recognition by the United States Government of the Government of Carranza, first as the de facto, and later as the de jure Government of Mexico, of which facts, this court will take judicial notice, (Jones v. United States, 137 U. S. 202; Underhill v. Hernandez, 168 U. S. 250) it would be our duty to declare the certificate insufficient and to return it to the Circuit Court of Appeals without answering the questions. Cincinnati, Hamilton & Dayton R. R. Co. v. McKeen, 149 U. S. 259; Graver v. Faurot, 162 U. S. 435; Cross v. Evans, 167 U. S. 60; Stratton’s Independence v. Howbert, 231 U. S. 399, 422.
But this recognition of the government under which General Pereyra was acting, as the legitimate Government of Mexico, makes the answers to the questions so certain and its effect upon the case is so clear, that, for the purpose of making an end of the litigation, we will proceed to answer the questions.
The first question is:
“I. Assuming that the bullion in suit was seized, condemned, and sold for war supplies by the Constitutionalist forces in revolution in Mexico, acting under authority[*308] from .General Carranza, claiming to be the Provisional President of the Republic of Mexico, had the District Court of the Western District of Texas, into which the said bullion had been imported from Mexico, jurisdiction to try and adjudge as to the validity of the title acquired by and through the said seizure, appropriation, and sale ■ by the Carranza forces as against an American citizen claiming ownership . of the said bullion prior to its • seizure?”
' There can be no doubt that the required diversity of .citizenship to give the District Court jurisdiction.of the case was stated in the petition for injunction. The certificate- shows that it was alleged in the petition that the bullion was the property- of the plaintiff and that it had been forcibly taken from its possession in Mexico by unknown persons .but without any reference being made to a state of war prevailing therein at the time; that it was consigned to defendant Barlow at El Paso, Texas, and was in a bonded warehouse in the possession of the defendant'Cobb, a¡s Collector of Customs, who,'unless restrained by the court, would deliver it to the other defendants. ■
This form of petition brought the case within the jurisdiction of the District Court (United States v. Arredondo, 6 Pet. 691, 709; Grignon’s Lessee v. Astor, 2 How. 319; Minnesota Co. v. St. Paul Co., 2 Wall. 609, 632), and the question is, whether the circumstance that the bullion was seized, condemned and sold under the conditions stated in,the question deprived thé court of jurisdiction to go forward and .adjudge as to the validity of the title acquired by the seizure and sale by the Carranza forces.
The answer which should be given to this question has been rendered not doubtful by the fact that, as we have said, the revolution inaugurated by General. Carranza •against General Huerta proved successful and the government established by him has been recognized by the[*309] political department of our Government as the de facto and later as the de jure Government of Mexico, which decision binds the judges as well as all other officers and citizens of the Government. United States v. Palmer, 3 Wheat. 610; In re Cooper, 143 U. S. 472; Jones v. United States, 137 U. S. 202. This recognition is retroactive in effect and validates all the actions of the Carranza Government from the commencement of its existence (Williams v. Bruffy, 96 U. S. 176, 186; Underhill v. Hernandez, 168 U. S. 250, 253), and the action of General Pereyra complained of must therefore be regarded as the action, in time of civil war, of á duly commissioned general of the. legitimate Government of Mexico.
It is settled that the courts will take judicial notice of such recognition, as we have here; of the Carranza Government, by the political department of our Government (Jones v. United States, 137 U. S. 202), and that the courts of one independent government will not sit in judgment on the validity of the acts of another done within its own territory (Underhill v. Hernandez, 168 U. S. 250, 253; American Banana Co. v. United Fruit Co., 213 U. S. 347; Oetjen v. Central Leather Co., ante, 297). This last rule, however, does hot deprive the courts of jurisdiction once acquired over a case.. It requires only that, when it is made .to appear that the foreign government has acted in a given way on the subject-matter of the litigation, the details of such action or the merit of the'result cannot be questioned but must be accepted by our courts as a rule for their decision. . To accept a ruling.authority and to. decide accordingly is not a surrender or abandonment of jurisdiction but is an exercise of it; It results that the title to the property in this case must be determined by the result, of the action taken by the military authorities of Mexico and that- giving effect to this rule is an exercise of jurisdiction which requires that the first question be answered in the affirmative. j
[*310] The second question reads:
“II. If [the first question is answered in the affirmative,] does the subsequent recognition by the .United States Government of Carranza as the legitimate President of the Republic of Mexico and his government as the only legitimate government of. the Republic of Mexico deprive this court of jurisdiction on. this appeal to decide and adjudge the case on its merits?” ' .
Our answer to the first requires a negative answer to this second question.
The third question reads:
“III. If question two is answered in the negative, did the seizure, condemnation, and sale of the bullion in the manner and for the purposes stated to be assumed in question one have the effect of divesting the title to or ownership of it of a certain citizen of the United States of America not in or a resident of Mexico when such seizure and condemnation occurred? ” ■
• The answer to this question must be in tne affirmative for the reasons' given and upon the authorities cited in the opinion recently announced incases Nos. 268 and 269, Oetjen v. Central Leather Co. The fact that the title to the property in controversy may have been in an American citizen, who was not in or a resident of Mexico at the tune it wa¡s seized for military purposes by the legitimate Government of Mexico, does not affect the rule of law that the act within its own boundaries of one sovereign State cannot become the subject of reexamination and modification in the courts of another. Such action, when shown to have been taken, becomes, as we have said, a rule of decision for the courts of this country. Whatever rights such an American citizen may have can be asserted only through the courts of Mexico or through the political departments of our Government. The first and third questions will be answered in the affirmative and the second in the negative.
And it is so ordered.