Riggs National Corporation & Subsidiaries (f.k.a. Riggs National Bank and Subsidiaries) - Page 88

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               In the principal contemporary formulation of the act of state          
          doctrine, the U.S. Supreme Court in Banco Nacional de Cuba v.               
          Sabbatino, 376 U.S. 398, 428 (1964), stated:                                
               rather than laying down or reaffirming an inflexible and               
               all-encompassing rule in this case, we decide only that                
               the Judicial Branch will not examine the validity of a                 
               taking of property within its own territory by a foreign               
               sovereign government, extant and recognized by this                    
               country at the time of suit, in the absence of a treaty                
               or other unambiguous agreement regarding controlling                   
               legal principles, even if the complaint alleges that the               
               taking violates customary international law.                           
          The act of state doctrine thus generally precludes judicial                 
          examination of the lawfulness of a taking by a foreign sovereign of         
          property located in its territory, whether under the law of that            
          foreign country, under international law, or under the law or               
          policy of the forum.  1 Restatement, Foreign Relations Law 3d, sec.         
          443, cmt. d (1986).42                                                       
               Although the act of state doctrine has predominantly been              
          applied in cases involving a foreign sovereign's expropriation of           
          private property, the doctrine has also been applied to other types         
          of acts by foreign sovereigns.  Id. cmt. c & reporter's note 7.             
               The burden of establishing the act and its character as an act         
          of state is on the party invoking the doctrine.  Republic of the            
          Philippines v. Marcos, 806 F.2d 344, 356-357, 359-360 (2d Cir.              
          1986); 1 Restatement, supra sec. 443, cmt. i & reporter's note 3.           

          42        The act of state doctrine is to be contrasted with the            
          U.S. courts' well-established refusal to enforce a foreign                  
          country's penal or revenue laws.  Banco Nacional de Cuba v.                 
          Sabbatino, 376 U.S. 398, 413-415 (1964); 1 Restatement, Foreign             
          Relations Law 3d, sec. 443, cmt. i & reporter's note 10 (1986).             



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