The former majority shareholders of Industria Nacional de Clavos y Alambres de Puas, S.A. (INCA), a large Nicaraguan steel company, sought to recover from Harlow & Jones, Inc. (H & J), a U.S. steel company, the purchase price of a shipment of undelivered steel billets. Following the Sandinista revolution, the Nicaraguan Government had “intervened” in INCA and it, too, demanded the funds that H & J interpleaded into the court. The district court rejected the claim of the Sandinista Government and allocated the funds to the benefit of all parties who held shares in the company prior to the intervention. On cross-appeals by the claimants, a panel of the United States Court of Appeals for the Second Circuit (per Kaufman, J.) affirmed in part and reversed in part, and held: the act of state doctrine does not bar judicial resolution of the dispute over the funds; the actions of the Sandinista Government amounted to a taking without compensation that will not be enforced by the U.S. courts; and the district court’s allocation of pro rata shares for all of the preintervention stockholders, including minority interests, was equitable.