So far, we have been considering the law of England and the Commonwealth. In this chapter, we turn to the United States. In the beginning, US courts adopted the same approach as English courts.

Original approach

1. United States (New York)

2. Republic of Iraq v. First National City Bank

3. US Court of Appeals for the Second Circuit

4. 353 F 2d 47 (1965)

Background

In 1968, a revolution took place in Iraq, which resulted in the abolition of the monarchy and the establishment of a republic. The United States recognized the new regime. The erstwhile king, Faisal II, was killed in the course of the revolution. Subsequently, the new government adopted legislation (Ordinance No. 23) confiscating all the property of his dynasty. The late king had had a deposit account in New York with a New York trust company, Irving Trust; he had also owned shares in a Canadian investment trust which were in a custody account with Irving Trust. The question before the court was whether the confiscation would be recognized with regard to these items of property. The district court held that it would not. The Republic of Iraq appealed.