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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. Some emigres moved to Miami, FL. Mrs. Sanchez is one of emigres, the wife of President Somoza's former Minister of Defense in Nicaragua, faced wi

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Case 1-9: De Sanchez v. Banco Central De Nicaragua

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    1. Presented by: Surat Supitchayangkool Case 1-9: De Sanchez v. Banco Central De Nicaragua

    2. Judicial Body United States, Court of Appeals, Fifth Circuit, 1985

    3. Facts In July 1979, the Somoza government in Nicaraguan fell to the revolution. Some emigres moved to Miami, FL. Mrs. 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.

    4. Facts 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). The trial court dismissed the case. In appealed court, the new issue 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).

    5. 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?

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