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Luther Vs Sagor

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 Name of Judgment Luther vs.

Sagor
 Popularly Name for
 Bench and Name Bankers, Warrington L.J.
 Succeeded from (if any) The Arantzanu Case(1939)
 Overruled by (If any)
 Parties Appearing in the case Luther and Sagor
 Summary De-facto recognition can be the ground valid regognition if granted by others
 Ratio The de-facto govt acquires the sovereign immunity from being sued in the courts of a
recognising state.
 Principle (if any)
 Related developments:

Citations: (1921) 3 KB 532.


Case name: Party 1 Luther
Party 2 Sagor
Party 3
Party 3 role:
Additional case Name type: The Arantzanu Mendi
name:

Party 1
Party 2
Party 3
Party 3 role:
Other case Name Bank of Ethiopia vs. National Bank of Egypt & Ligouri(1937)3 All ER 8
name:
Name type
Date:
Jurisdiction/Court/Chamber: English Court
Judge(s): Name Role Opinion
Bankers, L.J. Major Assenting
Warrington, L.J. Assenting

Procedural stage:
Previous stages:
Subsequent stages:
Related developments:
Key subject: De-facto recognition
Keywords: Recognition, De-facto, de-jure
Core issues: Recognition de-facto govt.
Facts: In 1918, Russia passed a decree for nationalising mechanical sawmills and wood
working establishments belonging to private or limited companies, and took over the
plaintiff’s mill.
Representatives of Russia govt entered into contract with the defendant to sell some
timber, etc.
The plaintiff requested the court to declare that all goods purchased were his property
and contended the Soviet Govt. was not recognised in UK.
Held: In favour of defendant, held that the Govt of the Britain having recognised the Soviet
Govt. really in possession of powers of sovereignty in Russia, the acts of that govt must
be treated by the courts of that country.
Analysis: The de-facto govt acquires the sovereign immunity from being sued in the courts of a
recognising state.
Further analysis (constitutional
morality/ethicality):
Instruments cited: H.O aggarwal and S.K. kapur Books on International Law.
Cases cited: Bank of Ethiopia vs. National Bank of Egypt & Ligouri(1937)3 All ER 8, The Arantzanu
Mendi(1939)1 All ER 719.

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