BANCO PARA EL COM. EXTERIOR de CUBA v. Steamship Ruth Ann, 12-60.

• Decision Date: 22 April 1964
• Docket Number: No. 12-60.,12-60.
• Citation: 228 F. Supp. 501
• Court: U.S. District Court — District of Puerto Rico
• Parties: BANCO PARA EL COMERCIO EXTERIOR de CUBA, Libelant, v. The STEAMSHIP RUTH ANN, her engines, tackle, apparel, equipment, etc., in rem, and against P & E Shipping Corporation, and all persons lawfully intervening for their interests in said steamship, etc., in personam, Respondents.

228 F. Supp. 501

BANCO PARA EL COMERCIO EXTERIOR de CUBA, Libelant, v. The STEAMSHIP RUTH ANN, her engines, tackle, apparel, equipment, etc., in rem, and against P & E Shipping Corporation, and all persons lawfully intervening for their interests in said steamship, etc., in personam, Respondents.

No. 12-60.

United States District Court D. Puerto Rico.

April 22, 1964.

Hartzell, Fernández & Novas, San Juan, P. R., Rabinowitz & Boudin, New York City, for libelant.

Isaias Rodriguez Moreno, San Juan, P. R., Poles, Tublin & Patestides, New York City, for respondents.

RUIZ-NAZARIO, Chief Judge.

On April 4, 1961, this court held, in a memorandum opinion, that the in rem respondent, the "SS Ruth Ann", a Liberian vessel owned by the in personam respondent, P & E Shipping Corporation, had breached its duty to deliver certain prepaid cargo to the libelant, Banco Para El Comercio Exterior de Cuba, an instrumentality of the Government of Cuba. The facts are stated in said Memorandum and in the Findings of Fact filed herein on May 16, 1961.

The respondents appealed, and the Court of Appeals for the Circuit, in its opinion of September 5, 1962 (307 F.2d 415, 417-418) sua sponte raised the question of the standing of a Cuban government corporation to sue in the Courts of the United States, and vacated this Court's decree under review therein and remanded the cause to this court with the direction that it "ascertain from the Department of State, appellee's relationship with the Cuban government, the status of that government in our courts during the period of cessation of diplomatic relations, and whether the United States or a national thereof would be allowed to maintain an action, similar to the one before us, in the courts of Cuba. (Case cited) If the report of the Department is unfavorable, then the District Court should dismiss the libel."

Pursuant to the said opinion of the Court of Appeals, this court, on November 14, 1962, addressed the following letter to the State Department:

"November 14, 1962 The Honorable The Secretary of State Washington 25, D. C.

Dear Mr. Secretary:

The case of Banco para el Comercio Exterior de Cuba vs. the Liberian vessel SS Ruth Ann and its respondent owner, the Liberian corporation P. & E. Shipping Corporation was filed in this Court on November 10, 1960. Trial therein was held on December 5 and 6, 1960 and a final decree in favor of libellant was rendered by this Court on May 16, 1961.

An appeal from said decree was taken by the respondent to the Court of Appeals for the First Circuit (sub-nom. P. & E. Shipping Corp. v. Banco para el Comercio Ext. de Cuba). Said appellate Court, in its decision of September 5, 1962 (307 F.2d 415) vacating this court's decree and remanding the case for further action here, ruled as follows:

`The issue of appellee's right to sue was not raised by appellant in the District Court. Therefore, the matter should be sent back to the District Court to give it the opportunity to ascertain from the Department of State, appellee's relationship with the Cuban government, the status of that government in our courts during the period of cessation of diplomatic relations, and whether the United States or a national thereof would be allowed to maintain an action, similar to the one before us, in the courts of Cuba. See National City Bank of New York v. Republic of China, supra, at pp. 363-364, 75 S.Ct. 423.' (H.N. 6, p. 418).

Mandate thereon was received in this Court on October 24, 1962.

Pursuant to the quoted direction I hereby formally request an expression of the views of your Department respecting the particulars listed in the above quoted portion of the decision of the Court of Appeals for the First Circuit.

Respectfully yours (s) CLEMENTE RUIZNAZARIO"

The following answer of December 6, 1962, was received by the Court:

"Address Official Communications to THE SECRETARY OF STATE Washington 25, D. C Seal of the State DEPARTMENT OF STATE Department Washington December 6, 1962

Dear Judge Ruiz-Nazario:

This is in reply to your letter of November 14, 1962, concerning the case of Banco para el Comercio Exterior de Cuba v. P. & E. Shipping Corporation. Pursuant to the mandate of the Court of Appeals for the First Circuit in its decision of September 5, 1962 (307 F.2d 415), you request an expression of the views of this Department as to "appellee's (Banco's) relationship with the Cuban Government, the status of that government in our courts during the period of cessation of diplomatic relations, and whether the United States or a national thereof would be allowed to maintain an action, similar to the one before us, in the courts of Cuba".

With respect to the status of the Cuban Government in our courts during the period of cessation of diplomatic relations, it may be stated that on January 7, 1959, the Government of the United States recognized the Government under the presidency of Dr. Manuel Urrutia Lleo, as the provisional Government of the Republic of Cuba. Although, on January 3, 1961, the Government of the United States severed diplomatic and consular relations with the Government of Cuba, this action did not constitute a cessation of recognition by the United States of the Government of Cuba. The United States has recognized without interruption and continues to recognize as the Government of Cuba, the Government of which Fidel Castro is Premier.

With regard to the other questions raised by the Court of Appeals, it will be necessary that this Department make inquiry, through the Government of Switzerland, of the Government of Cuba. Upon receipt of the information, we will immediately inform you of the results of that inquiry.

Sincerely yours For the Secretary of State (signed) LEONARD C. MEEKER Leonard C. Meeker Acting Legal Advisor The Honorable Clemente Ruiz-Nazario Chief Judge of the United States District Court for the District of Puerto Rico San Juan, Puerto Rico."

On April 22, 1963, the State Department wrote a letter to this Court in connection with the questions left unanswered in its letter of December 6, 1962, as follows:

"Address Official Communications to THE SECRETARY OF STATE Washington 25, D. C Seal of the State DEPARTMENT Department OF STATE Washington April 22, 1963

Dear Judge Ruiz-Nazario:

This is with further reference to your letter of November 14, and our reply of December 6, 1962, concerning the case of Banco para el Comercio Exterior de Cuba v. P. & E. Shipping Corporation. The Department has now received a reply from the Embassy of Switzerland at Havana in response to this Department's inquiry as to Banco's relationship with the Cuban Government and whether the United States or a national thereof would be allowed to maintain an action, similar to the one involved in the case cited, in the courts of Cuba.

It appears that under Law 891 of October 13, 1960, published in the Official Gazette of Cuba of the same day, all private banking concerns in Cuba were expropriated by the State, the functions peculiar to banks

...