Banco Nacional de Cuba v. Sabbatino
In Banco Nacional de Cuba v. Sabbatino, 376 U.S. 398 (1964), the Supreme Court considered the right of an instrumentality of a hostile foreign government to file suit in U.S. courts.
The United States had severed formal diplomatic relations with Cuba, but had not derecognized it as a sovereign.
The Court rejected the argument that a hostile government should not be allowed to litigate in U.S. courts. Sabbatino looked to the executive's position in support of its decision:
"The view that the existing situation between the United States and Cuba should not lead to a denial of status to sue is buttressed by the circumstance that none of the acts of our Government have been aimed at closing the courts of this country to Cuba, and more particularly by the fact that the Government has come to the support of Cuba's "act of state" claim in this very litigation." Id. at 411.