Salimoff & Co. v. Standard Oil 186 N.E. 679 (1933)

Salimoff & Co. v. Standard Oil 186 N.E. 679 (1933)

Principle: It is not necessary to have je facto or de jure recognition of another country when they have effective control over the territory and the people of the country.

Fact: Mr. Salimoff was a Russian citizen and he had an oil company there which name was Salimoff & co. ON 1917 the Russian Government nationalized his company and thereafter Mr. Salimoff left Russia and came to USA. Later when Standard Oil come to an agreement with Russian to buy Oil, Russia send the Oil accordingly but when the Oil reached in USA Mr. Salimoff claimed that the Oils are his Oils, he pointed that as USA never recognized the government of Russia and Russia wrongfully take over his Company therefore USA cannot validate the rule of Russian law.

Issues:

Where Mr. Salimoff will the Oil as declaring the owner of the Oil?
Whether recognition is necessary for this case.

Decision: The United States government recognizes that the Soviet government has functioned as a de facto government since 1917, ruling within its borders. The courts cannot refuse to recognize a de facto government merely because the State Department has not recognized the Soviet government as a de jure government. Affirmed.

Reasoning: The there was no de jure recognition but Russian government had their effective control over the country so the where de facto government and they don’t need any formal je jure or de facto recognition.

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