Luther v Sagor (UK) 1921

Luther v Sagor (UK) 1921

Principle: Once a government is recognized, its acts will be granted validity, even those prior to its recognition, known as retrospective effect.

Fact: Luther was a British Citizen used to run a Timber industry in Soviet Russia. ON 1917 the Russian Government nationalized his factory and thereafter Mr Luther left Russia to UK. In 1920 Mr. Sagor come to an agreement with Russian Nationalized business company to buy some timber, the company send the timber accordingly but when the timer reached in UK Mr. Luther claimed that the timbers are his timbers, he pointed that as UK never recognized the government of Russia and Russia wrongfully take over his factory therefore the civilized court of UK cannot validate the rule of Russian law. The lower court held the judgment in Luther’s favour but on appeal to the Kings Bench Division it held that they cannot interfere in  an internal matter of another state, because in the meantime Russia was given the de Facto Recognition, the court also declare the retrospective effective on that recognition form 1917

Issues:

  1. Where Russia is recognized by Britain?
  2. Whether the nationalization was legal or valid?

Decision: It was held that, British Government recognized the Government of Russia and retrospective effect will be applicable for that recognition. So the Nationalization by Russia was legal and valid.

Reasoning: Kings Bench Division it held that they cannot interfere in an internal matter of another state, because in the meantime Russia was given the de Facto Recognition, the court also declare the retrospective effective on that recognition form 1917. So the Nationalization by Russia was legal and valid.

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Rayhanul Islam

Legal activist & Practitioner - Editor - Researcher - Learner; A person who uses Logic & Law as his tool where psychology & Philosophy plays a role, he is on a quest to bring positive change to the legal sector of Bangladesh. He works as a lawyer and promotes legal knowledge and human right concept to the root level. More @ rayhan.lawhelpbd.com E-Mail: [email protected] or Call: +88 01711-386146

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