QUESTION 1

International Law & Dispute Resolution Soon after the dictator Fiddle came to power in the State of Cuba, that State nationalised a sugar company that had been owned by United States (US) nationals. Previously the company had a contract to deliver US $175 million of sugar to State M. To get permission to ship this sugar from Cuba, the broker who had arranged the sale agreed to pay the US $175 million to the Banco Nacional de Cuba (BNC), an agency of the Cuban government. The former owners of the sugar company then brought a legal action in the US claiming that the US $175 million belonged to them and not to the BNC bank, and that Cuba had violated International Law by expropriating their property and not paying them adequate compensation for it. How would a US Court decide the legal action?