Luther v Sagor
[1921] 3 King's Bench 53219211 min read
The case in brief30-second read
- Facts
- Luther & Co. owned a veneer and plywood factory in Russia. Soviet government nationalised the factory in 1919. Sagor & Co. purchased timber from the Soviet government.
- Issue
- Whether acts of a government take legal effect in English courts upon recognition by the Crown.
- Held
- Recognition by the executive is conclusive for the courts.
- Principle
- Once a government is recognised by the executive (Crown), the courts must accept its acts as valid sovereign acts. Recognition is conclusive and courts cannot go behind it. Acts of an unrecognised government have no legal effect in domestic courts.
Facts
- Luther & Co. owned a veneer and plywood factory in Russia
- Soviet government nationalised the factory in 1919
- Sagor & Co. purchased timber from the Soviet government
- Luther sued Sagor in England claiming title to the timber
- Between trial and appeal, UK recognised the Soviet government
Issue
- Whether acts of a government take legal effect in English courts upon recognition by the Crown.
Held
- Recognition by the executive is conclusive for the courts
- Once recognised, the Soviet government's nationalisation decree was valid from its date (retroactive effect)
- Luther's title was extinguished by the valid sovereign act
- Luther's claim dismissed
Ratio decidendi
The courts of this country will recognise the validity of the acts of a foreign government once that government has been recognised by the Crown. Recognition is retroactive: it validates all prior acts of that government from the date it assumed power.
Exam use
How to use it in an answer
- Key case on recognition and its domestic legal effects
- Shows retroactive effect of recognition
- Key line: "In Luther v. Sagor (1921), the Court of Appeal held that once a government is recognised by the Crown, its sovereign acts must be given legal effect, including retrospectively."
Cite this
Citation
Luther v. Sagor [1921] 3 King's Bench 532Reported: [1921] 3 KB 532. This is an educational summary, not the judgment itself. Cite the reported version in professional or academic work.