Soviet Cannot Sue

The highest court in New York--the Court of Appeals--has a second time passed upon the status of the Soviet government, officially known as the Russian Socialist Federated Soviet Republic. The latest decision is to the effect that the present government of Russia cannot sue in our courts; an earlier case, decided in January of this year, held that it could not be sued. Both rulings were made on the ground that the Bolshevik regime has not been recognized by the Department of Slate at Washington. If it had been recognized it could have brought suit, since, as a matter of comity, that privilege is accorded to de jure sovereigns. But it could not have been made a party defendant, because, for obvious reasons, the law does not allow one sovereign to be brought before the municipal courts of another.

Considerable uncertainty preceded the decisions of the court of last resort, as the questions decided had never come up previously in any state. Lower tribunals in New York were unanimously of opinion that an unrecognized government has no status of any kind, and thus no standing in court as a party plaintiff. But an appellate unit decided that the Soviet government, being a de facto government, could be sued. This decision left all de facto governments in a precarious position in America, their liabilities were enforceable, but their assets were not collectible here. The result was immediately apparent. An attachment was levied on property of the Russian government; another on that of a Mexican consulate-general. Judgment was entered in a suit against the now defunct Kolchak government. The rulings of the Court of Appeals have resolved this confusion, and property in New York State belonging to, or claimed by, de facto governments will not change hands.

The records in the suits in which the Russian Socialist Federated Soviet Republic has been involved reveal the interesting fact that it has a duly authorized " Representative in the United States" and regular counsel.