United States v. Pink Case Brief Summary | Law Case Explained

United States v. Pink | 315 U.S. 203 (1942)

The Constitution centralizes control over foreign relations in the federal government. Thus, state law and policy are subordinate to national foreign policy, as the Supreme Court explains in United States versus Pink.

The First Russian Insurance Company operated a branch in New York. In nineteen eighteen, the Russian government nationalized Russia’s insurance industry and confiscated the property of all Russian insurance companies, wherever located. Nevertheless, First Russian’s New York branch continued to operate. Several years later, the New York Supreme Court ordered Louis Pink, state superintendent of insurance, to take possession of First Insurance’s assets to pay the claims of the company’s domestic creditors. Paying these claims left a balance of approximately one million dollars. Thereafter, the New York Court of Appeals ordered Pink to use this balance to pay the claims of First Russian’s foreign creditors and distribute the remainder to First Russian’s board of directors.

Shortly after that, the United States government recognized the Union of Soviet Socialist Republics as the official Russian government. In connection with the recognition, the Soviet government assigned certain claims to the American government. This assignment, accomplished in an exchange of letters between the president and the Soviet foreign minister, was known as the Litvinov Assignment.

The United States sued Pink in New York Supreme Court, seeking to recover the balance of First Russian’s assets based on the Litvinov Assignment. The trial court granted summary judgment for Pink. The Appellate Division affirmed, as did the New York Court of Appeals. The United States Supreme Court granted cert.

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