Fact Pattern
Sociedad Guarantia (SG),a Mexican firm,borrows $1 million from Tri-national Bank,a U.S.firm.Later,SG files for bankruptcy under Mexican law and asks the Mexican court to order the reimbursement of payments on the loan.Tri-national files a suit against SG in a U.S.court,arguing that the funds do not belong to SG.
-Refer to Fact Pattern 8-1B.Under the principle of comity,the U.S.court in Tri-national's suit is most likely to

Question

Fact Pattern 
Sociedad Guarantia (SG),a Mexican firm,borrows $1 million from Tri-national Bank,a U.S.firm.Later,SG files for bankruptcy under Mexican law and asks the Mexican court to order the reimbursement of payments on the loan.Tri-national files a suit against SG in a U.S.court,arguing that the funds do not belong to SG.
-Refer to Fact Pattern 8-1B.Under the principle of comity,the U.S.court in Tri-national's suit is most likely to

Quizplus · Accepted Answer

The principle of comity is a doctrine that recognizes and respects the laws and judicial decisions of other countries, and seeks to promote cooperation and reciprocal treatment among nations. In this case, the U.S. court is likely to dismiss Tri-national's suit, as the issue of whether the loan funds belong to SG is a matter that should be resolved under Mexican law, in the context of SG's bankruptcy proceedings. By dismissing the suit, the U.S. court would show deference to the Mexican court's jurisdiction and avoid interfering with the administration of the bankruptcy case. Asking the Mexican court to drop SG's petition or ordering it to deny SG's request would be unlikely, as the U.S. court does not have the authority to dictate the actions of another country's court. Asking Tri-national to drop its suit would also be unlikely, as it would not address the underlying legal question raised by the case.

Fact Pattern Sociedad Guarantia (SG),a Mexican Firm,borrows $1 Million from Tri-National Bank,a