Fact Pattern 52-1B
Sociedad Guarantia , 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 certain 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 52-1B. Under the principle of comity, the U.S. court in Tri-national's suit is most likely to

Question

Fact Pattern 52-1B 
Sociedad Guarantia , 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 certain 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 52-1B. 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 refers to the willingness of one nation to give effect to the laws and judicial decisions of another nation out of deference and respect. In this case, since SG filed for bankruptcy under Mexican law, the U.S. court is likely to give comity to the Mexican court's jurisdiction over the matter. Therefore, the U.S. court is most likely to dismiss Tri-national's suit, as the funds are subject to Mexican bankruptcy law and the Mexican court's orders.