1987

UK

Libyan Arab Foreign Bank v Bankers Trust Company Queen’s Bench

The Libyan Bank had money deposited in London Branch of Bankers Trust, a NY corporation. On 1986 the US president order to ‘froze’ all Libyan assets in the US, according to NY law, not English law, that include the Libyan account in London. Libya tried to recover the money but the Bank said that it was prohibited, then demanded in English Courts

The law of the contract is the law of the place where the account is kept, London. The actual entries of the London account were made in London and therefore that is where the account was kept. The Libyan Bank is entitled to recover the money on claim. Damages must be assessed