Validity of an Assignment of a Claim Despite Violation of Foreign Exchange Regulations

Facts

The Jewish bank director Leo Keppich had an account with the Swiss Bank Corporation (SBG). In July 1948, Elemer Fogel, the brother of Keppich's wife, demanded the payout of the account balance on behalf of his parents Lajos and Matild Fogel-Fried. The SBG then paid out the balance. In April 1958, Dezsö Poljak informed the SBG that Keppich had assigned the balance to him in the years 1943/44. Poljak sued the SBG for payment of the balance.

Considerations

The Federal Supreme Court decided that the validity of the assignment is to be judged according to the law of the assigned claim. Although the assignment may have violated Hungarian foreign exchange law, the Federal Supreme Court rejected the application of this law, as it would violate Swiss public policy. The Federal Supreme Court found that the defendant had wrongfully paid out the balance to Elemer Fogel, as he was not the rightful heir. Therefore, it obliged the defendant to pay the amount…