Art Law Report

Herzog Heirs’ Claims Against Hungary Survive Dismissal Under FSIA

Posted by Nicholas O'Donnell on March 24, 2016 at 12:22 PM

Expropriation Exception Saves Case, But District Court Holds Commercial Activity Exception Does Not Apply, Claims to Two of the Paintings at Issue are Dismissed as Well

The ongoing litigation between the heirs of Baron Mor Lipot Herzog and several state owned Hungarian museums has produced a new decision interpreting the scope of the Foreign Sovereign Immunities Act (FSIA), a frequent tool used to seek jurisdiction over Nazi-looted art claims brought in U.S. federal court. Relying on Supreme Court and D.C. Circuit cases in the last few months, the U.S. District Court held that claims for all but two of the paintings at issue can proceed under the FSIA’s “expropriation exception” codified in 28 U.S.C. § 1605(a)(3), but that the FSIA’s “commercial activity exception”—which the D.C. Circuit had held applicable in 2013 to the same case—could not be invoked based on the facts in the record developed in discovery. De Csepel v. Republic of Hungary, 2016 U.S. Dist. LEXIS 32111 (March 14, 2016).

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Topics: David de Csepel, commercial activity exception, Hungary, Foreign Sovereign Immunities Act, Budapest University of Technology and Economics, Hungarian National Gallery, Budapest Museum of Fine Arts, expropriation exception”, Restitution, World War II

DC Circuit Reinstates All Claims that Were Dismissed in Herzog Case Against Hungary-UPDATED

Posted by Nicholas O'Donnell on April 23, 2013 at 9:35 AM

The DC Circuit Court of Appeals has reinstated the entire set of claims brought by the Herzog heirs against the Hungarian National Gallery, the Budapest Museum of Fine Arts, the Museum of Applied Arts, and the Budapest University of Technology and Economics. The appellate decision focuses on the claim that an agreement was reached after WWII to hold the paintings for their owners, not the claims relating to their wartime fate. In so doing, the court pushed to the side a whole range of defenses for sovereign defendants that have been increasingly successful. The court also reinstated claims to ownership of 11 works whose title was previously litigated, in an opinion that sets a low bar for collateral attacks on foreign judgments.

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Topics: commercial exception, David de Csepel, Nazi Germany, Angela Maria Herzog, Hungary, WWII, Viktor Orban, res judicata, Julia Alice Herzog, Budapest University of Technology and Economics, Baron Mor Lipot Herzog, Hungarian National Gallery, Jori Finkel, Budapest Museum of Fine Arts, Adolf Eichmann, FSIA, expropriation exception”, Restitution, 28 U.S.C. § 1605(a)(2), 28 U.S.C. § 1605(a)(3), World War II, Foreign Sovereign Immunities, Alison Frankel, András Herzog, Janos Lazar, Museum of Applied Arts

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