A federal appeals court has upheld the growing consensus that the Foreign Sovereign Immunities Act (FSIA) confers jurisdiction over foreign state actors in possession of art allegedly looted by and/or overseen by the Nazis. Upholding last year’s District Court decision, the U.S. Court of Appeals for the D.C. Circuit affirmed the ruling in De Csepel v. Republic of Hungary that denied several Budapest museums’ motion to dismiss, while allowing the Republic of Hungary itself out of the case. This is the heirs second successful trip to the appellate court, where their claims were upheld in 2013. The case is the subject of a chapter in my newly-released book A Tragic Fate--Law and Ethics in the Battle Over Nazi-Looted Art (ABA Publishing).
Topics: FSIA, Foreign Sovereign Immunities Act, Baron Herzog, David de Csepel, Angela Maria Herzog, András Herzog, Hungarian National Gallery, Budapest Museum of Fine Arts, Budapest University of Technology and Economics, expropriation exception”, genocide, Thyssen-Bornemisza Collection, Welfenschatz, Stiftung Preussischer Kulturbesitz, SPK, Berlin, Federal Republic of Germany, Cassirer v. Kingdom of Spain
The decision on Friday to allow our clients’ claims to proceed against German and the Stiftung Preussischer Kulturbesitz for the restitution of the Guelph Treasure (or Welfenschatz) is ground-breaking in important respects, and a welcome part of a consistent progression in the law of sovereign immunity over claims for Nazi-looted art. As we noted in our initial reaction, it is the first decision in which a U.S. court has held that it has jurisdiction over Germany or an agency or instrumentality of it under the Foreign Sovereign Immunities Act (FSIA) for a claim to Nazi-looted or purchased art—though others have certainly tried—in this case finding the so-called expropriation exception applies. Critically, it recognizes that claims about forced sales in the early days of Nazi persecution indeed create jurisdiction. Moreover, the court agreed with our clients that Germany’s various excuses to avoid litigating the substance of a forced sale involving Hermann Goering based on pleas for deference or respect to the flawed Advisory Commission are no reason to dismiss the case.
Topics: Guelph Treasure, Welfenschatz, FSIA, Foreign Sovereign Immunities Act, NS Raubkunst, Nazi-looted art, Stiftung Preussischer Kulturbesitz, SPK, Germany, Advisory Commission, sovereign immunity, expropriation exception”, HEAR Act, Hermann Goering, Preemption
Under Landmark Ruling, Germany Must Now Defend Nazi-Looted Art Claims in U.S. Court
WASHINGTON (March 31, 2017)- The United States District Court for the District of Columbia has ruled that claims over the famed Guelph Treasure can proceed against Germany in a United States court. This is the first time Germany will have to defend itself in the U.S. against allegations of looted Nazi art and artifacts. The claims arise out of the 1935 forced sale by a consortium of Jewish art dealers to Hermann Goering’s minions of the famed collection of medieval artifacts known as the Guelph Treasure. The claims were filed by clients of Sullivan & Worcester LLP against the Federal Republic of Germany and the Prussian Cultural Heritage Foundation (the Stiftung Preussischer Kulturbesitz, or SPK). The court rejected the Defendants’ arguments that they are immune from suit and held that the Plaintiffs’ claims can be considered a taking of property in violation of international law for the purpose of evaluating the court’s jurisdiction over Germany and the SPK.. Jed Leiber, Alan Philipp, and Gerald Stiebel may now proceed to litigate their claims for their property’s rightful return. Leiber, Philipp, and Stiebel are also represented by S&W’s co-counsel in this matter, Markus Stötzel and Mel Urbach, experienced counselors in the return of Nazi-looted art who have been fighting this case for over eight years and who decried Germany continuing to defend the Nazis’ and Herman Goering’s theft from Jews.
Topics: Guelph Treasure, Welfenschatz, Nazi-looted art, NS Raubkunst, SPK, Stiftung Preussischer Kulturbesitz, Federal Republic of Germany, Hermann Goering, Nicholas M. O'Donnell, Mel Urbach, Markus Stötzel, Foreign Sovereign Immunities Act, FSIA, expropriation exception”, J.S. Goldschmidt, I. Rosenbaum, Saemy Rosenberg, Zacharias Hackenbroch, Adolf Hitler, Paul Körner, Wannsee Conference
Congress has passed and President Obama is expected to sign two bills related to looted art and the availability of U.S. courts to hear disputes over them. The Holocaust Expropriated Art Recovery (HEAR) Act of 2016 and the Foreign Cultural Exchange Jurisdictional Clarification Act (FCEJCA, for lack of a handy acronym) were both passed without objection both the House of Representatives on December 10, 2016, and are expected to be signed by President Obama shortly. The HEAR Act is a major shift in the law of Nazi-looted art claims specifically, while the FCEJCA is controversial but unlikely to have a broad impact one way or another. It is perhaps most remarkable that in an era of unique partisanship and political polarization, members of Congress from both parties and the President agreed on anything, let alone unanimously (sponsors include such unusual allies as Ted Cruz, Richard Blumenthal, John Cornyn, and Charles Schumer).
Topics: Holocaust Expropriated Art Recovery Act, Immunity from Seizure Act, 22 U.S.C. § 2459, Russia, Chabad, 28 U.S.C. § 1605, expropriation exception”, FSIA, Foreign Sovereign Immunities Act, Welfenschatz, Alfred Flechtheim, Foreign Cultural Exchange Jurisdictional, Guelph Treasure, World War II, Restitution, Nazi-looted art, NS Raubkunst, Legislation, Ted Cruz, Charles Schumer, John Cornyn, Richard Blumenthal, Mikhail Piotrovsky, Politico, State Hermitage Museum, Anita Difanis
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).
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
I’ve been talking quite a bit to friends, colleagues and clients about the impact of last week’s decision in the Cassirer v. Thyssen Bornemisza case. The New York Times had a follow up article yesterday which was an interesting treatment of the various themes at work in the case and in restitution cases in the United States generally these days. In fact, I think the effect is mostly limited, except to the extent that the decision assumes and treats as uncontroversial important principles about sales under duress and is a case that resolved title under the Foreign Sovereign Immunities Act (FSIA). As we predicted, the Times article makes clear that the museum has absolutely no intention of giving the painting back, but did float the idea of some recognition of the historical circumstances, which is progress (certainly compared to other instances in which obvious circumstances of duress are denied).
Topics: Lilly Cassirer Neubauer, Terezin Declaration, Thyssen-Bornemisza Collection, Rue St. Honoré après-midi êffet de pluie, Jacques Goudstikker, California Code of Civil Procedure § 354.3, Nazi-looted art, Foreign Sovereign Immunities Act, Washington Conference Principles, Bakalar v. Vavra, Fritz Grünbaum, FSIA, adverse possession, expropriation exception”, Restitution, Marei Von Saher, sovereign immunity, Egon Schiele, Jakob Schweidwimmer, World War II, Foreign Sovereign Immunities, Restatement (Second) of Conflict of Laws § 222, Altmann v. Republic of Austria, Camille Pissarro, foreign affairs doctrine, Ninth Circuit Court of Appeals, Museums, Baron Hans-Heinrich Thyssen- Bornemisza, 28 U.S.C. § 1605
One of the longest running art restitution litigations in the United States has been dismissed for a second time, with another appeal likely to follow. The heirs of Lilly Cassirer Neubauer have been pursuing the return of Camille Pissarro’s Rue St. Honoré, après-midi, êffet de pluie from the Thyssen-Bornemisza Collection in Madrid for more than ten years, but on June 4, 2015 the U.S. District Court in Los Angeles ruled that the Spanish museum has acquired full title to the painting by adverse possession. The key aspect of the decision is the court’s resolution of the choice of law question, namely, should California law or Spanish law apply to the question of who owns the painting? After a lengthy analysis the court determined that Spanish law applies, and that the museum has possessed the painting long enough to have become the owner regardless of the fact that it was sold under duress. So now a case that has already been to the Ninth Circuit Court of Appeals twice will almost certainly head back a third time. The court concluded its decision by appealing to the parties to “pause, reflect, and consider whether it would be appropriate to work towards a mutually-agreeable resolution of this action, in light of Spain’s acceptance of the Washington Conference Principles and the Terezin Declaration, and, specifically, its commitment to achieve “just and fair solutions” for victims of Nazi persecution.” But it is hard to see why that would happen. Notwithstanding the dictates of the Washington Principles, the Collection has been quite content to resist the claim. Now that it has won, it is hard to imagine it suddenly taking a different view.
Topics: Lilly Cassirer Neubauer, Terezin Declaration, Thyssen-Bornemisza Collection, Rue St. Honoré après-midi êffet de pluie, Jacques Goudstikker, California Code of Civil Procedure § 354.3, Nazi-looted art, Foreign Sovereign Immunities Act, Washington Conference Principles, FSIA, adverse possession, expropriation exception”, Restitution, Marei Von Saher, sovereign immunity, Jakob Schweidwimmer, World War II, Foreign Sovereign Immunities, Restatement (Second) of Conflict of Laws § 222, Altmann v. Republic of Austria, Camille Pissarro, foreign affairs doctrine, Ninth Circuit Court of Appeals, Museums, Baron Hans-Heinrich Thyssen- Bornemisza, 28 U.S.C. § 1605, Welfenschatz
The release last week of The Woman in Gold, the feature film adaptation of The Lady in Gold by Anne Marie O’Connor, starring Helen Mirren and Ryan Reynolds as Maria Altmann and her attorney E. Randol Schoenberg, respectively, as well as Tatiana Maslany as the younger Altmann and Daniel Brühl as Austrian journalist Hubertus Czernin, is an important opportunity to reflect on the legal importance of the case. Even today, the case provides lessons about the way some victims are still treated, and how one individual can make sure the past is never forgotten. The looting of Jewish art collections was a concerted effort whose prominence should never be forgotten. And perhaps even more, it robs those who did survive of the dignity of remembering their family experiences. Consider: the next time you gather with your extended family, look around the room. Pick something that you’re accustomed to seeing when the family meets. Now, imagine it had been stolen or surrendered under duress, and was hanging on the wall of a national collection that denied it had been taken. How would you feel? This is the dilemma faced by many claimants, and it is precisely why Altmann matters so much.
Topics: Maria Altmann, The Lady in Gold, Adele Bloch-Bauer, Guelph Treasure, The Woman in Gold, Daniel Brühl, Germany, Nazi-looted art, Academy of Fine Arts, Foreign Sovereign Immunities Act, Hitler, Tatiana Maslany, Anne Marie O’Connor, Supreme Court, A Few Good Men, Belvedere, E. Randol Schoenberg, World Jewish Congress, Stiftung Preussischer Kulturbesitz, Ryan Reynolds, FSIA, expropriation exception”, Restitution, Neue Galerie, World War II, Foreign Sovereign Immunities, Switzerland, Ferdinand Bloch-Bauer, Helen Mirren, Museums, Fritz Altmann, Gustav Klimt, Vienna, Welfenschatz, Hubertus Czernin, Ronald Lauder, Austrian National Gallery
A quirk of parliamentary procedure is that any bill in Congress exists only for so long as that particular Congress is in session. This week, the 114th Congress took its seats, meaning that any bill not passed by both the House of Representatives and the Senate, and signed by the President, is a dead letter. This is the fate of many, many bills—indeed most.
Topics: Legislation, Resale Royalties, Chuck Close, Moral Rights, Nazi-looted art, Foreign Sovereign Immunities Act, 28 U.S. § 1605, Art Law Day, 114th Congress, 22 U.S.C. § 2459, City of Amsterdam, Rep. Jerrold Nadler (D-NY), FSIA, expropriation exception”, droit de suite, IFSA, Foreign Sovereign Immunities, Senate, House of Representatives, Immunity from Seizure Act, President, Foreign Cultural Exchange Jurisdictional Immunity
The German Advisory Commission for the Return of Cultural Property Seized as a Result of Nazi Persecution, Especially Jewish Property (Beratende Kommission) has issued its latest decision concerning allegedly Nazi-looted art in German museums. For the second case in a row after the widely (and wisely) derided opinion not to restitute the Welfenschatz or Guelph Treasure at the Stiftung Preussischer Kulturbesitz in Berlin, the commission (known for its presiding member, former German Supreme Constitutional Court judge Jutta Limbach) has recommended against restitution, this time over the claim by heirs of Clara Levy to The Three Graces (Drei Grazien) by Lovis Corinth (1902/1904). The decision (available only in German) is riddled with poor logic and basic historical errors. In short, while it may be that the painting was indeed delivered to Clara Levy’s daughter in the United States at Clark’s express instruction, that is far less clear than the commission states, and its decision further makes a number of assumptions about the circumstances of Jews in occupied or about-to-be occupied territories that undermine its credibility considerably.
Topics: Berlin, Else Bergmann, Schleifmühle, Guelph Treasure, Hildebrand Gurlitt, Cornelius Gurlitt, Ludwig Levy, Fritz Levy, Rita Hubbard, Germany, Nazi-looted art, bill of lading, Especially Jewish Property, Buchholz Gallery, Madame Soler, German Advisory Commission for the Return of Cultu, San Francisco, Entartete Kunst, Beratende Kommission, Stiftung Preussischer Kulturbesitz, FSIA, Curt Valentin, expropriation exception”, Gurlitt, Restitution, Max Huggler, Mendelssohn-Bartholdy, Clara Levy, Sigfried Rosengart, Luxembourg, Henry Zacharias, Compagnie Generale Transatlantique Hol Lesquette, World War II, Foreign Sovereign Immunities, Pinakothek der Moderne, degenerate art, beschlagnahmte Kunst, Jutta Limbach, Kunstmuseum Bern, Drei Grazien, Pablo Picasso, Lovis Corinth, Museums, Three Graces, Bavarian State Painting Collections, Federal Republic of Germany, Paula Levy, Kurt Buchholz, Welfenschatz, Limbach Commission, New York, Bayerische Staatsgemäldesammlungen