Sullivan Blogs | Art Law Report | commercial activity exception

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

Claims by Mendelssohn Bartholdy Heirs over Picasso "Madame Soler" Dismissed, Court Finds No FSIA Jurisdiction After Evidentiary Hearings

Posted by Nicholas O'Donnell on July 1, 2014 at 10:49 AM

The U.S. District Court for the Southern District of New York has dismissed claims for ownership of Madame Soler by Pablo Picasso, currently at the Pinakothek der Moderne in Munich. Just as the relevance of Judge Jed Rakoff’s comments over another art restitution case brought by the heirs of Paul von Mendelssohn Bartholdy unexpectedly came to the fore recently, Judge Rakoff’s decision is now the most recent in a line of frustrations for the heirs of Mendelssohn Bartholdy, a victim of Nazi persecution in Berlin in the 1930s. The ramifications of this case may be fairly narrow, however, as the case was premised on allegations of specific transactions in New York rather than general allegations about the conduct of Germany. The claimants could appeal, or perhaps turn to the Limbach Commission if they could be heard (the Pinakothek is a subdivision of Germany for jurisdictional analysis, but it’s unclear at first blush if the Commission would view this claim as within its province).

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Topics: Paul von Mendelssohn Bartholdy, Berlin, commercial activity exception, Cornelius Gurlitt, Florence Kesselstatt, Judge Jed Rakoff, Halldor Soehner, Saint-Jean-Cap-Ferrat, Julius Schoeps, Upper East Side, Prussia, Max Liebermann, Night Café, Gurlitt Collection, Foreign Sovereign Immunities Act, Preussen, France, State Paintings Collection, Madame Soler, Museum of Modern Art, Edelgard von Lavergne-Peguilhen, Van Gogh, Munich, Justin K. Thannhauser, FSIA, expropriation exception”, Nazi persecution, Boy Leading a Horse, Restitution, David Toren, Bayerische Staatsgemäldesammlung, Bavarian State Ministry for Education and Culture, Free State of Bavaria, World War II, Foreign Sovereign Immunities, Pinakothek der Moderne, Bayerisches Staatsministerium für Bildung und Kult, Bundesländer, Altmann v. Republic of Austria, Freistaat Bayern, Le Moulin de la Galette, Kurt Martin, München, Pablo Picasso, Federal Republic of Germany, Limbach Commission, Wissenschaft und Kunst