New York Governor Kathy Hochul has signed into law a new requirement requiring museums to indicate publicly any object in their collection that was displaced by the Nazis as part of what Congress has rightly called the largest organized theft of art in human history. The significance of this new rule is clear: New York is the center of the art world, and its museums hold a unique place of prominence. As readers of this blog or of my book A Tragic Fate-Law and Ethics in the Battle Over Nazi-Looted Art know, my view has long been that American museums vary widely in their candor and proactive approach to the issue of Nazi-looted art in their collections. Many have shown admirable initiative in probing their collections, while others have shown a regrettable passivity in waiting to receive and then deflect claims. Whether this bill will move the needle on that balance is the question. Transparency and disclosure have been the defining goals of the modern restitution era. This new law serves many of those ideals, but some unintended consequences may follow.
Topics: Metropolitan Museum of Art, American Alliance of Museums, Nazi-looted art, Foreign Sovereign Immunities Act, Washington Conference on Holocaust Era Assets, Supreme Court, Washington Principles on Nazi-Confiscated Art, AAM, Museum of Modern Art, Nuremberg race laws, Washington Conference Principles on Nazi-Stolen Ar, Association of Art Museum Directors, Washington Department of Labor and Industries, Solomon R. Guggenheim Museum, Museum of Fine Arts Boston, AAMD, Military Government Law 59, State Department, Holocaust Expropriated Art Recovery Act, HEAR Act, A Tragic Fate, Law and Ethics in the Battle Over Nazi-Looted Art, Governor Kathy Hochul, Reich Citizenship Law, Animal House, Kevin Bacon
Consistent with efforts in recent years to apply banking laws to the art market, the prospects of passage of a bill in Congress that would apply those rules to a broad category of advisors and attorneys have recently increased. The “ENABLERS Act,” a gimmick of nomenclature apparent from the moment it was proposed, was briefly attached to the annual National Defense Authorization Act, which in keeping with longstanding tradition easily passed the U.S. House of Representatives on July 14, 2022. This tactic, which was also used to extend the reach of the Bank Secrecy Act to antiquities dealers in 2021, greatly enhances the odds that what seemed initially like an unserious publicity stunt might become law. Readers of the Art Law Report will not be surprised at a critical view here of the effort to place a square peg—the art market—into a round hole—bank oversight. This bill is considerably worse, however. Compounding the confusion is that despite widespread coverage about its attachment to the NDAA, the ENABLERS Act as originally proposed is not in the version of the NDAA that passed the House of Representatives last week (it was added then revised, notwithstanding at least one report to the contrary). What was approved for the moment omits the worst parts of the ENABLERS Act. But the perception that it is a done deal ironically may have the effect of lowering vigilance about its prospects. Even if this bill never becomes law, it has come much closer than it should have.
Topics: Congress, Supreme Court, House of Representatives, AML, Money laundering, FinCEN, Financial Crimes Enforcement Network, Illicit Art and Antiquities Trafficking Protection, suspicious activity reports, Bank Secrecy Act, 31 U.S.C. § 5312(a), National Defense Authorization Act, Treasury Department, ENABLERS Act, NDAA, art market regulation, Tom Malinowski, dealers in antiquities, JOHN HENRY WIGMORE, Berd v. Lovelace, Federal Rules of Evidence, Panama Papers, International Consortium Investigative Journalists, Offshore Leaks database, English Chancery Court, Blackburn v. Crawfords Lessee, Pandora Papers
Today I am pleased to announce that I have filed a brief in the Supreme Court of the United States as counsel of record for amicus curiae Mark B. Feldman, former U.S. Department of State Acting Legal Adviser. We filed the brief in the case of Cassirer et al. v. Thyssen-Bornemisza Collection Foundation (“TBC”). Cassirer is the long-running dispute over title to Rue St. Honoré, après-midi, effet de pluie (Rue St. Honoré, Afternoon, Rain Effect) by Impressionist painter Camille Pissarro. The painting once belonged to Lilly Cassirer, a Jewish woman in Berlin in 1939, from whom Nazi agents “bought” the painting. The case before the Supreme Court is not about whether the painting was stolen—it is undisputed that it was. Rather, the Supreme Court will review the Ninth Circuit’s decision that Spanish law, not California law, should govern the ownership rights.
Topics: Guelph Treasure, Lilly Cassirer, Foreign Sovereign Immunities Act, Supreme Court, SPK, Stiftung Preussischer Kulturbesitz, Hermann Goering, FSIA, expropriation exception”, sovereign immunity, UNESCO, Rue St. Honoré, Camille Pissarro, Baron Hans-Heinrich Thyssen- Bornemisza, Cassirer v. Thyssen-Bornemisza Collection, Welfenschatz, Jakob Scheidwimmer, Philipp v. F.R.G., Mark B. Feldman
I am pleased and humbled to report that Chambers and Partners has issued its 2021 High Net Worth Guide Rankings, and that I was ranked as a Band 2 Ranked Individual in Art and Cultural Property Law rankings for the United States. Chambers is a thorough and highly regarded practice ranking, and the recognition is a validation of the art law team at Sullivan at the ten-year anniversary of our practice group. From the rankings:
Nicholas O'Donnell of Sullivan & Worcester in Boston is principally known for his work on restitution matters. "He is well known in the restitution field and writes very frequently on the subject," says a source, adding: "He is extremely eloquent and knowledgeable on the subject." Another source says that "Nick O'Donnell is an exceptional lawyer," and has written what this source describes as "the leading book on Nazi looted art from a legal perspective." Several sources highlight O'Donnell's recent work on perhaps the most high-profile art restitution case in decades, the Guelph Treasure matter which went to the US Supreme Court in December 2020. One international interviewee says that "his knowledge of restitution cases, particularly in Austria and Germany, is unparalleled from a US perspective," adding that "on restitution-related art matters, he really stands head and shoulders above others."
Topics: Guelph Treasure, MItchell Stein, art law, Supreme Court, Restitution, Sullivan & Worcester LLP, Restitution and Repatriation, International Bar Association, Responsible Art Market, Chambers and Partners, Erika Todd
(WASHINGTON-October 22, 2020) The heirs to the Jewish art dealers who were forced to sell the medieval devotional art collection known as the Welfenschatz (in English, the Guelph Treasure) to agents of Hermann Goering in 1935 filed their brief today in the Supreme Court of the United States. It can be viewed at this link. The Supreme Court is set to hear argument on December 7, 2020, on whether the Foreign Sovereign Immunities Act (FSIA) and its “takings clause” create jurisdiction over the heirs’ claims for restitution of the Welfenschatz—as all reviewing courts so far have held. The Welfenschatz is held by the Stiftung Preussischer Kulturbesitz (in English, the Prussian Cultural Heritage Foundation).
Topics: Third Reich, Guelph Treasure, Gestapo, Z.M. Hackenbroch, Prussia, Germany, Nazi-looted art, Foreign Sovereign Immunities Act, Markus Stoetzel, Supreme Court, Mel Urbach, SPK, Nuremberg race laws, Stiftung Preussischer Kulturbesitz, Hermann Goering, FSIA, NS Raubkunst, Sullivan & Worcester LLP, J.S. Goldschmidt, Gerald Stiebel, Prussian Cultural Heritage Foundation, Adolf Hitler, Nicholas M. O'Donnell, Alan Philipp, Welfenschatz, I. Rosenbaum, Paul Körner, Wannsee Conference, Jed Leiber, House of Brunswick (Braunschweig)-Lüneberg, Emily Haber, Wilhelm Stuckart, Final Solution
On behalf of my clients seeking restitution of the Guelph Treasure, or Welfenschatz, we filed today our supplemental brief with the U.S. Supreme Court in response to the Brief of the United States as Amicus Curiae that the Solicitor General’s office submitted on May 26, 2020. You can read today’s brief here, and read more about the particular problems with the Solicitor General’s filing here, most notably the contention that the Nazis’ property crimes against German Jews should be considered a “domestic” issue that doesn’t implicate international law under the Foreign Sovereign Immunities Act (FSIA). It was particularly distressing that the brief was signed not only by the U.S. Department of Justice, but also the State Department.
The filing follows an increasing pattern of disregard for bipartisan Congressional action, in this case the 2016 Holocaust Expropriated Art Recovery Act. Similarly, the 2017 Justice for Uncompensated Survivors Act that was enacted specifically to counter Poland’s and others’ hostility to restitution for Holocaust era assets has been ignored. The JUST Act required that the State Department issue a report on other countries’ restitution progress no later that November 9, 2019, yet no report has been issued. The State Department has a dedicated page on the JUST Act...which simply lists the law (Poland's embassy has its own rather self-serving version too). Something very curious is going on with restitution at the State Department, all the more heartbreaking given the 80 years of leadership on the topic by the United States.
Late Tuesday evening—the day after Memorial Day no less—the United States Office of the Solicitor General filed a brief amicus curiae in our clients’ pending case against the Federal Republic of Germany and the Stiftung Preussischer Kulturbesitz for restitution of the Guelph Treasure (in German, the Welfenschatz). This brief was in response to the Supreme Court’s invitation in January that the SG file a brief expressing the views of the United States. In an unprecedented abdication of 80 years of leadership redressing Nazi-looted art, the Solicitor General argued that there is no circumstance in which a Nazi-forced sale victimizing a German Jew in the 1930s could constitute a violation of international law such the Foreign Sovereign Immunities Act would confer jurisdiction over either Germany or the SPK. The U.S. government has taken the position that only property claims against non-Germans suffice—even though, of course, the U.S. government has acknowledged in every relevant context since the early 1940s that Jews ceased to be full members of German society on the day Hitler assumed power: January 30, 1933. This is an historic disgrace. Germany has rightly been shamed for minimizing in court over the last five years the genocidal character of its persecution against Jews, but for the United States to do so the day after we rightly honored the hundreds of thousands of Americans who died to defeat Nazi Germany is appalling.
Topics: Guelph Treasure, Monuments Men, Foreign Sovereign Immunities Act, Washington Conference on Holocaust Era Assets, Supreme Court, Holocaust Victims Redress Act, Stiftung Preussischer Kulturbesitz, Hermann Goering, FSIA, Monuments Fine Arts and Archives Program, Washington Principles, Federal Republic of Germany, Welfenschatz, Military Government Law 59, Holocaust Expropriated Art Recovery Act, HEAR Act, Wannsee Conference, D.C. Circuit, Military Government Law No. 59, london declaration
In a decision long awaited by artists and auction houses in particular, the Ninth Circuit Court of Appeals has ruled that the California Resale Royalty Act of 1976 (CRA)—America’s only droit de suite—is unconstitutional top regulate any sales of art outside of California. The court concluded, however, that that portion of the law is severable from the rest, and let the regulation of in-California sales stand for further interpretation by a subsidiary panel of the appeals court. There are two likely aftereffects of this decision. Galleries and auction houses can put any concerns to rest about sales in New York in particular, but one has to wonder about the effect it will have on putting items for sale in California, which will effectively have a premium not present in other states. It also raises the possibility that the resulting piecemeal framework will motivate movement on the pending federal bill (the American Royalties Too (ART) Act of 2015) concerning resale royalties. Could this be the development that prompts movement in Congress?
Topics: Legislation, Resale Royalties, Chuck Close, Supreme Court, Christie's, Cal. Civ. Code § 986(a), Dormant Commerce Clause, droit de suite, sales tax, Cal. Redev. Ass’n v. Matosantos, use tax, American Royalties Too (ART) Act of 2015, California Resale Royalty Act, Copyright, Ninth Circuit Court of Appeals, Sotheby's, eBay
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