Courthouse Steps Decision Teleforum: Federal Republic of Germany v. Philipp

On February 3, 2021, the Supreme Court unanimously decided Federal Republic of Germany v. Philipp and Republic of Hungary v. Simon. The plaintiffs in Federal Republic of Germany are heirs of German Jewish art collectors who purchased a collection of medieval relics termed the Welfenschatz. As the Third Reich took control of Germany and began assimilating the great cultural achievements of the West, the Nazis government bought the Welfenschatz for one third of its value. Following World War II, the Welfenschatz changed hands, ultimately landing in a Berlin museum owned by the Federal Republic of Germany and maintained by the Stiftung Preussischer Kulturbesitz (SPK).After unsuccessfully seeking compensation from Germany, the heirs to the original owners brought common law property claims against Germany and SPK in United States District Court. Generally, the Foreign Sovereign Immunities Act (FSIA) would bar such a suit; Germany argued that the possibly applicable exception for “property taken in violation of international law” did not apply to domestic takings where a government takes the property of its own citizens. The heirs argued Germany’s coerced taking was an act of genocide bringing their suit within the exception since genocide violates international human rights law.The Court relied on the long established history of international law to determine the phrase “property taken in violation of international law,” refers specifically to the law of expropriation, which includes the domestic taking rule. Violations of international human rights law do not fall within the phrase, so Germany retains sovereign immunity under FSIA and the heirs cannot recover in U.S. Courts. Relying on Federal Republic of Germany, the Court issued a per curiam decision in Republic of Hungary, directing the United States Court of Appeals for the D.C. Circuit to decide the case in light of its ruling in Federal Republic of Germany. Featuring: -- Professor Alberto R. Coll, Vincent de Paul Professor of Law and Director of Global Engagement, DePaul College of Law