Holocaust survivors and their families were dealt a severe blow by the U.S. Supreme Court this week after it ruled against receiving compensation "from Hungary for property confiscated during World War II."
According to the Associated Press, the long-running lawsuit was thought to have been settled in appellate court, which ruled that the lawsuit to recover the funds could proceed.
The appellate court allowed the lawsuit to proceed even though federal law generally shields other countries from such lawsuits in the U.S. court system.
It found that the survivors and some of their family members suing on their behalf fit an exception to the Foreign Sovereign Immunities Act that covers "property taken in violation of international law."
To qualify for the exception to the federal law that shields sovereign nations from those types of lawsuits in American courtrooms, the plaintiffs have to show that that the property has commercial ties in the United States.
The Associated Press noted:
The survivors had argued that Hungary long ago sold off the property, mixed the proceeds with its general funds, and used that commingled money to issue bonds and buy military equipment in the U.S. in the 2000s.
Notably, Justice Sonia Sotomayor wrote the high court's opinion, stating that "a commingling theory, without more" isn't a strong enough argument to be considered one of the exceptions to the federal law.
After writing its decision, the Supreme Court sent the lawsuit back to the U.S. Court of Appeals for the District of Columbia Circuit.
BREAKING: A 9-0 Supreme Court ruled Hungary CANNOT be held liable for property stolen by the government during the Holocaust because proceeds from it were commingled with other assets.
(Hungary v. Simon, 23-867) #SCOTUS https://t.co/59Cn4bCIxD pic.twitter.com/d0w7zUCl3Y— Katie Buehler (@bykatiebuehler) February 21, 2025
The case had previously made it to the Supreme Court.
The Associated Press noted:
In 2021, the justices sided with Germany in a multimillion-dollar dispute over a collection of religious artworks known as the Guelph Treasure. That decision made it harder for some lawsuits to be tried in U.S. courts over claims that property was taken from Jews during the Nazi era.
At the same time, the justices heard the Hungary case and had returned the case to a lower court.
The case has been at the appeals court three times, and the court has refused to dismiss the claims.
Only time will tell if it makes another trip around the court circuit.
