Supreme Court delivers a significant setback for Holocaust survivors’ case against Hungary

WASHINGTON — In a significant ruling on Friday, the Supreme Court dismissed a long-standing lawsuit aimed at securing compensation for Holocaust survivors and their families from Hungary for the property taken during World War II. This unanimous decision undermines the efforts of plaintiffs, many of whom are over 90 years old and include descendants of those who suffered at Auschwitz.

The Supreme Court’s decision came after they overturned a lower court’s ruling that had permitted the case to advance despite a federal law that generally protects sovereign nations, including Hungary, from being sued in U.S. courts. Hungary challenged the lawsuit, initiated in 2010, arguing for its dismissal based on sovereign immunity.

The plaintiffs had previously relied on an exception within the Foreign Sovereign Immunities Act, which allows lawsuits over property seized in violation of international law, provided they can demonstrate a connection to the United States. The survivors contended that Hungary had sold the confiscated properties long ago, integrated the proceeds into its general funds, and subsequently used these mixed funds to purchase military equipment and issue bonds in the U.S. during the 2000s.

However, Justice Sonia Sotomayor, delivering the court’s opinion, stated that simply asserting a commingling of funds is not adequate to meet the legal requirements established by the statute. As a result, the court remanded the case to the U.S. Court of Appeals for the District of Columbia Circuit, leaving the future of the litigation uncertain.

This case is not the first time it has reached the Supreme Court. In 2021, the justices previously ruled in favor of Germany concerning a valuable collection of religious artifacts known as the Guelph Treasure. That ruling made it increasingly challenging for similar lawsuits to proceed in U.S. courts regarding property claimed by Jewish individuals during the Nazi regime.

Upon returning the Hungary case to the appeals court, the justices took into consideration their earlier ruling about the Guelph Treasure. Despite this, the appeals court opted not to dismiss all the claims, allowing at least some aspects of the lawsuit to persist.

The essence of the lawsuit lies in its aim to hold Hungary and its national railway accountable for their roles during the Holocaust, specifically for the transportation of over 400,000 Hungarian Jews to Auschwitz in a mere two months in 1944. The plaintiffs seek to pursue a class action lawsuit on behalf of all Hungarian Holocaust survivors and the relatives of victims, demonstrating the ongoing struggle for justice and recognition of historical wrongs.