Hungarian Government Faces Legal Scrutiny from Holocaust Survivors in U.S. Supreme Court
The Supreme Court of the United States is currently evaluating the potential global impact of a lawsuit filed by Holocaust survivors and their heirs against the Hungarian government. The case, ongoing for nearly 14 years, revolves around the 'comingling theory' and its implications on foreign sovereign immunity.
At the core of the dispute is the contention that the Hungarian government, under Nazi occupation, liquidated accounts, funds, and other assets belonging to Jews. Some of these assets now exist as bonds and interest payments in the United States.
Shay Dvoretzky, an attorney for the plaintiffs, argues that the comingling theory has 'significant guardrails' to protect the United States from foreign overreach. However, Supreme Court justices seem somewhat skeptical of Dvoretzky's argument.
Justice Brett Kavanaugh highlighted the uniqueness of the expropriation exception in the United States, while Justice Elena Kagan suggested that limiting the expropriation exemption could risk defying Congress's will. Supreme Court Chief Justice John Roberts expressed concern about the potential implications of the comingling theory, stating, 'Once you say comingling counts, well, then everything's pretty much fair game.'
Joshua Glasgow, an attorney representing Hungary, asked the court to reject the comingling theory. The federal Department of Justice and the government of Germany have supported the Hungarian government's position in the case.
The plaintiffs argue that they are eligible to pursue their claims under an exception relating to the 'expropriation' of property. They compare their argument to a hypothetical example of a European country adjudicating claims involving the involuntary internment of Japanese-Americans during World War II, suggesting that the American government could be held liable for billions of dollars in losses.
The Hungarian government argues that it is a foreign sovereign and cannot be held liable in another country's court. However, there is no specific information in the search results about which parties have taken a position at the Federal Court of Justice (Bundesgerichtshof) regarding the Holocaust survivors' and their heirs' proceedings against the Hungarian government, including support from the German Federal Ministry of Justice and the German government.
Justice Kavanaugh also emphasized the potential friction with other countries if the expropriation and comingling theory is read too expansively. Justice Kagan questioned the potential for other countries to use the strategy of selling property to insulate themselves from claims for all time.
The Supreme Court is considering whether the lawsuit can move forward under the comingling theory. The outcome of this case could have significant implications for the future of foreign sovereign immunity and the ability of Holocaust survivors and their heirs to seek justice for the assets wrongfully seized during the Holocaust.
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