ASHINGTON,
June 7 - The Supreme Court ruled Monday that the 88-year-old niece and heir
of an Austrian Jewish art collector can pursue her lawsuit against the
Austrian government and its national art gallery for the return of six
paintings by Gustav Klimt that belonged to her family before the Nazi
takeover.
The court did not rule on the merits of the lawsuit, filed in federal
court in California by the woman, Maria V. Altmann, and Justice John Paul
Stevens indicated in his majority opinion that important defenses remain
available to Austria as the case proceeds to the next phase.
While Austria has returned $1 million worth of art to the family of the
collector, Ferdinand Bloch-Bauer, including drawings by Klimt, it maintains
that the Bloch-Bauers intended to bequeath the six disputed paintings, now
worth over $100 million, to the state museum. Therefore, Austria argues, the
paintings are its legitimate property today despite having been
illegitimately expropriated by the Nazis after the family fled Vienna in
1938.
The issue for the Supreme Court was jurisdictional: whether the Foreign
Sovereign Immunities Act, a law passed in 1976 to open the federal courts to
specific categories of cases against foreign governments, applies to conduct
that predated the law's enactment. By a vote of 6 to 3, the court's answer
was yes. The decision affirmed a 2002 ruling by the federal appeals court in
San Francisco, although in reaching that outcome, the Supreme Court applied
a different legal analysis.
In affirming the retroactive applicability of the 1976 law, the decision
may open the door to additional World War II-era lawsuits, but the category
of cases the decision will actually assist is likely to be small. Claims
against Germany and Japan, for example, were addressed by the treaties that
ended the war and in the view of many legal experts cannot be pursued in
private lawsuits.
The case the court decided Monday has attained high visibility as one of
a handful concerning art looted by the Nazis that has made progress through
the courts. Tens of thousands of important works stolen from Jews throughout
Europe are still missing, and resolution of the claims has been slow for a
variety of reasons.
The connection between the Bloch-Bauer family and the art at issue in
this case is stunningly apparent: two of the paintings are portraits of
Adele Bloch-Bauer, Ferdinand's wife and Ms. Altmann's aunt. Mrs. Bloch-Bauer
died in 1925, leaving a will in which she asked her husband at his own death
to leave the paintings to the Austrian Gallery.
However, the works belonged not to her but to her husband. By the time he
fled Vienna in 1938, he had made no legal arrangements to donate the
paintings to the government or its museum. When he died in Switzerland in
1945, the paintings remained in his estate although they were no longer in
his hands. Ms. Altmann, who also escaped Austria and has lived in California
since 1942, is his only surviving heir.
After the war, the family made several efforts to retrieve the paintings.
The current effort began in 1998, after a newspaper report based on the
museum's records indicated that the Austrian government was aware that the
Bloch-Bauers had not donated the paintings. Ms. Altmann turned to the
federal courts when she learned that under Austrian court rules, she would
have to pay $350,000 in court costs in order to bring her lawsuit there.
Retroactivity has been a vexing issue for the Supreme Court, which has
developed a set of criteria for deciding when it is reasonable to apply a
new law to past conduct. In opposing the lawsuit, Austria argued that the
Foreign Sovereign Immunities Act could not provide jurisdiction and,
further, that if the law did apply in a general sense, the specific section
that Ms. Altmann invoked did not apply to her case.
The lower federal courts found in Ms. Altmann's favor, both on the
retroactivity question and on the specific issue of the applicability of a
section that permits suits for expropriation of property in violation of
international law. In accepting the appeal, Republic of Austria v. Altmann,
No. 03-13, the Supreme Court agreed to decide only the retroactivity issue.
It let stand the ruling on the specific section, meaning that the lawsuit
can now go forward in Federal District Court in Los Angeles.
In his majority opinion, Justice Stevens cautioned that the ruling was
narrow and that Austria could still defend itself on various diplomatic
grounds. The United States government opposed the lawsuit, following a
longstanding policy of preferring to keep such issues in the realm of
diplomacy rather than federal court. Justice Stevens said that as the case
proceeds, the government's views on the particular issues were entitled to
deference.
The majority said that applying the law retroactively was "most
consistent with two of the act's principal purposes," namely clarity, in
handling claims of foreign immunity and "eliminating political participation
in the resolution of such claims." Congress passed the law in part to
relieve the executive branch of having to take a position in politically
sensitive cases, Justice Stevens noted.
Justices Sandra Day O'Connor, Antonin Scalia, David H. Souter, Ruth Bader
Ginsburg and Stephen G. Breyer joined the opinion. Justice Anthony M.
Kennedy dissented in an opinion that Chief Justice William H. Rehnquist and
Justice Clarence Thomas also signed. He said the decision would "weaken the
reasoning and diminish the force of the rule against the retroactivity of
statutes, a rule of fairness based on respect for expectations."
In a separate development on Monday, the court removed a legal obstacle
for the Bush administration to put into effect a long-delayed policy of
letting Mexican long-haul trucks serve United States markets.
For more than 20 years, Mexican trucks have been limited to a
20-mile-wide zone along the border under a policy that in Mexico's view
violated the North American Free Trade Agreement. An international
arbitration panel agreed with Mexico in 2001, but the new policy has been
dogged by environmental concerns. The United States Court of Appeals for the
Ninth Circuit ruled last year that the Federal Motor Carrier Safety
Administration, the agency within the Department of Transportation charged
with issuing rules for the new policy, had not adequately assessed the
impact on air quality of permitting Mexican long-haul trucks both to idle at
the border while being inspected and to drive the interstate highway system
while serving their new markets.
The Supreme Court unanimously overturned that decision on Monday in an
opinion by Justice Thomas. He said that because the agency had no
policy-making role, but only the limited task of proposing regulations, it
was not legally obliged to conduct a full environmental review.
The administration said it would immediately begin to process
applications from Mexican truck companies. The outcome may not be popular in
the border states that are still trying to meet targets under the Clean Air
Act. California and eight other states filed a brief opposing the new
policy, which Attorney General Bill Lockyer of California described Monday
as an "environmental blow."