Supreme Court Hears Holocaust Survivors' Case Against Hungary

The justices are weighing whether U.S. courts can hear claims for compensation tied to property seized by Hungary during the Holocaust under an exception to sovereign immunity laws.

• The case centers on the Foreign Sovereign Immunities Act (FSIA), which generally shields foreign nations from lawsuits in U.S. courts but includes an 'expropriation' exception for property taken in violation of international law.
• Holocaust survivors and their heirs argue that Hungary and its national railway commingled proceeds from seized property into general accounts, some of which they claim are tied to commercial activity in the U.S.
• Several justices expressed skepticism about the survivors' commingling theory, raising concerns about its implications for sovereign immunity and U.S. foreign relations.
• Justice Elena Kagan and others questioned whether Hungary’s interpretation of the FSIA would allow countries to avoid accountability by simply mixing expropriated funds into general treasuries.
• The Biden administration and Hungary have aligned in the case, warning that a ruling for the survivors could open the door to reciprocal lawsuits against the U.S. abroad.

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