Foreign governments' property seizures
Federal Republic of Germany v. Philipp
In brief
The Court said the FSIA exception uses the international law of expropriation and the domestic takings rule; it wiped out the lower-court ruling (vacated) and sent the case back to the lower court (remanded), without finally resolving the heirs’ claims.
- Where it stands
- Decided
Decided 9-0 · February 3, 2021 · Opinion by Chief Justice Roberts
- What it’s about
- The Supreme Court ruled that the Foreign Sovereign Immunities Act’s exception allowing U.S. courts to hear claims about property taken in violation of international law does not apply to Germany’s alleged taking of its own citizens’ property within Germany.
- Who it affects
- The Court decided that the Foreign Sovereign Immunities Act (FSIA) provision for some property-taking claims—the expropriation exception—follows the international law of expropriation (rules governing government property takings) and the domestic takings rule.
Summary: written with AI from the case record.
What it's about
It wiped out the appeals court’s judgment and sent the case back for further proceedings (vacated and remanded), rather than ending the entire lawsuit.
Federal Republic of Germany v. Philipp shows how U.S. courts handle lawsuits against foreign governments over alleged Nazi-era property takings.
Question presented
1. Whether the "expropriation exception" of the Foreign Sovereign Immunities Act, 28 U.S.C. § 1605(a)(3), which abrogates foreign sovereign immunity when "rights in property taken in violation of international law are in issue," provides jurisdiction over claims that a foreign sovereign has violated international human-rights law when taking property from its own national within its own borders, even though such claims do not implicate the established international law governing states' responsibility for takings of property. 2. Whether the doctrine of international comity is unavailable in cases against foreign sovereigns, even in cases of considerable historical and political significance to the foreign sovereign, and even where the foreign nation has a domestic framework for addressing the claims.
What the Court decided
Holding
The phrase “rights in property taken in violation of international law,” as used in the FSIA’s expropriation exception, refers to violations of the international law of expropriation and thereby incorporates the domestic takings rule. 406, vacated and remanded.
- Result
- Vacated
The vote
What's next
The case returns to the D.C. Circuit for further proceedings under the Supreme Court’s interpretation. The heirs’ final claims remain unresolved.
Why it matters
That rule generally treats a government’s taking of its own nationals’ property within its borders as a domestic matter, and the case’s final outcome remains unresolved.
Documents
Docket activity
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More questions
- What did Germany v. Philipp involve?
- Heirs of German Jewish art dealers said Nazi officials forced the Welfenschatz’s sale to Prussia for a fraction of its value. They sued Germany and its state museum entity in U.S. courts under the Foreign Sovereign Immunities Act.
- How did the Supreme Court interpret the FSIA expropriation exception in Germany v. Philipp?
- It decided that the exception follows international law governing property takings and includes the domestic takings rule. That rule generally treats a country’s taking of its own nationals’ property within its borders as a domestic matter.
- Did the Supreme Court decide whether the heirs won in Germany v. Philipp?
- No. The Court wiped out the lower-court ruling (vacated) and sent the case back (remanded), so the heirs’ claims were not finally decided here.
- Was the international-comity question resolved in Germany v. Philipp?
- The Court sent the case back without a separate final result on international comity, the practice of respecting another country’s courts and laws. That issue remains unresolved.
Sources
Primary materials plus reporting. Best-effort analysis: this explainer relies on a mix of primary materials and trusted secondary sources. Official filings and opinions remain authoritative.