David CASSIRER; Ava Cassirer; United Jewish Federation of San Diego County, a California nonprofit corporation, Plaintiffs-Appellants, v. THYSSEN-BORNEMISZA COLLECTION FOUNDATION, Defendant-Appellee.
No. 12-56159
United States Court of Appeals, Ninth Circuit
December 9, 2013
737 F.3d 613
Argued and Submitted Aug. 22, 2013.
The Nelson Court recognized the perils of an overly permissive reading of the
Our case illustrates the expansive sweep of the majority‘s approach. Plaintiff had a train ticket to travel from Austria to the Czech Republic. She was injured due to defendant‘s alleged negligence when she tried to board. The injury and any negligence occurred in Austria. But, because plaintiff happened to buy her ticket online from a vendor in Massachusetts, a federal court in California now asserts powеr to hale the Austrian government before it and make it defend against a claim based on facts that occurred in Austria. This makes as much sense as forcing Mrs. Palsgraf to litigate her case in Vienna.
As the Sosa Court recognized with respect to the
Thaddeus J. Stauber (argued), Sarah E. André, and Michael O. Azat, Nixon Peabody LLP, Los Angeles, CA, for Defendant-Appellee.
Kamala D. Harris, Attorney General of California, Susan Duncan Lee, Acting Solicitоr General, Mark Breckler, Chief Assistant Attorney General, Angela Sierra, Acting Senior Assistant Attorney General, Antonette Benita Cordero and Catherine Z. Ysrael, Deputy Attorneys General, Los Angeles, CA, for Amicus Curiae State of California.
Luis Li, Eric Tuttle, and Amelia L.B. Sargent, Munger Tolles & Olson LLP, Los Angeles, CA, for Amici Curiae California Association of Museums.
Before: HARRY PREGERSON, DOROTHY W. NELSON, and KIM McLANE WARDLAW, Circuit Judges.
OPINION
PREGERSON, Circuit Judge:
The Cassirers appeal the district court‘s grant of the Thyssen-Bornemisza Collection Foundation‘s motion to dismiss their complaint without leave to amend. The Cassirers’ lawsuit seeks to recover a masterpiece French impressionist painting that was allegedly taken from their ancestors by the Nazi regime. For the Cassirers’ claims to be timely, they must rely on amended
STANDARD OF REVIEW
We review the district court‘s grant of the Foundation‘s motion to dismiss de novo. TwoRivers v. Lewis, 174 F.3d 987, 991 (9th Cir.1999). In reviewing the Cassirers’ claims, we treat the allegations in the complaint as true. Id.
FACTUAL AND PROCEDURAL BACKGROUND
Camille Pissarro completed the impressionist painting Rue Saint-Honoré, après-midi, effet de pluie (the “Painting“) in 1897. Julius Cassirer purchased the Painting in 1898. The Cassirers were a well-known Jewish family that played a prominent role in Germany‘s economic and cultural life. When Julius died, his son Fritz, and Fritz‘s wife, Lilly, inherited the Painting.
In 1939, Lilly decided to flee Germany because of the discriminatory Nuremberg Laws enacted in 1935 that stripped Jews of their civil rights and citizenship. Lilly and Fritz had to obtain permission to leave Germany and had to subject any works of art that they wished to take with them to an official appraiser. The appraiser was appointed by the Nazis. He told Lilly that
In 1943, the Painting was sold to an anonymous purchaser. After the war, Lilly attempted to locate the Painting without success. She obtained compensation for the loss of the Painting in the German courts. When Lilly died in 1962, she named her grandson Claude Cassirer as her sole heir.
In 1976, Baron Hans-Heinrich Thyssen-Bornemisza, one of the world‘s most prolific private art collectors, bought the Painting. In 1993, the Thyssen-Bornemisza Collection Foundation (the “Foundation“), an agency of the Kingdom of Spain, purchased the Thyssen-Bornemisza collection, including the Painting. Spain provided a palace to house the Thyssen-Bornemisza Museum.
In 2000, Claude first discovered that the Painting was оn display in the Thyssen-Bornemisza Museum. By that time, he was living in California. Claude filed this lawsuit in May 2005 against the Foundation and the Kingdom of Spain.
Defendants filed an initial motion to dismiss on the ground that the district court lacked subject matter jurisdiction over the dispute. The district court ruled that it had subject matter jurisdiction under the
After the en banc ruling, Claude died. On remand, Claude‘s heirs—his son David, daughter Ava, and the United Jewish Federation of San Diego County—were substituted as plaintiffs (collectively, the “Cassirers“). The Cassirers voluntarily dismissed Spain, and the Foundation agreed not to challenge personal jurisdiction.
The Foundation moved to dismiss the Cassirers’ complaint on the ground that
STATUTORY BACKGROUND
At the time the Cassirers initiated their lawsuit, the
Shortly after the ruling in Von Saher, the California Legislature amended
DISCUSSION
A. Foreign Affairs Preemption Standards
“The Constitution gives the federal government the exclusive authority to administer foreign affairs.” Movsesian v. Victoria Versicherung AG, 670 F.3d 1067, 1071 (9th Cir.2012) (en banc), cert. denied, --- U.S. ----, 133 S.Ct. 2795, 186 L.Ed.2d 860 (2013). Accordingly, “state laws that intrude on this exclusively federal power are preempted” under the foreign affairs doctrine. Id.
Under foreign affairs preemption there are two grounds for preemption: (1) conflict preemption and (2) field preemption. Id. Conflict preemption occurs when a state acts under its traditional power, but the state law conflicts with a federal action such as a treaty, federal statute, or executive branch policy. Id. at 1071-72. The district court held that
Field preemption occurs when a state, “in the absence of any express federal policy ... intrudes on the field of foreign affairs without addressing a traditional state responsibility.” Id. at 1072. The Cassirers argue that the district court erred when it held that
B. Whether Cal.Civ.Proc.Code § 338(c)(3) is Unconstitutional on the Basis of Field Preemption
Field preemption exists “when a state law (1) has no serious claim to be addressing a traditional state responsibility and (2) intrudes on the federal government‘s foreign affairs power.” Id. at 1074.
We need not consider whether
To intrude on the federal government‘s foreign affairs power, a statute must have ” ‘more than some incidental or indirect effect’ on foreign affairs.” Movsesian, 670 F.3d at 1076 (quoting Zschernig v. Miller, 389 U.S. 429, 434, 88 S.Ct. 664, 19 L.Ed.2d 683 (1968)). For example, in Zschernig v. Miller, the Supreme Court
(1) the existence of a reciprocal right of a United States citizen to take property on the same terms as a citizen or inhabitant of the foreign country; (2) the right of United States citizens to receive payment here of funds from estates in the foreign country; and (3) the right of the foreign heirs to receive the proceeds of Oregon estates “without confiscation.”
Id. at 431-32, 88 S.Ct. 664 (quoting
As applied, “Oregon judges in construing [the Oregon probate statute sought] to ascertain whether ‘rights’ protected by foreign law are the same ‘rights’ that citizens of Oregon enjoy.” Id. at 440, 88 S.Ct. 664. In so doing, Oregon courts had repeatedly determined that if “the alleged foreign ‘right’ may be vindicated only through Communist-controlled state agencies, then there is no ‘right’ of the type [the Oregon statute] requires.” Id. Consequently, the Oregon statute “ha[d] a direct impact upon foreign relations.” Id. at 441, 88 S.Ct. 664.
In our other field preemption cases, we found intrusion into foreign affairs on the face of the statutes.
The district court concluded that
First, the district court accurately noted that under Von Saher, Movsesian, and Deutsch, “states may not create their own remedies to the problem of looted Holocaust-era art or other wartime injuries, and they may not require their courts to make politiсally sensitive determinations on matters of foreign policy.”1
Second, the district court incorrectly determined that
And in fact,
We find that the district court erred in concluding that
C. Whether § 338(c)(3) Violates the Foundation‘s Due Process Rights
The Foundation argues that
In Campbell v. Holt, the Supreme Court established that:
It may ... very well be held that in an action to recover real or personal property, where the question is as to the removal of the bar of the statute of limitations by a legislative act passed after the bar has become perfect, that such act deprives the party of his рroperty without due process of law. The reason is that, by the law in existence before the repealing act, the property had become the defendant‘s. Both the legal title and the real ownership had become vested in him, and to give the act the effect of transferring this title to plaintiff would be to deprive him of his property without due process of law.
Campbell v. Holt, 115 U.S. 620, 623, 6 S.Ct. 209, 29 L.Ed. 483 (1885).
But as the district court emphasized, Campbell applies only when the property at issuе had vested and had become the defendant‘s. The Supreme Court explained
The district court found that whether a lapse of time invested the Foundation with title to the Painting required the development of the following factual disputes, not pleaded in the complaint: (1) the history of the Painting‘s transfer; (2) whether the Painting was stolen in the Foundation‘s chain of title; (3) whether the Foundation‘s possession of the Painting was uninterrupted for adverse possession purposes; and (4) whether the Foundation‘s possession of the Painting was open for adverse possession purposes. None of these factual disputes are resolved in the Foundation‘s favor by the facts pleaded in the complaint.
We disagrеe with the Cassirers, however, that the Foundation‘s due process claim may be resolved conclusively in the Cassirers’ favor at this juncture. The Cassirers claim that the constitutional analysis utilized in Campbell and Chase is outdated and that the modern approach is to evaluate whether
D. Whether § 338(c)(3) Violates the Foundation‘s First Amendment Rights
The Foundation argues that
The district court correctly reasoned that
We therefore conclude that the Foundation failed to demonstrate that
CONCLUSION
We AFFIRM in part and REVERSE in part the district court‘s order dismissing the Cassirers’ complaint. We REVERSE the district court‘s finding that
AFFIRMED in part, REVERSED in part, and REMANDED.
