Rosalie Simon v. Republic of Hungary
Opinion
Millett, Circuit Judge:
"Nowhere was the Holocaust executed with such speed and ferocity as it was in Hungary."
Simon v. Republic of Hungary
,
Fourteen of the very few survivors of the Hungarian government's pogrom (collectively, "Survivors"), including four United States citizens, filed suit against the Republic of Hungary and Magyar Államvasutak Zrt. ("MÁV"), Hungary's state-owned railway company. As relevant here, the litigation seeks compensation for the seizure and expropriation of the Survivors' property as part of the Hungarian government's genocidal campaign.
See
Simon
,
In a prior appeal in this case, we held that Hungary's and MÁV's seizure of the Survivors' property was an act of genocide, and that the Survivors had adequately alleged jurisdiction over MÁV's acts of genocidal expropriation in violation of international law.
See
Simon
,
On remand, the district court dismissed the case on two alternative grounds, both of which are at issue here. First, the court held that, regardless of whether the Survivors' claims against Hungary amounted to expropriation, principles of international comity required that the Survivors first try to adjudicate their claims in Hungary. Second, the court held that, under the doctrine of forum non conveniens , a Hungarian forum would be so much more convenient for resolution of the claims as to clearly override the Survivors' choice to litigate the case in the United States.
*1176
The district court erred on both fronts. Our recent decision in
Philipp v. Federal Republic of Germany
,
I
A
The terrible facts giving rise to this litigation are recounted at length in our first opinion in this case.
See
Simon
,
Then, in 1944, the Nazis occupied Hungary and installed a "fanatically anti-Semitic" regime.
Simon
,
B
The United States traditionally afforded foreign sovereign nations immunity from suit in domestic courts as a matter of "grace and comity."
Republic of Austria v. Altmann
,
*1177
Congress responded in 1976 by enacting the Foreign Sovereign Immunities Act ("FSIA"),
The FSIA enumerates specific exceptions to foreign sovereign immunity and confers federal-court jurisdiction over foreign sovereigns in qualifying cases.
This case involves the FSIA's expropriation exception to foreign sovereign immunity. Section 1605(a)(3) waives foreign sovereign immunity in cases asserting that "rights in property [were] taken in violation of international law" if "that property or any property exchanged for such property" either (i) "is present in the United States in connection with a commercial activity carried on in the United States by the foreign state," or (ii) "is owned or operated by an agency or instrumentality of the foreign state and that agency or instrumentality is engaged in a commercial activity in the United States[.]"
Application of that exception hinges on a three-part inquiry:
[1] the claim must be one in which "rights in property" are "in issue";
[2] the property in question must have been "taken in violation of international law"; and
[3] one of two commercial-activity nexuses with the United States must be satisfied.
Simon
,
C
1
The Survivors are four United States citizens-Rosalie Simon, Charlotte Weiss, Rose Miller, and Ella Feuerstein Schlanger-as well as Helen Herman and Helena Weksberg from Canada; Tzvi Zelikovitch, Magda Kopolovich Bar-Or, Zehava Friedman, Yitzhak Pressburger, Alexander Speiser, Ze-ev Tibi Ram, and Moshe Perel from Israel; and Vera Deutsch Danos from Australia. Second Am. Compl. ¶¶ 5-9, 14, 22, 27, 28, 39, 41, 49, 65, 73, 81. 1 Seeking some measure of compensation for their injuries, the Survivors filed suit against the Republic of Hungary, MÁV, and Rail Cargo Hungaria Zrt., a private railway company that is the successor-in-interest to the former cargo division of MÁV.
*1178
Simon v. Republic of Hungary
,
There is no dispute that Hungary and MÁV are, respectively, a foreign sovereign and an instrumentality of a foreign sovereign whose claims of immunity are governed by the FSIA.
See
Simon
,
The United States government said nothing about any United States policy interest that would support dismissal of the claims against the Republic of Hungary or MÁV. See generally United States Statement of Interest.
The district court subsequently dismissed Rail Cargo Hungaria Zrt. as a defendant for lack of personal jurisdiction.
Simon
,
This court reversed. We held that the 1947 Treaty did not preempt the Survivors' suit because there was no express conflict between the Treaty and the Survivors' common-law claims.
Simon
,
This court also ruled that the FSIA's expropriation exception,
Looking to the complaint, this court held that the Survivors had satisfactorily pled a commercial nexus with respect to MÁV because MÁV engaged in commercial activity in the United States by "maintain[ing] an agency for selling tickets, booking reservations, and conducting similar business" here.
Simon
,
2
Upon their return to district court, the Survivors amended their complaint to allege specific facts regarding Hungary's ongoing commercial activity in the United States, including, among other things, "[t]he promotion of Hungarian businesses through trading houses," the promotion of Hungary as a destination for United States tourists, "[t]he promotion of American investment in Hungarian business[,]" "[t]he acquisition by Hungary of military equipment," Hungary's use of the United States' capital and debt markets to secure financing, and Hungary's acceptance of federal grants and loans from the United States. Second Am. Compl. ¶ 101.
The district court again dismissed the case. The court chose not to address whether the Survivors had adequately pled facts supporting application of the FSIA's expropriation exception. Instead, the district court held that, notwithstanding the jurisdiction expressly granted by the FSIA over properly pled expropriation claims, "principles of international comity" required the Survivors "to exhaust [Hungarian] remedies, except where those remedies are futile or imaginary."
Simon v. Republic of Hungary
,
The district court further decided that dismissal was warranted under the doctrine of
forum non conveniens
. The court reasoned that the Survivors' choice of forum merited "minimal" deference, and that Hungary would be more convenient because of the evidence and many witnesses located there.
Simon
,
The Survivors appeal both grounds for dismissal and request that the case be reassigned to a new district court judge.
*1180 We agree that the district court erred in requiring the exhaustion of Hungarian remedies and in its forum non conveniens analysis, but see no basis for assigning a new district court judge to hear the case.
II
Because this appeal arises from a dismissal at the threshold of the case, "we must accept as true all material allegations of the complaint, drawing all reasonable inferences from those allegations in plaintiffs' favor."
Philipp
,
III
A
Hungary and MÁV (collectively, "Hungary") argue first that, even if the FSIA provides jurisdiction, the Survivors were required as a matter of international comity to first "exhaust" or "prudential[ly] exhaust[ ]" their claims in the Hungarian courts. Hungary Br. 34. According to Hungary, FSIA jurisdiction would attach, if at all, only if Hungary closed its doors to their claims or the Survivors "show[ed] that exhaustion would be futile." Id . at 28.
Before addressing that argument, some clarification of language is in order. Exhaustion involves pressing claims through a decisional forum-often an administrative agency or specialized body-whose decision is then subject to the review of a federal court.
See
Woodford v. Ngo
,
The doctrine that Hungary invokes omits a crucial element of traditional "exhaustion"-the Survivors' right to subsequent judicial review here of the Hungarian forum's decision. Indeed, while we need not definitively resolve the question, there is a substantial risk that the Survivors' exhaustion of any Hungarian remedy could preclude them by operation of
res judicata
from ever bringing their claims in the United States.
See
Professor William S. Dodge Amicus Br. 15;
de Csepel v. Republic of Hungary
,
So understood, enforcing what Hungary calls "prudential exhaustion" would in actuality amount to a judicial grant of immunity from jurisdiction in United States courts. But the FSIA admits of no such bar. As this court recently held in
Philipp v. Federal Republic of Germany
,
supra
, nothing in the FSIA or federal law empowers the courts to grant a foreign sovereign an immunity from suit that Congress, in the FSIA, has withheld.
Turning then to statutory text, Hungary's exhaustion-cum-immunity argument has no anchor in the FSIA. In fact, as
Philipp
explains, the text points against it. When Congress wanted to require the pursuit of foreign remedies as a predicate to FSIA jurisdiction, it said so explicitly.
Philipp
,
Nor is Hungary's form of judicially granted immunity among those historical legal doctrines, like
forum non conveniens
, that Congress chose to preserve when it enacted the FSIA.
Philipp
,
In short, controlling circuit and Supreme Court precedent give no quarter to Hungary's theory of judicial immunity wrapped in exhaustion clothing. Under the FSIA, courts are duty-bound to enforce the standards outlined in the statute's text, and when jurisdiction exists (as it does at least over MÁV), courts "have the power, and ordinarily the obligation, to decide cases and controversies properly presented to them."
W.S. Kirkpatrick & Co. v. Environmental Tectonics Corp., Int'l
,
B
Unlike Hungary's prudential immunity/exhaustion theory, the ancient doctrine of
forum non conveniens
is not displaced by the FSIA.
See
*1182
Verlinden B.V. v. Central Bank of Nigeria
,
The
forum non conveniens
doctrine comes with ground rules. The starting point is "a strong presumption in favor" of the plaintiff's choice of the forum in which to press her suit.
Piper
,
Because Hungary seeks to strip the Survivors of their chosen forum and to force them to sue on Hungary's home turf, Hungary bears the burden of showing both that an "adequate alternative forum for the dispute" exists,
Chabad
,
In deciding whether to deny a plaintiff her chosen forum, courts weigh a number of private and public interests.
Piper
,
The district court committed a number of legal errors that so materially distorted its analysis as to amount to a clear abuse of discretion.
See
El-Fadl v. Central Bank of Jordan
,
*1183 1
The district court committed legal error at the first step by affording the Survivors' choice of forum only "minimal deference."
Simon
,
The district court set the scales wrong from the outset. It held that only "minimal deference" was due in this case because, although four of the plaintiffs were United States citizens, the other plaintiffs-from Canada (2), Israel (7), and Australia (1)-"will be required to travel internationally regardless of whether the litigation is in the United States or Hungary."
Simon
,
First, the addition of foreign plaintiffs does not render for naught the weighty interest of Americans seeking justice in their own courts. Here, nearly a third of the plaintiffs are from the United States. And there is no claim or evidence that the United States plaintiffs are in the case only as jurisdictional makeweights seeking to manipulate the forum choice. Under these circumstances, the United States' plaintiffs' preference for their home forum continues to carry important weight in the forum non conveniens analysis.
Second, the fact that other plaintiffs must travel does nothing to show that it is more convenient for
all
plaintiffs to travel to Hungary rather than for
some
to travel to the United States. The presence of foreign plaintiffs certainly does not justify the preference for a forum-Hungary-in which
no
plaintiff resides. The question, after all, centers on convenience, and forcing every single one of the many elderly plaintiffs to travel internationally is in no way convenient.
See
Piper
,
Hungary bears the heavy burden of persuasion here. Yet it made no effort to show how-as a matter of geographic proximity, available transportation options, cost of travel, ease of travel access, or any other relevant consideration-the United States is a less convenient forum than Hungary for the United States and Canadian plaintiffs, or even for the Israeli and Australian plaintiffs, to access and conduct their litigation. To be sure, Hungary need not have engaged in "extensive investigation" to demonstrate that it is the more convenient forum.
Piper
,
Third, it is indisputably inconvenient to further delay the elderly Survivors'
*1184
almost decade-long pursuit of justice.
See
Schubarth v. Federal Republic of Germany
,
In supplemental briefing before this court, Hungary raises, for the first time in this litigation, an argument that the Survivors seek to represent a class with more Hungarian members than American members. That is too little too late. For starters, that factual argument is forfeited because it has been fully available to Hungary from the onset of this litigation, yet it was not presented to the district court.
See
Potter v. District of Columbia
,
In any event, the argument does not hold water. No class has been certified in this case. Hungary's argument rests instead on information derived from a different case in the Southern District of Florida, see Settlement Agreement, Rosner v. United States , No. 01-01859 (S.D. Fla. April 29, 2005), ECF No. 209. Yet Hungary offers no evidence that the two groups of plaintiffs would be the same or would have significant overlap. Unadorned and tardy speculation carries no weight in the forum non conveniens calculus.
In sum, the misplacement of the burden of proof and the resulting material gaps in the district court's legal analysis of Hungary's arguments in favor of a Hungarian forum pull the legs out from under much of the district court's forum non conveniens analysis.
2
The district court misallocated the burden of proof in a second consequential respect. The court tasked the Survivors with proving that Hungary was not a proper forum. Specifically, the district court ruled that its prior finding, for purposes of "prudential exhaustion," that the Survivors' "pursuit of their claims in Hungary would not be futile" equally "satisfie[d]" the requirement "that Hungary [be] both an available and adequate alternative forum."
Simon
,
That chain of reasoning does not carry over to the
forum non conveniens
doctrine, where the job of proving the availability and adequacy of a Hungarian forum
*1185
was Hungary's, not the Survivors'.
See
Chabad
,
Hungary dismisses the court's error as an "innocuous" statement, Hungary Br. 15, pointing to the court's later reference to the correct standard in a parenthetical,
The proof is in the pudding. Under its inverted analysis, the district court never analyzed the critical question of the availability and adequacy of the Hungarian forum. Bypassing that question was anything but harmless in this case, where even the United States government lacks "a working understanding of the mechanisms that have been or continue to be available in Hungary with respect to such claims." Brief for Amicus Curiae the United States at 11. It is hard to understand how a foreign forum can be so clearly more convenient when the United States government itself does not have a clear understanding of its nature or operation. 3
In other words, the district court let Hungary off the burden-of-proof hook by transforming the Survivors' failure to prove futility in the "prudential exhaustion" inquiry into proof of Hungary's clear superiority as a forum in the
forum non conveniens
analysis. On this record, that was a consequential legal error.
See
El-Fadl
,
3
The consequences of the district court's burden-allocation errors snowballed as the court balanced the competing private and public interests in the two fora. The ultimate inquiry, again, puts the onus on Hungary. The law's "strong presumption in favor of the plaintiff's choice of forum,"
Piper
,
*1186 a
As relevant here, the private-interest factors include the "relative ease of access to sources of proof; availability of compulsory process for attendance of unwilling [witnesses;] * * * and all other practical problems that make trial of a case easy, expeditious, and inexpensive."
Piper
,
In weighing the private-interest factors, the district court reasoned that (i) extensive records are located in Hungary that would require translation into English, (ii) "many witnesses with personal knowledge will be located in Hungary" and unable to travel, and (iii) the Survivors might later choose to bring an action against Rail Cargo Hungaria Zrt., a previously dismissed defendant.
Simon
,
At best, the location-of-relevant-evidence factor is in equipoise. While there are some records in Hungary, the Survivors showed that an extensive collection of relevant records has been amassed by the United States Holocaust Memorial Museum in Washington, D.C. See Memorandum in Opposition to Hungary's Motion to Dismiss 21, Simon v. Republic of Hungary , No. 10-1770 (D.D.C. Oct. 31, 2016), ECF No. 122. 4
The issue of translation points both ways as well. Given that many of the Survivors speak English, the documents will in all likelihood have to be translated and "digitized" for the parties regardless of which forum hears the case.
See
Philipp v. Federal Republic of Germany
,
The district court placed heavy emphasis on the presence of "many witnesses" in Hungary who cannot or were unwilling to travel.
Simon
,
The district court also emphasized that the Survivors might wish to join Rail Cargo Hungaria Zrt. as a defendant. But the ability to implead third-party defendants becomes relevant when the missing defendant is "crucial to the presentation of [the appellee's] defense."
Piper
,
b
As relevant to this case, the public-interest factors include:
[T]he administrative difficulties flowing from court congestion; the "local interest in having localized controversies decided at home"; the interest in having the trial of a diversity case in a forum that is at home with the law that must govern the action; [and] the avoidance of unnecessary problems in conflict of laws, or in the application of foreign law[.]
Piper
,
First, the district court erred in assigning such significant weight to Hungary's asserted interest in addressing the Survivors' claims.
See
Simon
,
Beyond that, the district court erred in putting Hungary's and the four American citizens' and other Survivors' interests at cross-purposes. Allowing these claims to go forward and the evidence to be shown in a United States court will in no way impair Hungary's ability to use that same evidence to provide reparations and remediation to the Survivors of its own accord.
*1188
The district court relied on
Republic of the Philippines v. Pimentel
,
The Supreme Court held that, when considering the intersection of joinder rules and sovereign immunity, "[a] case may not proceed when a required-entity sovereign is not amenable to suit."
That bears no resemblance to this case. This case does not involve necessary-party status under Rule 19 ; Hungary and MÁV are already parties; and the FSIA's expropriation exception grants jurisdiction over at least one (and perhaps both) of the Hungarian defendants.
See
Simon
,
Hungary additionally argues that other cases have acknowledged a foreign sovereign's interest in resolving disputes internally. But the cases that Hungary cites involved questions of personal jurisdiction and the extraterritorial application of the Alien Tort Statute,
The district court's second legal error was brushing off the United States' own interests in the litigation. The district court concluded that the Survivors' claims have no connection to the United States.
Simon
,
Beyond that, the United States government has announced that it has a "moral
*1189
imperative * * * to provide some measure of justice to the victims of the Holocaust, and to do so in their remaining lifetimes." United States Br. at 9-10. That interest is part of a larger United States policy to support compensation for Holocaust victims, especially its own citizens. "The policy of the United States Government with regard to claims for restitution or compensation by Holocaust survivors and other victims of the Nazi era has consistently been motivated by the twin concerns of justice and urgency." United States Statement of Interest at 2. For the four citizen plaintiffs in this case, that interest is so compelling that Congress enacted it into law.
See
Justice for Uncompensated Survivors Today Act of 2017, Pub. L. No. 115-171,
The United States has also been actively involved in obtaining justice for Nazi-era victims with countries that have shown themselves willing to provide such redress. See United States Statement of Interest at 2, 4-5 (The United States has "assist[ed] in several international settlements which have provided approximately $8 billion dollars for the benefit of victims of the Holocaust"; signed Executive Agreements with countries that had collaborated with the Nazis; and "committed to take certain steps to assist Austria and Austrian companies in achieving 'legal peace' in the United States with respect to Nazi-era forced and slave labor claims[.]"). The United States' strong and longstanding interest in ensuring the timely remediation of the claims of Holocaust survivors, especially for its own citizens, carries important weight in the forum non conveniens analysis.
Third, Hungary failed to show that the choice-of-law factor favors its forum. The district court reasoned that "Hungarian law would likely apply to the plaintiffs' claims," making a Hungarian forum a better fit.
Simon
,
Hungary argues that historical Hungarian law from the time the property was seized should govern the claims. Oral Argument Tr. 21:22-21:23. That cannot be right. Hungarian law at that time made the genocidal seizures lawful and deprived Jews of all legal rights and status. See id. 22:6-22:9. That is the same law that authorized the deportation of Hungarian Jews to death camps. Consigning the Survivors to that legal regime would be the plainest of errors.
Finally, the United States has advised this court that it has no specific foreign policy or international comity concerns that warrant dismissal of this case in favor of a Hungarian (or any other) forum. United States Br. at 11 ("[T]he United States does not express a view as to whether it would be in the foreign policy interests of the United States for plaintiffs to have sought or now seek compensation in Hungary."). Quite the opposite, the United States' brief here emphasized its governmental interest in the timely resolution of the Survivors' claims during their lifetimes.
Id
. at 9-11. Likewise, its statement of interest filed in the district court gave no reason why this case should be dismissed and sent to Hungary.
See generally
United States Statement of Interest. That silence speaks volumes when contrasted
*1190
with the federal government's first unprompted Statement of Interest in this case in which it strongly recommended that the third defendant, a privately owned Austrian company, be dismissed because of Austria's ongoing, collaborative efforts to provide reparations to victims of the Holocaust.
See
id
. at 1. That defendant has since been dismissed from the case.
Simon
,
At bottom, the relevant private and public interests in this case, strengthened by the United States government's views, point strongly in favor of the Survivors' forum choice. They certainly do not tilt decisively in favor of the Hungarian forum. While we accord respectful deference to district courts' forum non conveniens determinations, we do not rubber stamp them. Our task is to ensure that district courts' decisions hew to the burdens of proof and enforce the applicable legal presumptions. In this case and on this record, the nature and importance of the district court's legal and analytical errors render its judgment that Hungary met its weighty burden of proof a clear abuse of discretion.
C
Lastly, the Survivors request that their case be assigned to a different district court judge. "[W]e will reassign a case only in the exceedingly rare circumstance that a district judge's conduct is 'so extreme as to display clear inability to render fair judgment.' "
In re Kellogg Brown & Root, Inc.
,
* * * * *
Winston Churchill described the brutal genocidal expropriations, deportations, and mass extermination of Hungarian Jews at Nazi death camps as " 'probably the greatest and most horrible crime ever committed in the history of the world.' "
Simon
,
So ordered.
The district court concluded that this foreign-cubed case-involving wrongs committed by Hungarians against Hungarians in Hungary-should be litigated in Hungary. In so doing, the court permissibly applied the settled law of forum non conveniens .
Our standard of review is narrow. As the Supreme Court has instructed: "The
forum non conveniens
determination is committed to the sound discretion of the trial court. It may be reversed only when there has been a clear abuse of discretion; where the court has considered all relevant public and private interest factors, and where its balancing of these factors is reasonable, its decision deserves substantial deference."
Piper Aircraft Co. v. Reyno
,
*1191 Under this narrow standard, reversal here is unwarranted.
The district court correctly stated the relevant legal principles. First, it acknowledged "the 'substantial presumption in favor of a plaintiff's choice of forum.' "
Simon v. Republic of Hungary
(
Simon III
),
My colleagues conclude that the district court gave insufficient weight to the plaintiffs' choice of forum, relieved the defendants of their burden of proof, and unreasonably balanced the relevant factors. Respectfully, I disagree.
A
The district court permissibly assessed the weight owed to the plaintiffs' choice of a United States forum. At the outset, the court repeatedly recognized the "substantial presumption" or "substantial deference" generally due to such a choice.
This analysis is consistent with governing law. As the Supreme Court has explained: "When the home forum has been chosen, it is reasonable to assume that this choice is convenient," but "[w]hen the plaintiff is foreign, ... this assumption is much less reasonable."
Piper Aircraft
,
My colleagues highlight the district court's single usage of the phrase "minimal deference," which they read as a threshold legal error of "set[ting] the scales wrong from the outset."
Ante
at 1179, 1183. What the court actually said,
after
flagging the various considerations noted above, was that "[i]n these circumstances, the plaintiffs' choice of forum is entitled to minimal deference."
*1192
My colleagues object that Hungary made no detailed presentation regarding the plaintiffs' travel options.
Ante
at 1183. But the Supreme Court has warned that "[r]equiring extensive investigation would defeat the purpose" of the
forum non conveniens
motion.
Piper Aircraft
,
My colleagues also fault the district court for failing to consider whether any litigation delays in Hungary might prevent the plaintiffs from later re-filing in the United States.
Ante
at 1184. But the plaintiffs did not raise this argument either below or in their opening brief, so it is twice forfeited.
See
,
e.g.
,
Am. Wildlands v. Kempthorne
,
B
My colleagues next contend that the district court improperly required the plaintiffs to prove that Hungary was not an available and adequate forum for their claims, rather than requiring the defendants to prove that it was.
Ante
at 1184. But, in laying out the "applicable legal principles" of
forum non conveniens
, the district court explicitly stated that dismissal is appropriate only if "the defendant shows" that "there is an alternative forum that is both available and adequate."
My colleagues note that the district court, in addressing whether Hungary was an adequate alternative forum, rested on its conclusion that pursuing claims in Hungary would not be futile for purposes of exhaustion. In the court's own words, "the finding that the plaintiffs' pursuit of their claims in Hungary would not be futile satisfies the first prong of the test for application of the
forum non conveniens
doctrine that Hungary is both an available and adequate alternative forum."
The district court's statement made good sense in the context of its overall analysis. After all, in setting forth the governing principles on futility, the district court exclusively invoked the adequacy standards of
forum non conveniens
law.
See
The court's analysis makes all of this clear. Among other things, the court explained that the Hungarian constitution "requires that parties be treated fairly and
*1193
equally in court, prohibits discrimination on the basis of, among other things, race or religion, and creates rights of appeal to various appellate courts."
My colleagues note that the United States declined to take a position on the availability and adequacy of a Hungarian forum. Ante at 1185. But the government's failure to address that question hardly suggests that the district court, in assessing the detailed submissions made to it on that very point, committed legal error or otherwise abused its discretion.
C
The district court reasonably balanced the private and public interests involved. On these points, my colleagues do not argue that the district court committed any discrete legal error, but only that the court abused its discretion in weighing the relevant factors.
1
With regard to private interests, the district court reasonably concluded that much of the evidence in this case will involve paper records written in Hungarian and located in Hungary. The court cited declarations noting "the extensive documents in the Hungarian Archives related to property taken from Hungarian nationals during World War II."
My colleagues conclude that, "[a]t best, the location-of-relevant-evidence factor is in equipoise," because "some" records are in Hungary, while an "extensive" collection is at the Holocaust Museum in Washington.
Ante
at 1186. But the defendants' evidence showed that the Hungarian National Archives "have a substantial amount of documentation" regarding the Hungarian Holocaust, J.A. 184, and the plaintiffs' own legal expert confirmed "an abundance of records of these confiscations in Hungarian archives," J.A. 244. Moreover, while the plaintiffs' expert noted that "[c]opies" of the documents "may be found" at the Holocaust Museum, he did not assert that the museum had somehow managed to compile records as complete or more complete than those of the Hungarian government. J.A. 244-45. Furthermore, the plaintiffs themselves have found no records relevant to their individual cases in the museum, so there is no case-specific reason to discount the defendants' overall submissions on this point.
See
Simon v. Republic of Hungary
, No. 10-cv-1770 (D.D.C.), ECF Doc. 122 at 21 n.12. Finally, the examples addressed by the plaintiffs' expert confirm that the pertinent original records are in paper form and written in Hungarian.
See
*1194
The court also reasonably found that there would be "many witnesses" in Hungary who could not or would not travel to the United States.
The district court also reasonably considered the appropriateness of a Hungarian forum in the event of further litigation against Rail Cargo Hungaria Zrt. The plaintiffs had sued RCH in this case, but RCH was dismissed for lack of personal jurisdiction in the United States.
See
Finally, the district court noted one important competing consideration-the "emotional burden" to the plaintiffs of returning to Hungary.
2
With regard to public interests, the district court reasonably concluded that Hungary's interest in resolving this controversy was greater than that of the United States. The Supreme Court has long recognized the "local interest in having localized controversies decided at home."
Gulf Oil Corp. v. Gilbert
,
My colleagues object that neither Pimentel nor the extraterritoriality and personal-jurisdiction decisions stressing the importance of "a foreign sovereign's interest in resolving disputes internally" were forum non conveniens cases. Ante at 1188. But the repeated acknowledgment of this interest-in many different contexts-only reinforces the district court's conclusion. In any event, Gulf Oil and its forum non conveniens progeny, such as Piper Aircraft and MBI , amply support the district court's judgment.
My colleagues counter that the United States has recognized a "moral imperative" to provide compensation to Holocaust victims.
*1195 Ante at 1188-89. True enough, but the government seeks to further that interest by encouraging parties "to resolve matters of Holocaust-era restitution and compensation through dialogue, negotiation, and cooperation," not by sweeping foreign-centered cases into United States courts. U.S. Br. at 10. Moreover, consistent with Gulf Oil and its progeny, the United States reminds us that "a court should give less weight to U.S. interests where the activity at issue occurred in a foreign country and involved harms to foreign nationals." Id. at 16. Likewise, it reminds us that "[a]pplication of the forum non conveniens doctrine can assist in identifying cases in which an alternative foreign forum has a closer connection to the underlying parties and/or dispute." Id. at 26. These considerations strongly support the district court's assessment of the public-interest factors.
Finally, the district court reasonably concluded that choice-of-law considerations favor a Hungarian forum. Of course, Hungarian law is the obvious source of law to govern acts committed by Hungarians against Hungarians in Hungary. My colleagues express concern that Hungarian law may have affirmatively authorized the discrimination and genocide committed during the Holocaust.
Ante
at 1189. But Hungarian law now outlaws both,
* * * *
The district court correctly stated the governing law and reasonably weighed the competing considerations in this case. Because the court did not abuse its discretion by dismissing on forum non conveniens grounds, I would affirm its decision.
Plaintiff Tzvi Zelikovitch passed away while the case was pending, but his three children, who are all Israeli citizens, "have succeeded to his rights, interests and entitlements." Second Am. Compl. at 3 n.1.
The Survivors also seek to certify a class composed of Holocaust survivors similarly wronged by the Hungarian government. The district court has not yet addressed the request for class certification. See Order, Simon v. Republic of Hungary , No. 10-1770 (D.D.C. Nov. 15, 2010), ECF No. 9.
To be fair to the district court, it did not have the benefit of this brief from the United States at the time of its decision.
The Dissenting Opinion faults the Survivors for not having yet-at this pre-discovery stage-locked down the specific location of documents regarding their "individual cases" of seizure and expropriation. Dissenting Op. at 1193-94. But the Dissenting Opinion offers no justification for visiting upon the Survivors the very duty of "extensive investigation" that it rejects for Hungary at this procedural stage. Compare Dissenting Op. at 1193-94, with Dissenting Op. at 1191-92.
Reference
- Full Case Name
- Rosalie SIMON, Et Al., Appellants v. REPUBLIC OF HUNGARY and Magyar Allamvasutak Zrt., Appellees
- Cited By
- 21 cases
- Status
- Published