War Crimes
Author | International Law Group |
Several Holocaust victims and their heirs filed a U.S. lawsuit in 1998 -- 1999 against German and Austrian banks seeking compensation. The plaintiffs settled with the Austrian defendants.
The plaintiffs later sought voluntary dismissal of their case so that compensation payments from a particular fund of $4.5 billion could begin. The U.S. government filed a Statement of Interest, declaring that the foreign policy interests of the U.S. require that the organizations set up to furnishing compensation for Holocaust victims should resolve claims like this.
On July 17, 2000, Germany and the U.S. signed an agreement for the "Remembrance, Responsibility and the Future Foundation." This is a joint organization of the German government and German companies to compensate former forced laborers or those who were harmed by German companies during the Nazi dictatorship (see Sovereign Immunity case, above). The German government and German companies have committed approximately $4.5 billion to the compensation fund. The Agreement, however, does not allow compensation payments unless the U.S. courts have dismissed all Holocaust litigation against German companies thus bringing about "legal peace" (Rechtssicherheit). The German Bundestag (Lower House of Germany's Parliament) has to determine that "legal peace" has come to pass before it will allow the payment of funds. Accordingly, the plaintiffs (except one) moved for voluntary dismissal of their case.
The district court refused to dismiss. It expressed concerns for some plaintiffs who had settled their claims with Austrian banks in exchange for an assignment of the Austrian banks' claims against German banks for misappropriation of bank assets. On May 11, 2001, the district court issued a written order that would grant only a conditional dismissal.
Both plaintiffs and defendants sought a writ of mandamus from the appellate court to have the court unconditionally dismiss the case.
The U.S...
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