USA Trends and Developments Contributed by: Frank K. Lord IV and Sarina Taylor, Withers
New Legislation on Nazi-Era Art Claims In 2016, the USA enacted the Holocaust Art Recovery Act (the “HEAR Act”), Pub. L. No 114-308, 130 Stat. 1524 (2016), which extended the statute of limitations for claims to artworks lost to persecution during the Nazi era. In 2026, the USA enacted an expanded ver - sion of the HEAR Act (the “2025 Act”), Pub. L. No 119-82, 140 Stat. 755 (2026). It became effective on 13 April 2026. The 2025 Act eliminates a number of defences that have, until now, been used successfully to defend against claims. The 2025 Act fundamentally alters the legal landscape for both claimants seeking to recover lost artworks and current owners (wheth - er individuals, art dealers, or institutions) who have works that may be subject to claims. It is important for everyone who is or may be affected by the law to consult with counsel and proactively prepare for the impacts of this change in the law. Background The Nazi Era and its aftermath Shortly after their rise to power in 1933, the Nazis and their collaborators began systematic campaigns of persecution against those whom they believed were inferior. Jewish people were the largest group targeted, but also included were Slavic peoples, Roma, Sinti, Black people, LGBT+ people, political opponents, and people with disabilities. Those targeted were subject to imprisonment, violence, and theft of property, both directly and through appropriations that were given a false veneer of legality. By the end of World War II, vast amounts of prop - erty – including hundreds of thousands of artworks – had been taken from their former owners. The Allies worked to recover property and return it, but not all lost property was located in the immediate aftermath of the War. Further, some property that was recovered and returned to its country of origin was not restituted – in some cases even when the former owners or their heirs came forward to claim it. Property that was not recovered continued to circulate in the art market and was often acquired by people who were unaware that it had been taken through persecution. Contemporary restitution efforts In the 1990s, after the collapse of the Soviet Union and the reunification of Germany, new attention was
paid to the lingering aftermath of World War II, and the issue of Nazi-era art looting began to gain traction in the public’s consciousness. In the USA, increased pressure to address the prob - lem of Nazi-era thefts came in 1997. From October 1997 through January 1998, the Museum of Modern Art (MoMA) in New York hosted an exhibition entitled: “Egon Schiele: The Leopold Collection.’’ The exhibi - tion was comprised of works from the collection of Rudolf Leopold, which is now housed in the Leopold Museum in Vienna. During the course of the exhibition, a series of articles in the New York Times revealed that some of the artworks in the exhibition had allegedly been lost to Nazi-era persecution and had not been subsequently restituted. In particular, the press focused on “Portrait of Wally” – a painting by Schiele of his mistress, Wally Neuzil. Documents from the archive of Galerie St. Etienne in New York showed that Lea Bondi Jaray had been forced to surrender the painting after the Germany invasion of Austria in 1938. They also showed that she had attempted to recover it after the War, and that Rudolf Leopold had acquired it even after having been told by Lea Bondi of the claim and circumstanc - es of the loss. Before MoMA could return the works in the exhibition to Austria, litigation was commenced to keep the painting in New York so that the claim could be adjudicated. In 1999, a civil forfeiture action was filed by the US Attorney’s Office in the Southern District of New York and the painting was seized. It remained in the USA until the case was settled when the Leopold Museum agreed to pay Lea Bondi’s heirs a sum that was essentially the fair market value of the painting at the time to settle the case. The painting returned to Austria, where it hangs alongside a plaque relating the history of the taking and the recovery. The Washington Conference The public debate surrounding “Portrait of Wally” and related revelations about Nazi gold and other assets that had not been restituted were the catalyst for the Washington Conference on Nazi-Looted Art, which brought together more than 40 governments, and many non-governmental entities, at the Department of State from 30 November through 3 December 1998. The meeting produced an agreement on principles
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