In Republic of Hungary v. Simon, the Supreme Court held the mere allegation of commingling funds doesn't satisfy the commercial nexus requirement under the Foreign Sovereign Immunities Act (FSIA)’s expropriation exception. Holocaust survivors sued Hungary and its national railway, seeking damages for property seized during World War II, arguing that Hungary liquidated the property, commingled the proceeds with government funds, and later used some of those funds in U.S. commercial activities.
The Court ruled that the FSIA requires plaintiffs to plausibly trace specific expropriated property or its direct proceeds to commercial activity in the United States. A broad commingling theory, doesn't meet this standard. The Court vacated the D.C. Circuit’s ruling and remanded the case for further proceedings. Justice Sotomayor writing for a unanimous Court.
Read by Jeff Barnum.
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