The Herzog Collection has been the subject of multiple lawsuits since the end of World War II. Baron Mor Lipot Herzog had put together a collection of paintings, sculptures and decorative arts items during his lifetime. At the time of his death in 1934, it's hard to imagine he had any inkling of the fate of the Collection or the struggles of his heirs to hold on to his legacy.

In our last couple of posts we've talked about the history of Hungary -- the country's alliance with the Nazis during World War II, then the Communist takeover.

The Baron's children scattered during the Holocaust. One son died in a labor camp on the Eastern Front. The Baron's daughter Elizabeth eventually settled in the U.S., but the Collection had been broken up, disappearing into the USSR or in the possession of museums in Budapest.

Elizabeth was aware of Hungary's 1954 Museum Decree that effectively dispossessed the family of the artworks. She applied for relief under the 1955 amendment to the International Claims Settlement Act of 1949.

During the war, the U.S. government had blocked foreign governments' access to assets on deposit in this country. When the Iron Curtain fell, and it became clear that diplomatic relations would not be the warmest between Eastern Bloc countries and the U.S., the government set up a Foreign Claims Settlement Commission. The Commission used those funds to compensate U.S. nationals for property lost during the war or after nationalization.

Elizabeth's claim included real estate as well as the artworks she knew were held by the Budapest museums. The Commission awarded her $210,000 in 1959.

The most important piece of information in this chapter of the Herzog Collection story is that Elizabeth was compensated as a U.S. national. This would be used against her in the family's 2010 suit.

More to come. We will also entertain ideas of who, aside from Kate Winslet, should be in the movie version.

Source: DAVID L. de CSEPEL, et al. v. REPUBLIC OF HUNGARY, et al., Memorandum, United States District Court for the District of Columbia, Civil Action No. 10-1261 (ESH), filed Sept. 1, 2011