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No. 12-55733
IN THE UNITED STATES COURT OF APPEALSFOR THE NINTH CIRCUIT
__________________________________________________________________
MAREI VON SAHER,
Plaintiff-Appellant,
v.
NORTON SIMON MUSEUM OF ART AT PASADENAAND NORTON SIMON ART FOUNDATION
Defendants-Appellees.__________________________________________________________________
On Appeal from the United States District Courtfor the Central District of California, Case No. CV-07-02866-JFW
The Honorable John F. Walter, United States District Judge__________________________________________________________________
PETITION FOR REHEARING AND REHEARING EN BANCOF DEFENDANTS-APPELLEES
NORTON SIMON MUSEUM OF ART AT PASADENAAND NORTON SIMON ART FOUNDATION
__________________________________________________________________
Ronald L. OlsonLuis Li
Fred A. Rowley, Jr.Eric P. Tuttle
MUNGER, TOLLES & OLSON LLP355 South Grand Avenue, 35th FloorLos Angeles, California 90071-1560
Telephone: (213) 683-9100
Attorneys for Defendants-AppelleesNORTON SIMON MUSEUM OF ART AT PASADENA
and NORTON SIMON ART FOUNDATION
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CORPORATE DISCLOSURE STATEMENT
Defendant-Appellee Norton Simon Art Foundation, a California nonprofit
public benefit corporation, has no parent corporation. No other person or publicly
held corporation owns 10% or more of the stock of the Norton Simon Art
Foundation.
Defendant-Appellee Norton Simon Museum of Art at Pasadena, a California
nonprofit public benefit corporation, has no parent corporation. No other person or
publicly held corporation owns 10% or more of the stock of the Norton Simon
Museum of Art at Pasadena.
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TABLE OF CONTENTS
Page
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CORPORATE DISCLOSURE STATEMENT .........................................................1
INTRODUCTION .....................................................................................................1
STATEMENT............................................................................................................4
REASONS FOR GRANTING THE PETITION.......................................................7
I. The Majority Opinion Contravenes Settled Law by OverridingExecutive-Branch Foreign Policy Pronouncements........................................7
A. The Majority Opinion Upends Executive Branch Foreign Policy........7
B. The Majority Opinion Conflicts with Supreme Court andCircuit Precedent on Deference to Executive Branch ForeignPolicy...................................................................................................12
C. The Majority Opinion Frustrates the Executive’s Conduct ofForeign Relations and Raises Separation of Powers Concerns ..........14
II. The Majority Opinion Announces Unprecedented and UnworkableRules for Analyzing Foreign Policy “Facts” .................................................17
CONCLUSION........................................................................................................19
CERTIFICATE OF COMPLIANCE.......................................................................20
CERTIFICATE OF SERVICE ................................................................................21
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TABLE OF AUTHORITIES
Page(s)
- ii -
CASES
Al-Haramain Islamic Found. v. Bush,507 F.3d 1190 (9th Cir. 2007) ............................................................................13
Am. Ins. Ass’n v. Garamendi,539 U.S. 396 (2003).....................................................................................passim
Corrie v. Caterpillar, Inc.,503 F.3d 974 (9th Cir. 2007) ..............................................................................14
Deutsch v. Turner Corp.,324 F.3d 692 (9th Cir. 2003) ................................................................................7
First Nat’l City Bank v. Banco Nacional de Cuba,406 U.S. 759 (1972)............................................................................................16
Inst. of Cetacean Research v. Sea Shepherd Conservation Soc’y,725 F.3d 940 (9th Cir. 2013) ......................................................................3, 8, 13
Johnson v. Eisentrager,339 U.S. 763 (1950)............................................................................................15
Legal Assistance v. Dep’t of State,104 F.3d 1349 (D.C. Cir. 1997)..........................................................................13
Movsesian v. Victoria Versicherung AG,670 F.3d 1067 (9th Cir. 2012) ........................................................................3, 17
Mujica v. Occidental Petroleum Corp.,381 F. Supp. 2d 1164 (C.D. Cal. 2005) ..............................................................15
Munaf v. Geren,553 U.S. 674 (2008).....................................................................................passim
Sarei v. Rio Tinto PLC,221 F. Supp. 2d 1116 (C.D. Cal. 2002),rev’d on other grounds, 671 F.3d 736 ..........................................................17, 18
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TABLE OF AUTHORITIES(continued)
Page(s)
iii
Sarei v. Rio Tinto, PLC,671 F.3d 736 (9th Cir. 2011)vacated on other grounds, 133 S. Ct. 1995 (2013)...........................................3, 8
Spectrum Stores, Inc. v. Citgo Petroleum Corp.,632 F.3d 938 (5th Cir. 2011) ..............................................................................15
Underhill v. Hernandez,168 U.S. 250 (1897)............................................................................................15
United States v. Pink,315 U.S. 203 (1942)............................................................................................13
von Saher v. Norton Simon Museum of Art,592 F.3d 954 (9th Cir. 2010) ..........................................................................6, 10
Weixum v. Xilai,568 F. Supp. 2d 35 (D.D.C. 2008)......................................................................18
Williams v. Suffolk Ins. Co.,38 U.S. 415 (1839)..........................................................................................8, 17
Ye v. Zemin,383 F.3d 620 (7th Cir. 2004) ..............................................................................14
RULES
FRAP 35.................................................................................................................2, 3
FRAP 40.................................................................................................................3, 9
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INTRODUCTION
The Majority Opinion usurps the Executive Branch’s exclusive power to
declare the foreign policy of the United States, contravening settled Supreme Court
and Circuit precedent that courts “have no authority…to decide what U.S. foreign
policy is,” Op. 37 (Wardlaw, J., dissenting). As Judge Wardlaw noted in dissent,
the Executive clearly “articulated the foreign policy applicable to the very artwork
and transactions at issue here.” Id. 31. It set forth that policy in a Supreme Court
amicus brief signed by State Department Legal Adviser Harold Koh and Acting
Solicitor General Neal Katyal and filed in this case. Yet, rather than heeding this
“clearly expressed” policy and giving it preemptive force (id. 37), the Panel
Majority discredited it as “not convincing” and unworthy of “too much credence”
(id. 24-25). In challenging the Executive’s statement of foreign policy, the
Opinion not only conflicts with binding authority, but also raises grave separation-
of-powers issues. Rehearing or rehearing en banc should be granted.
Plaintiff asserts state-law claims to recover artworks forcibly purchased by
the Nazis in World War II (“WWII”). After the war, the U.S. returned the
paintings to The Netherlands under an “external restitution” policy giving the
Dutch government sole responsibility for restituting them to their owner. The
Netherlands then conducted multiple restitution proceedings for Plaintiff and her
predecessors. The Executive Branch has concluded that these “artworks and
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transactions…, consistent with U.S. policy, have already been the subject of
external and internal restitution proceedings.” (Excerpts of Record (“ER”) 527.) It
has explained that because The Netherlands “conducted bona fide post-war internal
restitution proceedings,” the U.S. has “a substantial interest in respecting the
outcome of that nation’s proceedings.” (ER530.)
The district court and Judge Wardlaw correctly concluded that this federal
policy preempted Plaintiff’s state-law action. By her lawsuit, Plaintiff seeks to
attack Dutch restitution proceedings and impose her own restitution remedy,
entangling U.S. courts in ownership disputes the Executive intended to avoid. But
the Panel Majority rejected the controlling Executive policy, substituting in its
place a Judicial policy on recovered art. The Majority deemed the Executive’s
appraisal of Dutch restitution “troublesome” and undeserving of “‘serious
weight.’” Op. 23-25. Only through this second-guessing was the Majority able to
decide that the U.S. policy here was not one of restitution finality, but the opposite:
that Plaintiff was “just the sort of heir” who should be “encouraged to come
forward to make claims, again.” Id. 21.
The Majority’s attack on Executive Branch foreign policy statements
warrants en banc review. With the Judicial Branch announcing its own policies on
recovered art and Dutch restitution, the U.S. is now speaking in two inconsistent
voices on important policy matters. See FRAP 35(b)(1)(A). That result flouts
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Supreme Court and Circuit precedent, and creates a conflict with out-of-Circuit
authorities. See Id.(b)(1)(A),(B). This Court has repeatedly held that “[t]he
conduct of foreign affairs is within the exclusive province of the Executive, and we
must defer to its views.” Inst. of Cetacean Research v. Sea Shepherd Conservation
Soc’y, 725 F.3d 940, 947 (9th Cir. 2013); accord Sarei v. Rio Tinto, PLC, 671 F.3d
736, 755 (9th Cir. 2011) vacated on other grounds, 133 S. Ct. 1995 (2013). “[I]t is
for the political branches, not the Judiciary, to assess practices in foreign countries
and to determine national policy in light of those assessments.” Munaf v. Geren,
553 U.S. 674, 700-01 (2008). Instead of “proceed[ing] with…circumspection” on
sensitive foreign policy issues, id. at 689, however, the Majority exercised plenary
review, committing demonstrable errors in the process, see FRAP 40(b)(2).
Left standing, the Opinion would radically change the way courts treat
Executive Branch statements of foreign policy. It would authorize courts to pierce
those policy statements whenever they believed the Executive “misunderstood
some of the facts.” Op. 25. And it would allow plaintiffs to avoid the preemptive
force of foreign policies by pleading around them. The Opinion should be vacated
and the appeal reheard. Cf. Movsesian v. Victoria Versicherung AG, 670 F.3d
1067, 1071 (9th Cir. 2012)(en banc)(reversing same panel majority on foreign
affairs preemption).
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STATEMENT
Plaintiff claims she is the owner of two paintings (the “Cranachs”) that were
part of a collection the Nazis forcibly purchased from her predecessors in The
Netherlands. After WWII, the paintings were recovered by the U.S. Army. As the
Executive Branch explained in its amicus brief, the U.S. adopted and implemented
an express foreign policy with respect to such artworks:
First, the “United States returned property taken by the Nazis and recovered
by Allied forces, including artworks like the Cranachs, to their countries of origin
rather than directly to particular claimed owners.” (ER513.) A key purpose of this
“external restitution” policy “was to prevent the U.S. from becoming entangled in
difficult ownership questions regarding confiscated property.” (ER527.)
Second, when a foreign nation “has conducted bona fide post-war internal
restitution proceedings following the return of Nazi-confiscated art to that nation
under the external restitution policy, the United States has a substantial interest in
respecting the outcome of that nation’s proceedings.” (ER530.)
The U.S. externally restituted the Cranachs to The Netherlands after WWII.
Thereafter, The Netherlands convened multiple internal restitution proceedings for
Plaintiff and her predecessors. Shortly after the war, Plaintiff’s predecessor
availed herself of The Netherlands’ restitution scheme. That predecessor filed and
settled a claim for certain artworks and other property, but chose not to claim a
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group of artworks that included the Cranachs. A decade later, an heir to a Russian
noble family “claimed the Cranachs,” asserting they “belonged to his family and
that the Dutch Government had no right, title or interest to, or in, them.” (ER837.)
The Netherlands transferred the Cranachs to the heir in exchange for a payment,
among other things; he in turn sold them to the Museum. (ER837-38.)
In 1998, Plaintiff filed her own restitution petition in The Netherlands,
challenging the fairness of the 1950s restitution process. (ER138-143.) Contrary
to the Majority’s erroneous assertion (Op. 20 n.1), Plaintiff sought not just the
return of artworks in The Netherlands’ possession, but also monetary restitution for
works The Netherlands “has in the meantime sold.” (ER157.) The Netherlands
rejected her claim, and the Hague Court of Appeals affirmed. That Court held that
Plaintiff’s predecessor made a “conscious and well considered decision” to forgo
claiming the artworks, and that “The Netherlands created an adequately guaranteed
procedure for handling applications for the restoration of rights.” (ER160-61.)
Plaintiff filed a third petition under expanded Dutch restitution laws in 2004.
In 2006, the Dutch Government concluded that the Hague Court of Appeals had
already given “a final decision in this case,” and that Plaintiff’s petition was “not
included in the current restitution policy,” but nonetheless agreed to return 206
works in its possession. (ER187.)
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The Executive Branch has carefully assessed these Dutch proceedings. It
concluded that, “consistent with U.S. policies,” the Cranachs “have already been
the subject of both external and internal restitution proceedings.” (ER527.) It
determined that the Dutch restitution proceedings were “bona fide,” and “afforded
petitioner and her predecessor adequate opportunity to press their claims, both after
the War and more recently.” (ER530.) It also determined that Plaintiff’s 1998
restitution petition “included the Cranachs.” (ER515.)
Plaintiff filed this action in 2007, invoking a special California statute of
limitations for Nazi-looted artworks. The district court invalidated the statute on
foreign affairs field-preemption grounds. This Court affirmed that ruling in a 2-1
decision (Thompson, D.W. Nelson), with Judge Pregerson dissenting. von Saher v.
Norton Simon Museum of Art, 592 F.3d 954, 958 (9th Cir. 2010)(“von Saher I”).
After the U.S. filed its amicus brief opposing certiorari, the Supreme Court denied
certiorari.
Plaintiff amended her complaint under a new statute-of-limitations provision
adopted by the California Legislature in response to von Saher I. (ER578.) The
district court dismissed the complaint, holding that “the United States’ policy of
external restitution and respect for the outcome and finality of The Netherlands’
bona fide restitution proceedings, as clearly expressed and explained by the
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Solicitor General in his amicus curiae brief, directly conflicts with the relief sought
in Plaintiff’s action.” (ER9.)
Plaintiff appealed. The Panel Majority reversed, holding that Plaintiff’s
“claims against the Museum and the remedies she seeks do not conflict with
foreign policy.” Op. 25. Judge Wardlaw dissented.
REASONS FOR GRANTING THE PETITION
I. The Majority Opinion Contravenes Settled Law by OverridingExecutive-Branch Foreign Policy Pronouncements
The Majority Opinion openly second-guesses federal foreign policy on a
matter that goes to the Executive’s core “power to…resolve war claims.” Deutsch
v. Turner Corp., 324 F.3d 692, 713-14 (9th Cir. 2003). The Executive has already
established the U.S.’s policy on recovered art and Dutch restitution—including the
restitution proceedings convened for this Plaintiff. By failing to follow that policy,
and articulating its own Judicial restitution policy, the Opinion disregards settled
Supreme Court and Circuit precedent requiring deference to Executive-Branch
statements of foreign policy. The Opinion would leave the U.S. speaking in two
voices on these matters, raising serious separation-of-powers concerns and inviting
more judicial incursions into foreign affairs.
A. The Majority Opinion Upends Executive Branch Foreign Policy
The conflict preemption issue raised by Plaintiff’s claim is straightforward.
Plaintiff invokes California law to obtain the Cranachs, works the U.S. recovered
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and externally restituted to The Netherlands. But “the United States has clearly
stated its foreign policy position that it will not be involved in adjudicating
ownership disputes over the Cranachs.” Op. 32 (Wardlaw, J., dissenting).
Plaintiff’s “attempt to recover the Cranachs in U.S. courts directly thwarts the
central objective of U.S. foreign policy in this area: to avoid entanglement in
ownership disputes over externally restituted property if the victim had an adequate
opportunity to recover it in the country of origin.” Id. 33.
As Judge Wardlaw observed, that conflict “should be the end of the matter.”
Op. 37. The Constitution commits the “‘vast share of responsibility for the
conduct of our foreign relations’” to the Executive Branch, and state claims
conflicting directly with Executive policy must “‘give way.’” Am. Ins. Ass’n v.
Garamendi, 539 U.S. 396, 414 (2003)(citation omitted). Because “[t]he conduct of
foreign policy is not the role of the courts,” Sarei, 671 F.3d at 755, our
constitutional structure requires the Judicial Branch to “defer to [the Executive’s]
views” on such matters, Cetacean, 725 F.3d at 947 (citing Williams v. Suffolk Ins.
Co., 38 U.S. 415, 420 (1839)). Of course, it is for the Judiciary to decide whether
a foreign policy preempts state laws or state-law claims. But here, there is a patent
conflict between Plaintiff’s action—which challenges Dutch restitution—and U.S.
foreign policy as stated by the Executive. Even the Panel Majority does not
question that.
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Instead of respecting these Executive policies, the Majority announced
conflicting, erroneous policies, see FRAP 40(a)(2):
Recovered Art: The Executive has clearly stated: “[w]hen a foreign nation,
like the Netherlands here, has conducted bona fide post-war internal restitution
proceedings following the return of Nazi-confiscated art to that nation under the
external restitution policy, the United States has a substantial interest in respecting
the outcome of that nation’s proceedings.” (ER530.) The Executive explained that
it “has a continuing interest in [external restitution’s] finality when appropriate
actions have been taken by a foreign government concerning the internal restitution
of art that was externally restituted.” (ER528.) Addressing the Washington
Principles and Terezin Declaration, two nonbinding multinational statements on
Nazi-looted art, the Executive noted that “contemporary U.S. policy supports the
fair and just resolution of claims involving Nazi-confiscated art, while also
respecting the bona fide internal restitution proceedings of foreign governments.”
(ER517-18.)
The Executive’s explication of foreign policy is absent from the Panel
Majority’s account of “Federal Policy on Nazi-Looted Art.” Op. 16-18. Instead,
the Majority offered its own policy statement:
U.S. policy on the restitution of Nazi-looted art includes the followingtenets: (1) a commitment to respect the finality of “appropriate actions”taken by foreign nations to facilitate the internal restitution of plundered art;(2) a pledge to identify Nazi-looted art that has not been restituted and to
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publicize those artworks in order to facilitate the identification of prewarowners and their heirs; (3) the encouragement of prewar owners and theirheirs to come forward and claim art that has not been restituted; (4)concerted efforts to achieve expeditious, just and fair outcomes when heirsclaim ownership to looted art; (5) the encouragement of everyone, includingpublic and private institutions, to follow the Washington Principles; and (6)a recommendation that every effort be made to remedy the consequences offorced sales.
Id. 18.
This policy statement reformulates the Executive’s policy in critical and
erroneous respects. The Majority shifts the policy’s focus from the process
afforded a claimant to the outcome of the proceedings. As Judge Wardlaw noted,
the “relevant issue” under U.S. policy (Op. 33), is whether the Cranachs were
“subject (or potentially subject) to bona fide internal restitution proceedings in the
Netherlands” (ER528). The Executive has explained that Dutch internal restitution
is entitled to respect because “the Dutch government has afforded petitioner and
her predecessor adequate opportunity to press their claims.” (ER530.)
In recasting the Executive’s concern with process and the “opportunity” for
restitution, the Majority ignores a central objective of external restitution:
“prevent[ing] the United States from becoming entangled in difficult ownership
questions” posed by individual restitution. (ER527.) As von Saher I recognized,
external restitution left it to “the individual countries to handle restitution in
whatever way they see fit,’” with the U.S. “play[ing] no further role” once “the art
was returned to the country of origin.” 592 F.3d at 962. This finality concern is
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carried forward by the Washington Principles and Terezin Declaration. These non-
binding principles, the Executive has explained, address Nazi-looted artworks “not
subsequently restituted or available to be restituted through bona fide
proceedings,” and “do[] not support relitigation of all art claims in the U.S.
Courts.” (ER529.)
Dutch Internal Restitution: The Panel Majority challenged the Executive’s
specific “policy judgment” on the scope and adequacy of Dutch restitution. Op. 35
(Wardlaw, J. dissenting). The Executive’s assessment is that “this case concerns
artworks and transactions that, consistent with U.S. policies, have already been the
subject of both external and internal restitution proceedings.” (ER527.) The
Dutch internal restitution proceedings are “bona fide” for purposes of federal
policy because The Netherlands gave Plaintiff and her predecessors an “adequate
opportunity to press their claims, both after the War and more recently.” (ER530.)
Again, however, the Majority disagreed with the Executive. It rejected the
Executive’s assessment that the U.S. had “a substantial interest in respecting the
outcome of [Dutch] proceedings” because The Netherlands had “conducted bona
fide restitution proceedings.” (ER530.) Instead, it found the opposite—that
Plaintiff “is just the sort of heir that the Washington Principles and Terezin
Declaration encouraged to come forward to make claims.” Op. 21. The Majority
based this conclusion on the view that “the Cranachs were never subject to postwar
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internal restitution proceedings and that the 1998 and 2004 proceedings excluded
the Cranachs.” Id. 25.
These determinations contradict two express foreign policy judgments by the
Executive. First, federal recovered art policy requires only that externally-
restituted artwork be “potentially subject” to bona fide restitution proceedings.
(ER528 n.3 (emphasis added).) Because even the Majority recognizes that “the
paintings were potentially subject to restitution” under The Netherlands’ “postwar
internal restitution process” (Op. 25), that should be the end of the preemption
analysis. Second, even if one reaches the question whether the paintings were
actually subject to internal restitution, the Majority’s supposition that the Dutch
proceedings “excluded the Cranachs” contradicts the Executive’s determination
that Plaintiff’s 1998 petition “included the Cranachs.” (ER515.) That
determination is supported by Plaintiff’s request that the Hague Court of Appeals
“order the State to pay the[] sales prices” for artworks it had sold (ER157), and
Plaintiff’s allegation that The Netherlands sold the Cranachs to the Russian heir in
1966 (ER837).
B. The Majority Opinion Conflicts with Supreme Court and CircuitPrecedent on Deference to Executive Branch Foreign Policy
By overriding the Executive Branch on an important foreign policy matter,
the Majority Opinion sets this Circuit at odds with Supreme Court precedent, its
own case law, and the law of other Circuits. The Supreme Court has stressed that
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“[i]t is for the political branches, not the Judiciary, to assess practices in foreign
countries and to determine national policy in light of those assessments.” Munaf,
553 U.S. at 700-01. This flows from foundational separation-of-powers principles,
which teach that “[t]he conduct of foreign affairs is within the exclusive province
of the Executive.” Cetacean, 725 F.3d at 947. When it comes to stating U.S.
foreign policy, the Executive’s judgment “is not open to judicial inquiry.” United
States v. Pink, 315 U.S. 203, 222-23 (1942). In Judge Wardlaw’s words, the courts
“have no authority…to decide what U.S. foreign policy is.” Op. 37.
The Panel Majority disregarded those admonitions. Its Opinion not only
recasts the controlling foreign policy, but deems the Executive’s policy statements
unworthy of “too much credence” or “‘serious weight.’” Op. 24-25, 23. Even
though the selfsame policy statements were before the Supreme Court when it
dened certiorari, the Opinion characterizes them as “worrisome,” “troublesome,”
and “not…convincing,” and criticizes the Executive for “misunderst[anding] some
of the facts,” id. 24-25. This is just the sort of “second-guess[ing]” of Executive
foreign policy pronouncements that the Supreme Court, see Munaf, 553 U.S. at
702, this Court, e.g., Al-Haramain Islamic Found. v. Bush, 507 F.3d 1190, 1203
(9th Cir. 2007), and other Circuits, e.g., Legal Assistance v. Dep’t of State, 104
F.3d 1349, 1353 (D.C. Cir. 1997), have rejected. And the risks of such aggressive
review are on full display in the Majority’s numerous errors (supra at 9-12), as
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well as its acknowledgment of having “misunderstood federal policy” in von
Saher I, Op. 16.
That the Executive’s policy was “presented in a brief in a different iteration
of this case that raised different arguments” (Op. 25) is “immaterial” (id. 36
(Wardlaw, J.)). Because the amicus brief was a “collaborative effort of the State
Department and the Department of Justice,” its policy statements are “more than
simply the advocacy position of the government”; they constitute “the official
position of the Executive Branch.” Ye v. Zemin, 383 F.3d 620, 623 n.6 (7th Cir.
2004). The Majority’s suggestion that official foreign policy requires more than a
brief signed by “high-level executive officials” who “faithfully represent[] the
President’s chosen policy” is refuted by Garamendi, 539 U.S. at 423 n.13, and the
many cases deferring to such statements, e.g., Munaf, 553 U.S. at 702.
C. The Majority Opinion Frustrates the Executive’s Conduct ofForeign Relations and Raises Separation of Powers Concerns
Left uncorrected, the Majority’s foray into diplomatic waters would invite
courts to substitute their own foreign policy statements for the Executive’s. Courts
would feel free to disagree with the President’s diplomatic judgment on matters
such as Iraq’s treatment of prisoners, cf. Munaf, 553 U.S. at 702, or the sale of
tractors to Israel, cf. Corrie v. Caterpillar, Inc., 503 F.3d 974, 978 (9th Cir. 2007).
That could draw the judiciary into conflict with the Executive not just in war
reparations cases, but in a wide range of matters implicating foreign relations,
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including Alien Tort cases, e.g., Mujica v. Occidental Petroleum Corp., 381 F.
Supp. 2d 1164 (C.D. Cal. 2005), and cases involving foreign trade, e.g., Spectrum
Stores, Inc. v. Citgo Petroleum Corp., 632 F.3d 938 (5th Cir. 2011).
The Majority Opinion thus portends a serious separation-of-powers problem,
one warranting immediate intervention. It pits a divided federal court panel against
the Executive on foreign policy matters within the Executive’s province. The
President “is exclusively responsible” for the “conduct of diplomatic and foreign
affairs,” Johnson v. Eisentrager, 339 U.S. 763, 789 (1950), and it is not the
business of courts “to judge the wisdom of the National Government’s policy,”
Garamendi, 539 U.S. at 427. Here, however, the Majority has vocally criticized
the Executive’s assessment of an ally’s war-remedies process. The existence of
conflicting Executive and Judicial-Branch policies on recovered art and Dutch
restitution cannot but “‘compromise[] the very capacity of the President to speak
for the Nation with one voice in dealing with other governments.’” Id. 424.
That the policy at issue concerns actions by a foreign sovereign only
exacerbates this inter-branch tension. The Executive’s foreign policy power is at
its apex, and judicial authority at its low-point, when it comes to assessing and
addressing a foreign state’s conduct. See Munaf, 553 U.S. at 700. That is why the
act of state doctrine bars courts from “sit[ting] in judgment” on the validity of
actions by foreign sovereigns, see Underhill v. Hernandez, 168 U.S. 250, 252
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(1897), and thereby “embarrass[ing] the conduct of foreign relations by the
political branches of the [American] government,” First Nat’l City Bank v. Banco
Nacional de Cuba, 406 U.S. 759, 765 (1972).
The Majority Opinion flips these principles, selectively quoting a foreign
government’s statements about its conduct and using them to challenge the U.S.
Executive’s appraisal of that conduct. The Majority poses “serious questions”
about whether The Netherlands took “appropriate action” in the 1950s restitution
proceedings. Op. 19. While purporting to reserve judgment, it credits Plaintiff’s
allegations that Dutch post-war restitution “made it difficult for Jews like
[Plaintiff] to recover their property.’” Id. It endorses a Dutch committee report
characterizing the restitution process as “‘legalistic, bureaucratic, cold and often
even callous’” (id.), but fails to acknowledge the Hague Court of Appeals’ holding
that the proceedings were “adequately guaranteed” or the Dutch Government’s
reaffirmance of that ruling (ER161). And the Majority “strongly suggests” that
the district court “should determine the bona fides of the Netherlands’ 1951
internal restitution process” on remand. Op. 36 (Wardlaw, J., dissenting).
Both precedent and separation-of-powers principles foreclose this searching
review of Dutch restitution, and make clear that the Court “may not displace the
Executive’s assessment that the Netherlands’ postwar proceedings were adequate.”
Id. 35. In challenging that assessment and criticizing Dutch restitution, the
OT\UN EFBIIKGG DKCEKCFDEH RPN MEKFLLD PX]QY][^N IIBE STWUN FE ZV FJ BFE ON JKC
- 17 -
Majority injects this Court into a “highly politicized inquiry into the conduct of a
foreign nation,” Movsesian, 670 F.3d at 1076, realizing the Supreme Court’s
concern with the Judicial Branch “‘disparag[ing] certain foreign regimes,’”
Garamendi, 539 U.S. at 417.
II. The Majority Opinion Announces Unprecedented and UnworkableRules for Analyzing Foreign Policy “Facts”
The Panel Majority took the position that it could override the Executive’s
assessment of Dutch restitution because “the [Solicitor General] goes beyond
explaining federal foreign policy and appears to make factual determinations.” Op.
24. Even though the Executive supported its policy judgments with citations to
official Dutch records of undisputed authenticity (ER126-28), the Majority showed
them no deference, and indeed credited Plaintiff’s allegations over the Executive’s
assessment (Op. 24). This novel pleading rule, and the Majority’s artificial
distinction between policy and fact, is contrary to precedent. If upheld, it would
leave courts uncertain about how to treat Executive foreign policy statements.
As Judge Wardlaw explained, U.S. foreign policy “often relies on factual
assumptions inseparable from the policy itself.” Op. 39 n.4. For example, courts
treat the Executive’s assessment of facts grounding its recognition of foreign
sovereigns as “conclusive on the judicial department,” Williams, 38 U.S. at 420,
and consistently decline to examine whether the Executive’s foreign policies rest
on “misinformation or faulty reasoning,” cf. Sarei v. Rio Tinto PLC, 221 F. Supp.
OT\UN EFBIIKGG DKCEKCFDEH RPN MEKFLLD PX]QY][^N IIBE STWUN FF ZV FJ BFF ON JKC
- 18 -
2d 1116, 1181-82 (C.D. Cal. 2002), rev’d on other grounds, 671 F.3d 736. This is
illustrated by Munaf, where the Court accepted not just the Executive’s statement
“that it is the policy of the United States not to transfer an individual in
circumstances where torture is likely to result,” but also the Executive’s
application of that policy to the facts. 553 U.S. at 702. The Court refused “to
second-guess” the State Department’s “‘determin[ation] that the [Iraqi] Justice
Ministry…ha[s] generally met internationally accepted standards for basic prisoner
needs.’” Id.
The Majority’s “distinction between ‘explaining federal foreign policy’ and
‘mak[ing] factual determinations’” contradicts Munaf, and is “unworkable.” Op.
39 n.4 (Wardlaw, J.). To take Judge Wardlaw’s example, “the federal foreign
policy that ‘Iran’s pursuit of nuclear weapons is unacceptable’ entails a factual
assumption that Iran is pursuing nuclear weapons.” Id. Similarly, the Executive’s
head-of-state immunity determinations entail the factual assumption that a foreign
officer “functioned as an official diplomatic envoy.” E.g., Weixum v. Xilai, 568 F.
Supp. 2d 35, 38 (D.D.C. 2008). Distinguishing policy from fact in such situations
is something courts are “not suited” to do. Munaf, 553 U.S. at 702.
By crediting Plaintiff’s “factual allegations” over the Executive’s assessment
of Dutch restitution (Op. 13), the Majority departs yet further from Munaf,
adopting a pleading rule that threatens to work mischief in preemption cases. The
OT\UN EFBIIKGG DKCEKCFDEH RPN MEKFLLD PX]QY][^N IIBE STWUN FG ZV FJ BFG ON JKC
- 19 -
Munaf Court credited “the Executive’s assessment of the foreign country’s legal
system” over the petitioner’s “allegation” that his “transfer to Iraqi custody [was]
likely to result in torture.” 553 U.S. at 702, 700. If district courts were instead
bound to credit allegations contradicting Executive foreign policy, they would be
hamstrung in their ability to dismiss preempted claims. District courts could not
resolve a foreign affairs preemption defense before summary judgment or trial,
requiring them to assess competing evidence of U.S. foreign policy. Such
protracted litigation would defeat the purpose of the foreign affairs doctrine, which
is to prevent state law from “plac[ing] the Government at a disadvantage” in
diplomatic relations. See Garamendi, 539 U.S. at 424.
CONCLUSION
Panel rehearing and/or rehearing en banc should be granted.
DATED: July 17, 2014 MUNGER, TOLLES & OLSON LLPRONALD L. OLSONLUIS LIFRED A. ROWLEY, JR.ERIC P. TUTTLE
By: /s Fred A. Rowley, Jr.FRED A. ROWLEY, JR.
Attorneys for Defendants-AppelleesNORTON SIMON MUSEUM OF ARTAT PASADENA and NORTONSIMON ART FOUNDATION
OT\UN EFBIIKGG DKCEKCFDEH RPN MEKFLLD PX]QY][^N IIBE STWUN FH ZV FJ BFH ON JKC
- 20 -
CERTIFICATE OF COMPLIANCE
I certify pursuant to Federal Rules of Appellate Procedure 35(a) and 40(b)
and Ninth Circuit Rules 35-4(a) and 40-1(a) that the attached brief is
proportionately spaced, has a typeface of 14 points, and contains 4,199 words.
Dated: July 17, 2014
/s Fred A. Rowley, Jr.Fred A. Rowley, Jr.
OT\UN EFBIIKGG DKCEKCFDEH RPN MEKFLLD PX]QY][^N IIBE STWUN FI ZV FJ BFI ON JKC
CERTIFICATE OF SERVICE
I hereby certify that on July 17, 2014, I caused to be electronically filed the
foregoing PETITION FOR REHEARING AND REHEARING EN BANC OF
DEFENDANTS-APPELLEES NORTON SIMON MUSEUM OF ART AT
PASADENA AND NORTON SIMON ART FOUNDATION with the Clerk of
the Court for the United States Court of Appeals by using the appellate CM/ECF
system. Participants in the case who are registered CM/ECF users will be served
by the appellate CM/ECF system.
I further certify that some of the participants in the case are not registered
CM/ECF users. I caused to be mailed the foregoing document by Federal Express
(overnight delivery) to the following non-CM/ECF participants:
Donald S. BurrisE. Randol Schoenberg
Burris, Schoenberg & Walden LLP12121 Wilshire Boulevard, Suite 800
Los Angeles, CA 90025-1168
Dated: July 17, 2014
/s Fred A. Rowley, Jr.Fred A. Rowley, Jr.
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