Germany Launches Arbitration Tribunal for Nazi-Era Art Claims

The Federal Government of Germany has established a new arbitration tribunal to expedite the resolution of claims related to cultural property looted during the Nazi era. Commencing operations on March 26, 2025, this initiative aims to provide a more efficient pathway for Holocaust survivors and their legal heirs to reclaim artworks and cultural assets that were seized under the Nazi regime.

This tribunal builds upon the groundwork laid by the long-standing Advisory Commission, often referred to as the Limbach Commission, which has been operational since 2003. A significant change introduced by the new tribunal is the concept of unilateral appealability. Under this framework, either party involved in a case can appeal a decision without needing the consent of the other party. This marks a notable shift from the previous requirement for mutual agreement before an appeal could proceed.

For the first time, Holocaust survivors and their descendants can initiate arbitration proceedings directly, particularly in cases involving artworks held in public collections. The tribunal consists of 36 arbitrators and is co-chaired by former European Court of Human Rights judge Elisabeth Steiner and former Saarland Minister-President Peter Müller. Based in Berlin, the tribunal operates under strict procedural guidelines designed to ensure transparency and consistency.

The arbitration panels are expected to deliver binding decisions based on a structured evaluation framework. This framework aims to facilitate the rapid resolution of restitution disputes, nearly 80 years after the conclusion of the Second World War. During this period, countless Jewish families lost significant cultural property, including paintings, books, and personal belongings.

In 1998, Germany, alongside 43 other countries, signed the Washington Principles on Nazi-Confiscated Art, which were intended to address the restitution of art and cultural property. Since then, efforts in provenance research have led to the return of more than 7,700 artworks, 27,500 books, and thousands of archival objects. Nevertheless, the Advisory Commission had limited authority, resolving only 26 cases in over two decades. Former Commission Chair Hans-Jürgen Papier criticized the process as an “unworthy quarrel over works of art,” highlighting the Commission’s inability to enforce binding decisions.

One prominent case affected by this reform is Pablo Picasso’s painting, which had been the subject of a lengthy recovery attempt by the heirs of Jewish banker Paul von Mendelssohn-Bartholdy. After 16 years of unsuccessful negotiations with the Bavarian State Painting Collections, the family can now directly pursue their claim against the museums, which had previously resisted such claims.

While several major museums, including the Bavarian State Painting Collection, Hamburger Kunsthalle, and Prussian Cultural Heritage Foundation, have endorsed the new system, fewer than 50 of Germany’s approximately 11,000 municipalities have formally joined the initiative. As the tribunal begins its work, numerous restitution claims, including those related to artworks by Max Beckmann and others, are already pending.

Lawyers and experts remain divided on what the tribunal’s inaugural judgments will mean for the future of Nazi-era restitution in Germany. The establishment of this tribunal represents a significant step towards addressing historical injustices and restoring cultural property to rightful owners.