The United States District Court for the District of Columbia has issued a decision granting the Republic of Hungary’s Motion for Certification. The Court’s decision grants Hungary’s request for immediate review of decision and illustrates that there are valid grounds for difference of opinion as to whether the Herzog case can proceed in U.S. courts.

“We are pleased the district court recognized that its initial decision allowing the Herzog case to proceed in the United States should be reviewed,” said Thaddeus J. Stauber attorney, equity partner of Nixon Peabody LLP. He added, “Thus, the Judge agreed the district court proceedings should be stayed so the appellate courts can immediately consider whether the case should go forward.”

In most actions, an appellate court will not review a district court’s decision unless, and until, there has been a final judgment. There are, however, circumstances where a court’s decision at the motion to dismiss stage may be of such importance that the district court will certify the decision for immediate, or interlocutory, review. In late September, Hungary filed a motion asking that the district court certify the potentially dispositive issues (e.g., whether the doctrine of forum non conveniens warrants dismissal, whether the case presents non-justiciable political questions, whether the act of state doctrine bars plaintiffs’ claims) that the court had rejected at such an early stage in the case.

Recognizing that these issues: (1) involve controlling questions of law; (2) a substantial ground for difference of opinion concerning the judge’s ruling exists, and (3) an immediate appeal would materially advance litigation, the district court took the rare step of certifying the September 1, 2011, decision for interlocutory appeal.

The Republic of Hungary, the Hungarian National Gallery, the Museum of Fine Arts, the Museum of Applied Arts, and the Budapest University of Technology and Economics are represented by Thaddeus J. Stauber and Sarah E. André, Nixon Peabody LLP’s International litigation team, and Dr. Orsolya Bánki of the e|n|w|c Attorneys at Law in Budapest, Hungary.

(Ministry of National Development , Department of Communication)