New York judge reaffirms Art Institute’s ownership of Schiele artwork

A New York judge last week handed the Art Institute of Chicago a small victory in an ongoing legal battle over ownership of a drawing that New York authorities contend was stolen from a Jewish cabaret star by the Nazis.

Judge John Koeltl declined to reverse a ruling made in November that affirmed the museum’s ownership of “Russian War Prisoner” by the artist Egon Schiele, according to court documents filed Feb. 28 in the U.S. District Court for the Southern District of New York.

Koeltl’s decision allows the museum to hang on to the drawing as it prepares to defend its ownership in a separate case brought by the Manhattan district attorney’s office that alleges the drawing is stolen property. Oral arguments in that case are expected to begin in the spring.

The heirs of Fritz Grünbaum, who was forced to turn over his collection after being arrested by the Nazis in 1938, had filed a suit against the Art Institute seeking ownership of “Russian War Prisoner.” In November, Koeltl granted the Art Institute’s motion to dismiss the suit because the heirs filed claims after the statute of limitations had expired, according to a court order.

Grünbaum’s heirs had entered a motion seeking to reconsider the ruling and enter an amended complaint. In denying the motion, Koeltl also cast doubt on whether the work had indeed been stolen.

“Had it been so clear that the artwork was stolen, the plaintiffs would have made a demand sooner than forty years after the defendant acquired the artwork,” Koeltl stated. “The plaintiff’s own allegations detail the difficulty of uncovering the provenance of the artwork and other works that belonged to Grünbaum.”

The Art Institute bought the drawing in 1966. Officials have said they were “confident” in their ownership of the piece. They contend that after Grünbaum was killed at the Dachau concentration camp in 1941 his collection passed to his sister-in-law, who later sold pieces — including “Russian War Prisoner” — to an art dealer.

But last month, New York investigators filed court documents accusing the Art Institute of engaging in “willful blindness” to evidence the drawing was looted by Nazis when it bought the work.

Investigators allege art dealers with Nazi connections acquired Grünbaum’s collection after his death and laundered the pieces by selling them at art galleries. Authorities had previously seized “War Prisoner” along with 10 other pieces identified as stolen property that were in the possession of museums and private collectors. All but “Russian War Prisoner” have since been returned to the heirs.

“We have always acted in good faith,” Megan Michienzi, executive director of public affairs for the Art Institute, said in a statement. “If we had this work unlawfully, we would return it, but that is not the case here, as is made clear in the latest federal court ruling.”