Paul Chaim Shlomo Fischer v. Magyar Allamvasutak Zrt.

CourtDistrict Court, N.D. Illinois
DecidedSeptember 16, 2025
Docket1:10-cv-00868
StatusUnknown

This text of Paul Chaim Shlomo Fischer v. Magyar Allamvasutak Zrt. (Paul Chaim Shlomo Fischer v. Magyar Allamvasutak Zrt.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Paul Chaim Shlomo Fischer v. Magyar Allamvasutak Zrt., (N.D. Ill. 2025).

Opinion

UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION

PAUL CHAIM SHLOMO FISCHER, et al. ) ) ) Plaintiffs, ) Case No. 1:10-cv-00868 ) v. ) ) Judge Sharon Johnson Coleman MAGYAR ÁLLAMVASUTAK ZRT., ) ) ) Defendant. )

MEMORANDUM OPINION AND ORDER

Plaintiff, Paul Chain Shlomo Fischer, (“Plaintiff”) filed a motion to reopen case and file second amended complaint. The Court heard oral arguments on the motion on September 15, 2025. For the reasons set forth below, the Court denies Plaintiff’s motion [175]. BACKGROUND This case has a near fifteen-year history with this Court. For the sake of efficiency, the Court will outline the procedural background of this case as it relates to the pending motion. In 2010, Plaintiff, along with other individuals, filed this action against Defendant Magyar Államvasutak Zrt. (“Defendant”) seeking relief for the unlawful taking of property under international law during World War II. (Dkt. 1). Since the Foreign Sovereign Immunities Act (“FSIA”) prohibits a federal court from exercising jurisdiction over a foreign sovereignty for claims that did not occur in the United States, Plaintiff asserts his claims under the FSIA’s expropriation exception based on Defendant’s role in expropriating money and other property from Hungarian Jews during World War II. The Court denied Defendant’s motion to dismiss, which the Seventh Circuit vacated and remanded. Abelesz v. Magyar Nemzeti Bank, 692 F.3d 661, 697 (7th Cir. 2012). In its ruling, the Seventh Circuit instructed “plaintiffs [to] either exhaust any available Hungarian remedies identified by [Defendant] or present to the district court a legally compelling reason for their failure to do so.” Abelesez, 692 F.3d at 666. On remand, this Court again dismissed the action, finding that “[p]laintiffs fall short of providing a legally compelling reason for not pursuing their remedies in Hungarian courts, and [p]laintiffs have not convincingly shown that the Hungarian courts are clearly a sham or inadequate, or that such court proceedings will be unreasonably prolonged.” Fischer v. Magyar

Államvasutak Zrt., No. 10 C 868, 2013 WL 4525408, at *1 (N.D. Ill. Aug. 20, 2013) (Der-Yeghiayan, J.), aff'd, 777 F.3d 847 (7th Cir. 2015). The Seventh Circuit affirmed the dismissal. Fischer v. Magyar Államvasutak Zrt., 777 F.3d 847, 872 (7th Cir. 2015) (“Because plaintiffs have not exhausted their Hungarian remedies and have not yet provided a legally compelling reason for their failure to do so, their claims against the national defendants were properly dismissed without prejudice.”). In June 2017, non-party Iren Gitta Kellner (“Kellner”) filed a motion to reopen the case based on her failed attempts to pursue her claims in Hungarian courts. (Dkt. 131) The Court denied the motion, finding that Kellner did not have standing to reopen the case because she was not a named plaintiff nor a “class member” in an action where no class was certified. (Dkt. 139). The Seventh Circuit dismissed the appeal for lack of subject matter jurisdiction, noting that, among other things, the District Court will need to consider whether Kellner’s attempts to pursue her claims in Hungary were sufficient to satisfy the obligations of Plaintiffs to exhaust their remedies. Fischer v. Magyar

Államvasutak Zrt., 892 F.3d 915, 919 (7th Cir. 2018). In 2019, Plaintiff filed a motion to reopen the case, arguing that Kellner’s unsuccessful efforts in pursuing her claims in Hungary satisfied the Seventh Circuit’s directive that Plaintiff pursue his claims in Hungary or demonstrate a “legally compelling reason” for failing to do so. (Dkt. 163). On reply, Plaintiff argued that amendment would not be futile based on significant developments in relevant law since the Seventh Circuit’s opinion. Specifically, Plaintiff asserted that the Seventh Circuit erred in concluding that exhaustion was required as a matter of international comity before a Court could exercise jurisdiction over a foreign sovereignty pursuant to an FSIA exception, acknowledging that the Supreme Court was set to address this issue of exhaustion in Phillipp v. Federal Republic of Germany and Simon v. Republic of Hungary. (Dkt. 167). After the motion was fully briefed, the Court directed the parties to file a joint status report “concerning the status of the petition for a writ of certiorari in Republic of Hungary v. Simon (18-1447).” (Dkt. 169). Following the submission of the

joint status report, the Court denied the motion, reasoning that the question of whether a court may invoke the doctrine of international comity to abstain from exercising jurisdiction under the FSIA was set to be presented to the Supreme Court in Phillipp v. Federal Republic of Germany and Simon v. Republic of Hungary (“Simon I”) and the outcome of these decisions could have “direct ramifications to this lawsuit and controlling Seventh Circuit case law.” (Dkt. 171). Plaintiff did not appeal the ruling. After the Supreme Court issued its rulings in Phillip and Simon I, Plaintiff filed a Notice of Decision with this Court, admitting that neither case resolved the issue of exhaustion. (Dkt. 173) (“Therefore, the Plaintiffs herein are still required to plead and prove, as a matter of international comity, that they have exhausted Hungarian remedies in order to proceed before this Court.”). Rather, Phillip (and Simon I, which was remanded for proceedings consistent with Phillip) directed that “courts considering Holocaust era claims are now required to consider whether plaintiffs were foreign nationals at the time of the governmental taking.” (Id.) There was no comment on the exhaustion

requirement. The Supreme Court again granted certiorari in the Simon matter. The decision addressed whether a commercial nexus with the United States could be satisfied solely based on the commingled proceeds “from [stolen] property with money in a government treasury account, and then used, decades later, funds from that account in connection with commercial activity in the United States” to satisfy the expropriation exception to the FSIA. Republic of Hungary v. Simon, 604 U.S. 115, 118, 145 S. Ct. 480, 221 L. Ed. 2d 1 (2025) (“Simon II”). The Supreme Court held it did not. Id. at 139. DISCUSSION Plaintiff’s four-paragraph motion requests that the Court reopen the case and allow Plaintiff to file a Second Amended Complaint following the Supreme Court decisions in Phillip and Simon II. Strikingly missing from Plaintiff’s argument is any legal basis upon which the Court moves to reopen

the case. The motion cites no legal standard to allow the Court to address the merits of the motion. Nor does Plaintiff make any argument as to how the Phillip and Simon II decisions provide a basis for reopening the case, much less how the decisions have “direct ramifications to this lawsuit and controlling Seventh Circuit case law” that would provide a legitimate reason for reopening a nearly 15-year-old lawsuit. Instead, Plaintiff merely attaches the opinions to his motion without any explanation as to their relevance. Plaintiff’s motion also requests the Court permit Plaintiff to file a Second Amended Complaint. The motion states that Plaintiff is “prepared to file a Second Amended Complaint in accord with the requirements in Phillip and Simon [II].” (Dkt. 175). To start, the request is wholly improper.

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Colleen P. Kramer v. Banc of America Securities, LLC
355 F.3d 961 (Seventh Circuit, 2004)
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Prince v. Stewart
580 F.3d 571 (Seventh Circuit, 2009)
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Hungary v. Simon
604 U.S. 115 (Supreme Court, 2025)

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Bluebook (online)
Paul Chaim Shlomo Fischer v. Magyar Allamvasutak Zrt., Counsel Stack Legal Research, https://law.counselstack.com/opinion/paul-chaim-shlomo-fischer-v-magyar-allamvasutak-zrt-ilnd-2025.