DeWeerth v. Baldinger (II)

Gerda DeWeerth (plaintiff) was the original owner of a painting by Claude Monet valued at over $500,000. In 1945, the painting was stolen from her sister’s home in Germany. After DeWeerth discovered that the painting had been stolen, she attempted to locate it without success. In 1957, Edith Baldinger (defendant) purchased the stolen painting from an art gallery in New York City in good faith and without any knowledge that it was stolen. Baldinger displayed the painting primarily in her home for years. In 1982, DeWeerth’s nephew learned about the 1957 sale and told DeWeerth. DeWeerth sued Baldinger in federal district court to recover the painting. The district court ruled for DeWeerth and ordered the painting returned. Baldinger appealed. The federal appellate court recognized that state law on the matter was unsettled. However, the federal appellate court believed that the state courts would most likely find a reasonable-diligence requirement. Under this requirement, DeWeerth’s lawsuit failed. On remand, the federal district court entered judgment for Baldinger. Later, in a different case, New York’s highest state court ruled the opposite of how the federal appellate court thought it would, finding there was no reasonable-diligence requirement in a situation like DeWeerth’s and never had been. DeWeerth filed a motion in the federal district court for relief from the judgment for Baldinger. DeWeerth argued that under the newly settled state law she should have won the case. The district court considered the motion.