Holocaust Survivors’ Suit to Collect Insurance Claims Sent Back to State

Three Holocaust survivors from the Los Angeles area won an important legal skirmish Monday in a lawsuit against an international commission that was set up to help victims collect on claims against European insurance companies.

Siding with plaintiffs Si Frumkin of Studio City, Manny Steinberg of West Hills and Dr. Jack Brauns of West Covina, U.S. District Court Judge Ronald S. W. Lew sent their lawsuit back to Los Angeles County Superior Court, where it was originally filed.

Lawyers for the International Commission on Holocaust Era Insurance Claims sought to have the lawsuit adjudicated in federal court where they figured they stood a better chance of having it dismissed. They contend the suit interferes with U.S. foreign policy.

“This keeps the case alive,” said William Shernoff, attorney for the three survivors, who are in their 70s.

The lawsuit accuses the commission of siding with Assicurazioni Generali of Italy, one of Europe’s largest insurance carriers, to delay or deny payments totaling more than $1 billion to Holocaust victims and their heirs. Generali wrote thousands of policies to Eastern European Jews before the outbreak of World War II.

In drafting the suit, Shernoff accused the commission of violating California’s unfair business practices code. He said he did so to avoid raising any federal issues. Lew agreed, explaining why he was sending the case back to state court.

The commission, headed by former Secretary of State Lawrence Eagleberger, was established in Switzerland in 1998 by representatives of European insurance companies, leading Jewish organizations, the state of Israel and the National Assn. of Insurance Commissioners to expedite payment of unpaid claims.

Since its founding, the commission has come under extensive criticism for allegedly moving too slowly, a contention it denies. According to the commission’s website, about $50 million in settlement offers have been made to 3,150 claimants to date. An additional 20,327 claims are being processed, while 58,952 others are awaiting review, the commission said.