After a protracted legal battle, the city of Düsseldorf finally returned a painting by Wilhelm von Schadow to the heirs of Max Stern, a Jewish art dealer who fled Nazi Germany in the 1930s. The painting in question, The Artist's Children, had been owned by the city for over 60 years. However, the Max Stern Foundation claimed that Stern had been forced to sell the painting under duress. In the new agreement, Düsseldorf will restitute the artwork to the foundation with the condition that the city can buy it back immediately. The terms of the settlement are not publicly known.
Düsseldorf Mayor Stephan Keller expressed satisfaction with the "fair and just solution" and announced that the painting would remain in the city, going on display at the Museum Kunstpalast from August. Stern inherited Galerie Stern, a business in Düsseldorf founded by his father in 1934. However, Nazi authorities forced him to close the gallery in 1937 and confiscated or sold the artworks in his possession. Stern fled to London and later immigrated to Montreal, where he and his wife became the sole owners of the Dominion Gallery of Fine Art, known for promoting young Canadian artists.
After the war, Stern tried to recover the artworks lost during the 1930s, but his efforts were largely in vain. After his death in 1987, his holdings were transferred to Concordia University and McGill University in Montreal, and Hebrew University in Jerusalem. These institutions later founded the Max Stern Art Restitution Project, which has so far recovered 24 pieces, including works by Otto Erdmann, Nicolas Neufchatel, and Jan Brueghel the Elder.
The von Schadow case was complicated due to questions surrounding its provenance. Düsseldorf acquired the painting in 1959 and displayed it in the mayor's office. When the Stern Foundation claimed ownership of the artwork, it cited that the painting had been reproduced in a book about children's portraits in 1937. However, Düsseldorf officials disputed this, saying that the book did not prove that the gallery owned the painting then. They also argued that there was no evidence of the painting being surrendered under Nazi persecution. However, in recent years, the city government softened its position and recommended the restitution of the painting to the foundation. The city council ultimately supported this recommendation.