Marei von Saher of Greenwich sued in 2007 claiming she was the rightful owner of a pair of 16th Century wood panels painted by famed German artist Lucas Cranach the Elder.
But a trial court in Los Angeles tossed out the case, ruling unconstitutional a California law extending the statute of limitations for heirs of Holocaust victims.
The 9th U.S. Circuit Court of Appeals agreed with that holding Wednesday, but said von Saher may have another legal avenue. It says the lawsuit may proceed if von Saher can prove she inherited the art before the statute of limitations expired under another state law not related to Holocaust survivors.