The judge limited the extent of the lawsuit, dismissing claims on 11 paintings out of more than 40 under contention.
The collection of Baron Mor Lipot Herzog included paintings by Renaissance artist El Greco and Spanish painter Francisco de Zurbaran.
David de Csepel, Herzog's great grandson, and two other heirs sued Hungary and several state-owned museums seeking the return of works that included paintings by same pair of artists.
Herzog died in 1934. His collection, which at its zenith may have grown to as many as 2,500 objects and numerous paintings from the Old Masters, including 10 by El Greco, was inherited by his three children after his wife's death in 1940.
Some of materpieces taken by Eichmann
With the onset of World War II and the persecution of the Herzogs and other Jews, the collection began to be dismantled. Some artworks were taken by the Nazis and Russia's Red Army. Others may have been stolen, and some were seized by Hungary's former communist government.
According to experts, Adolf Eichmann, who oversaw the deportation of more than 400,000 Hungarian Jews to Auschwitz and other concentration camps, took some of the masterpieces for his own collection.
A 16th century portrait by German painter and engraver Georg Pencz of businessman Sigismund Baldinger, which was restituted by Germany to Herzog's heirs last year, was sold in July at a Christie's auction for 5 million British pounds (then $8.56 million).
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