In a decision watched closely by restitution experts, a court in Amsterdam has ruled that the Stedelijk Museum can retain a Wassily Kandinsky painting that it acquired during WWII from a Jewish collection.

The 1909 work, “Painting With Houses,” has been the focus of a restitution battle that has been viewed as a litmus test for Dutch restitutions policy. Critics of the Netherlands’ approach say the case represents an attempt by the Dutch to weigh the interests of its museums over justice for the victims of Nazi looting and their heirs.

The pre-war owners of the Kandinsky were a Jewish couple, Robert Lowenstein and Irma Klein. Alex Hagedorn, the Dutch lawyer representing the claimants, said he would appeal the decision.