A court here on Wednesday issued a ruling that permits the Solomon R. Guggenheim Foundation to display art as it sees fit in the Venetian palazzo given to it by the wealthy collector Peggy Guggenheim.

In a 16-page decision, the Paris tribunal rejected legal claims made by a group of her descendants that the foundation was bound to display Guggenheim’s vast collection of modern art the way she had originally presented it in her home.

Her family — seven grandsons and great-grandsons based in France — vowed to appeal after the tribunal dismissed their demands to revoke Guggenheim’s donation to the foundation unless the displays of Cubist, Surrealist and abstract postwar art were returned to their original state without additions of contemporary works.