The sprawling saga of the M. Knoedler & Co. Gallery forgery scandal is approaching a full decade since the storied gallery closed abruptly in 2011 (fuller background further below). The last pending civil suit related to the case is now headed for trial in July after the U.S. District Court denied a motion for summary judgment by the gallery’s shareholders that argued that they could not be responsible for the company’s liability. Judge Paul G. Gardephe of the Southern District of New York ruled that there were factual disputes on whether those shareholders indeed could be responsible for alter ego liability that can only be resolved at a trial. The court did award Defendant Michael Hammer summary judgment on the plaintiffs’ fraud, fraudulent concealment, aiding and abetting fraud, aiding and abetting fraudulent concealment, conspiracy to commit fraud, and conspiracy to commit fraudulent concealment, RICO, and RICO conspiracy claims.
Topics: Ann Freedman, Jackson Pollock, Robert Motherwell, Southern District of New York, RICO, Glafira Rosales, M. Knoedler & Co., Abstract Expressionist, Gardephe, piercing the corporate veil, Monsanto, Roundup, Michael Hammer, 8-31, Knoedler LLC, alter ego
One of the longest-running court cases in the United States about art looted by the Nazis has been decided in favor of the current possessor, the Thyssen-Bornemisza Museum in Madrid, an instrumentality of the Kingdom of Spain. The U.S. District Court in Los Angeles ruled on April 30, 2019 against the heirs of Lilly Cassirer, a German Jew whom the Nazis targeted in 1939 for a forced sale of Rue Saint–Honoré, après-midi, effect de pluie (1892). The ruling is the second time that the museum has prevailed in the District Court as the owner of the painting under Spanish law, now on the grounds the museum did not know of the painting’s looting history when it acquired the work and that it held the work publicly for long enough to become its owner even though it had been stolen. The ruling, while favorable to the museum in this case, confirms important principles about the inability of successive possessors to acquire good title to artworks stolen by the Nazis, and the importance of diligence and pursuing questions raised by red flags in the chain of title. Notable as well was the Court’s pointed criticism of Spain for failing to adhere to the spirit of the Washington Principles on Nazi-Confiscated Art, and Spain’s failure to “comply with its moral commitments.”
Topics: Walter Feilchenfeldt, Third Reich, Terezin Declaration, Gestapo, Lilly Cassirer, Claude Cassirer, Jacques Goudstikker, Nazi-looted art, Czechoslovakia, Spain, Washington Principles, Baron Hans-Heinrich Thyssen- Bornemisza, A Tragic Fate, Law and Ethics in the Battle Over Nazi-Looted Art, Reichskammer der bildenden Künste, flight taxes, Rue Saint–Honoré, Julius Cassirer, Paul Durand-Ruel, Ludwigstrasse, Dr. Cassirer and Co. Kabelwerke, Jakob Scheidwimmer, Sydney Schoenberg, Hahn Gallery, Thyssen-Bornemisza Museum, Military Government Law No. 59, Reich Chamber of the Visual Arts, Ari Walter Kampf, Eugen Kampf, Knoedler & Co. Gallery, encubridor
As promised, here are the details and registration information for the Responsible Art Market initiative's inaugural US event on May 23, 2019 at Columbia University. The preliminary program is below (some sponsors still pending), sign up today today to attend (free)!
Topics: Jane Levine, Switzerland, Appraisers Association of America, Suzanne Gyorgy, Sotheby's, Megan Noh, ARTnews, Art Law Centre, University of Geneva, Responsible Art Market initiative, Justine Ferland, CitiBank, PAIAM, Sarah Douglas, Birgit Kurtz, Gibbons P.C., Rebecca Fine, Athena Art Finance Corp., Pryor Cashman, Linda Selvin, Jennifer Mass, Scientific Analysis of Fine Art, LLC
After another well-attended and well-received event in Geneva in January, the Responsible Art Market Initiative is coming to New York! In coordination with the Professional Advisors to the International Art Market (PAIAM), we will be holding an afternoon seminar at Columbia University on May 23, 2019. The program and registration will be available shortly, but panels moderated by RAM Advisory Board members Justine Ferland (University of Geneva) and I will boast a stellar lineup of experts that will address questions concerning compliance and legislative developments affecting the art market, and best practices in art transaction risk management.
Debate has peaked in the last year or so about the treatment and possible restitution of so-called colonial artifacts in Western (i.e., European and North American) museums. The conversation is important for many reasons, but one interesting facet is the way in which the discussion moved from a peripheral topic to one consuming high-level government attention in a very short amount of time. In the process, institutions that have been devoted for well over a century to artistic, archeologic, and ethnographic displays have found themselves in a very public conversation about the future and even the validity of their mission. This discourse culminated last fall in a report commissioned by President Emmanuel Macron, authored by Bénédicte Savoy of France and Felwine Sarr of Senegal, recommending (among other things, as discussed below), that objects sent to France should be returned if the country of origin requests it. Germany has now joined the conversation with the announcement of a collective declaration addressed to the collection of German federal and state museums.
Topics: Berlin, ICOM, Deutsches Zentrum Kulturgutverluste, Germany, Washington Principles on Nazi-Confiscated Art, SPK, Stiftung Preussischer Kulturbesitz, International Council of Museums, 1970 UNESCO Convention, Monika Grütters, Art Law Report, Capital Requirements Regulation, Bénédicte Savoy, Felwine Sarr, Emmanuel Macron, Humboldt Forum, Unter den Linden, Stadtschloss, Frederick the Great, East Germany, Volkskammer, Collective Declaration, Dahlem, Nama, Namibia, Federal Ministry of Culture, Media, and Sport, Länder, German South West Africa, Deutsches Zentrum Kulturverluste, Ethnological Museum, Gemäldegalerie, Staatliche Museen zu Berlin, Herero
Alexander Khochinsky, the son of a Polish Jew who fled her home just steps ahead of the German invasion in 1941, was detained at Paris Charles de Gaulle Airport yesterday. The current detention parallels Poland’s previous failed attempts to extradite Khochinsky from the United States in 2015, a request that was dismissed and which led to his pending lawsuit for that retaliatory extradition attempt. Khochinsky, an art dealer, reached out to Poland about a painting, Girl with Dove, that he had inherited from his parents that looked similar to one that Poland was seeking, and asked to open a dialogue about what had happened to his mother’s home. In response, Poland charged him with a crime and asked the United States to extradite him for prosecution. The U.S. District Court in Manhattan dismissed the request for extradition in 2015, but by then Khochinsky had suffered months of detention and the destruction of his business. Khochinsky—an American citizen—was detained just before boarding his flight to New York on Monday and informed that there was an Interpol or European request for his extradition made by Poland.
Topics: Alexander Khochinsky, Red Army, "Girl with Dove", Sullivan & Worcester LLP, Poland, Molotov-Ribbentrop Pact, Przemysl, Leningrad, Paris Charles de Gaulle Airport, Hague Convention on the Service Abroad, Jean-Jacques Neuer, Polish Central Authority, USSR
Readers of the Art Law Report know that for several years running now, I have enjoyed events in Geneva organized by the Art Law Foundation and the Responsible Art Market Initiative in January/February. I am happy to report that this year is no exception. RAM is presenting its latest event “A Responsible Art Market in Practice,” to be held on Friday February 1, 2019 at the Palexpo in the venue of the artgenève fair. After joining the RAM Taskforce and contributing to its Toolkit and country guide for the US, I am pleased to be presenting one of the case studies, in between a roster of distinguished speakers and experts. I hope to see you there!
Topics: Art Law Foundation, The Art Newspaper, Geneva, artgenève, Sandrine Giroud, Lalive, Irina Tarsis, Sullivan & Worcester LLP, Suzanne Gyorgy, Georgina Adam, Nicholas M. O'Donnell, Art Law Centre, Mathilde Heaton, Jean-Bernard Schmid, Responsible Art Market initiative, Phillips, Financial Times, Palexpo, Justine Ferland, Carine Decroi, Artcurial, Philippe Davet, CitiBank, Aude Lemogne, Ochsner & associés, Roland Foord, Stephenson Harwood, Association Marché d’Art Suisse, Blondeau & Cie, Andreas Ritter
I am pleased to be speaking on a panel at the upcoming Global Auction House Summit presented by Invaluable, the leading technology partner for online auction services. I will be presenting on the issues of Managing Reputation & Risk, and look forward to a lively discussion. The conference schedule is reprinted below, and registration is available here.
Topics: Auctions, London, Melanie Gerlis, The Art Newspaper, Sullivan & Worcester LLP, Events, Sotheby's, Nicholas M. O'Donnell, Art Loss Register, Real Estate Development, Affordable Housing, Institutional Shareholder Services, Proxy Voting Policies, John Albrecht, US Trust, ARTMYN, Cuseum, Andrea Danese, Athena Art Finance, Jakob Dupont, Bruun Rasmussen Auctioneers of Fine Art, Lori Hotz, Lobus, Bas Kuiper, Sophie MacPherson, Julian Radcliffe, Global Auction House Summit, Leonard Joel, Martina Batovic, Dorotheum, Evan Beard, Anna Brady, Anthony Calnek, Brendan Ciecko, Pierre Fautrel, Obvious, Andy Foster, Phillips, Financial Times, Dr. Anna-Sophie Hollenders, Raue LLP, AMFAD, Christopher McKeogh, Gene Shapiro, Sarah Wendell Sherrill, Mary-Alice Stack, Creative United, Rob Weisberg, Invaluable, Georgina C. Winthrop, Grogan & Company, Shapiro Auctions
This fall marks the 20th anniversary of the Washington Conference on Nazi-Era Assets and the corollary Washington Principles on Nazi-confiscated Art that have driven much of the conversation since then. Apollo magazine published my thoughts on the impact of the Washington Principles, which I reproduce below (British spelling, thank you), as well as a thoughtful piece by Martin P. Levy (a member of the UK Spoliation Advisory Panel, one of the commissions created in response to the Washington Principles).
Topics: Nazi-looted art, SPK, Advisory Commission, Stiftung Preussischer Kulturbesitz, Washington Principles, HEAR Act, UK Spoliation Advisory Panel, Apollo Magazine, Holocaust Expropriated Art Recovery Act of 2016, Washington Conference on Nazi-Era Assets, Department for Digital, Culture, Media and Sport, National Gallery in London, Claims Conference, JUST Act