Art Law Day at the Appraisers Association of America’s annual conference is now less than a month away. Held at the NYU Kimmel Center, this year’s event will be held on Friday November 7, 2014. Sullivan & Worcester LLP is excited to be a Friend of Art Law Day this year.
Rep. Jerrold Nadler, American Royalties, Too Act Sponsor, Added to Speakers at Appraisers Association of America Art Law Day on November 7, 2014 at NYU
Topics: Legislation, The Changing Laws for the Sale of Endangered Speci, Monica Kreshik, NYU SCPS, International Director of Restitution, The Frick Collection, miGavel Auctions/Lark Mason Associates, Resale Royalties, Pollock-Krasner Foundation, Betty Krulik Fine Art Limited, American Royalties Too Act, Michael McCullough, Pearlstein & McCullough LLP, authentication, IRS/Tax Free Exchange, Richard Levin, New York University, American Alliance of Museums, Suzanne Goldstein Baker, U.S. Fish & Wildlife Service, Cravath Swaine & Moore LLP, Art Law Day, Department of Environmental Conservation, Ulf Biscof, New Legislation for Authentication Experts, Baker Tilly Virchow Krause LLP, Christie's, Appraisal, Detroit Institute of Arts, Amy Goldrich, Betty Krulik, Restitution, Randi Schuster, Events, Christopher Marinello Art Recovery International L, Cahill Partners LLP, Elizabeth von Habsburg Winston Art Group, Monica Dugot, Appraisers Association of America, Marianne Rosenberg, Terry Shtob, Ford W. Bell, Craig Hoover, Bankruptcy and the Detroit Institute of Arts, Lark Mason, Kimmel Center, Wildlife Trade and Conservation Branch, Detroit Bankruptcy, Diane Wierbicki, Investment Property Exchange Services, Samuel Sachs II, Biscof & Paetow Rechtsanwälte, Withers Bergman LLP, Judith Bresler, Paul Rosenberg
New Sullivan & Worcester LLP Advisory on Fine Arts Consignment
Sullivan & Worcester LLP's Art and Museum Law Group has published an important new client advisory about Massachusetts's fine arts consignment statute, G.L. c. 104A. With the recent decision in Plumb v. Casey et al. by the Supreme Judicial Court, it is more important than ever to understand what the law requires and provides. Certainly if a transaction has any connection to Massachusetts (whether through buyer, seller, agent, estate executor, etc.), or even if it is just in a state with a consignment statute whose courts may look to this opinion for guidance, we hope our readers will find the advisory helpful.
Topics: Legislation, consignment, Commonwealth of Massachusetts, Supreme Judicial Court, SJC, Bankruptcy Court, Sullivan & Worcester LLP, consignor, G.L. c. 104A § 2, Art and Museum Law Group, G.L. c. 104A § 1, U.C.C.-1 statement, U.C.C. Secretary of State, Plumb v. Casey, Chapter 7, Uniform Commercial Code
Have Some Foie Gras with Your Ethanol: Auction Houses Urge Ninth Circuit Not to Rehear California Resale Royalties Act Argument
The defendants in the case on appeal over the constitutionality of California’s Resale Royalty Act have just briefed the court’s question about whether the full court should rehear the case. Responding to an order that the parties explain whether the case conflicts with recent Ninth Circuit precedent, Christie’s, Sotheby’s, and eBay all argued emphatically that no conflict justifies reinstating the law that a District Court struck down in 2012.
Topics: Legislation, Foie Gras, Resale Royalties, 538 U.S. 644, N. Randy Smith, 729 F.3d 937, Auction Houses, California Health & Safety Code § 25982, Chuck Close, 730 F.3d 1070, Moral Rights, Commerce Clause, Affordable Care Act, Innocence of Muslims, Ass’n des Eleveurs de Canards et d’Oies du Quebec, Judge Jacqueline H. Nguyen, Christie's, Research & Mfrs. of Am. v. Walsh, California Resale Royalties Act, Ethanol, Dormant Commerce Clause, 491 U.S. 324, U.S. Constitution, Copyright, royalties, Garcia, Ninth Circuit, Cal. Code Regs. tit. 17 §§ 95480–90, Sotheby's, Rocky Mountain Farmers Union v. Corey, Healy v. Beer Inst., Ferdinand F. Fernandez, eBay, Google, Low Carbon Fuel Standard, Mary H. Murguia
Books of Note: "The Art Collecting Legal Handbook" Reviewed
In the course of our work here, I like to call out books and articles that I feel are worthy of praise, usually the in the course of a particular post or issue. After a too-long stay on the corner of my desk awaiting time to read it, I finally finished a book published last year that should be an essential for any collector, or lawyer dealing with clients across borders. Entitled The Art Collecting Legal Handbook (Thomson Reuters), the book is edited by Bruno Boesch and Massimo Sterpi, both notable European practitioners in art and cultural affairs law, at Froriep in London and Studio Legale Jacobacci & Associati in Rome, respectively.
Topics: Legislation, the Middle East, looted property, Forgery, Auctions, VAT, Studio Legale Jacobacci & Associati, authenticity, London, Sam Keller, Julien Anfruns, droite de suite, Froriep, Moral Rights, Europe, North America, Holocaust claims, California, Fondation Beyeler, Howard Kennedy FSI, Thomson Reuters, Asia, Rome, Restitution, International Council of Museums, Massimo Sterpi, United States, World War II, Sabina von Arx, 1970 UNESCO Convention, Morgan Stanley, Art Fairs, Publications, Litigation, due diligence, Immunity from Seizure Act, Museums, Bruno Boesch, 1995 UNIDROIT Convention on Stolen or Illegally Ex, Daniel McClean, New York
Massachusetts High Court Clarifies: Written Agreement Not Required to Create Consignment of Fine Art and its Resulting Trust Duties
The Supreme Judicial Court, the high court of the Commonwealth of Massachusetts, has answered a certified question from the Bankruptcy Court about the interpretation of Massachusetts’s fine art consignment law, G.L. c. 104A. The case, Eve Plumb et al. v. Debra Casey, SJC-11519, originated with an art dealer’s bankruptcy and the claim by the trustee in that bankruptcy that the artwork in the dealer’s possession belonged to that bankrupt dealer, not the artists. The SJC has interpreted the 2006 amendments to the law for the first time and clarified the roles of everyone involved. In full disclosure, I did some work for two of the artists (Dylan Stark and Robert Stark) at an early phase of the Bankruptcy Court proceedings. Eve Plumb, now an artist but also well known as the actress who played Jan Brady on The Brady Bunch, was another of the artist-claimants. In sum, once an artist delivers a work of art for sale for the purpose of exhibition or sale, it is a consignment, and the seller/consignee holds it in trust for the artist, regardless of the consignee’s own circumstances.
Topics: Legislation, consignment, United States Supreme Court, The Brady Bunch, Jan Brady, Allyson Wynne, Commonwealth of Massachusetts, Debora Casey, Supreme Judicial Court, SJC, Bankruptcy, Wynne Fine Art Inc., Eve Plumb, Bankruptcy Court, consignor, G.L. c. 104A § 2, Kenneth Wynne III, G.L. c. 104A § 1, U.C.C.-1 statement, U.C.C. Secretary of State, Chatham, Chapter 7, Uniform Commercial Code, certified question, Dylan Stark, Robert Stark, Eve Plumb et al. v. Debra Casey, Jim Grace, SJC-11519, Arts and Business Council
Legislative Update: HR 4103, the “American Royalties Too Act” to be Considered Next Week, Gains Sponsors
On February 26, 2014, Representative Jerrold Nadler (D-NY) introduced the “American Royalties Too Act”—House Resolution 4103. HR 4103 was referred to the House Subcommittee on Courts, Intellectual Property, and the Internet on March 20, 2014. There was also an “American Royalties Too Act” introduced in the U.S. Senate by Senator Tammy Baldwin (D-WI) on the same day.
Topics: Legislation, Resale Royalties, Wm. Lacy Clay (D-MO), Maxine Waters (D-CA), American Royalties Too Act, Chuck Close, Christopher Rauschenberg, droite de suite, Commerce Clause, Julia Halperin, Jerrold Nadler (D-NY), The Art Newspaper, U.S. Senate, Judy Chu (D-CA), HR4103, Louise McIntosh Slaughter (D-NY), Christie's, Ed Pastor(D-AZ), Huffington Post, Intellectual Property and the Internet, Eliot L. Engel([D-NY), Robert Rauschenberg, Mark Pocan (D-WI), Theodore E. Deutch (D-FL), James Moran (D-VA), Senator Tammy Baldwin (D-WI), Copyright, Sotheby's, John Lewis (D-GA), and Sheila Jackson Lee (D-TX), Janice Schakowsky (D-IL), House Subcommittee on Courts, Donna M. Christensen, eBay, Sam Farr (D-CA)
Reactions to Jenack Decision Are Surprisingly Limited So Far
Since the Court of Appeals’ decision in William J. Jenack Estate Appraisers and Auctioneers, Inc. v. Albert Rabizadeh was released on Tuesday (a decision that the New York Times noted was “first reported by the Art Law Report blog”), reactions have started to come in to the decision. Somewhat surprisingly, they have thus far been relatively few in number. On the whole, few seem exercised about the decision, and no one is gloating, probably because it restores the age-old status quo to which everyone had become accustomed.
Topics: Legislation, consignment, New York General Obligations Law § 5-701(a)(6), Appellate Division, Auctions, New York Court of Appeals, Ivan Petrovich Khlebnikov, agency, Inc. v. Albert Rabizadeh, New York Supreme Court, Hicks v. Whitmore, Morris Cohon & Co. v. Russell, disclosure, Statute of Frauds, anonymous seller, identity, auction, William J. Jenack Estate Appraisers and Auctioneer
Jenack v. Rabidazeh Decision Reversed: Auction Sellers and Consignors Can Remain Anonymous
The New York Court of Appeals reversed this morning the decision in Jenack v. Rabidazeh last fall by the Appellate Division of the New York Supreme Court that had held that an auctioneer must disclose the name of the actual owner who has consigned the work, to enforce that sale consistent with the state’s Statute of Frauds. The court concluded that “there exists sufficient documentation of a statutorily adequate writing” such that the Statute of Frauds was satisfied and the agreement is enforceable against Albert Rabizadeh, the winning auction bidder. The result is a sensible one both for stability in the market—the most important jurisdiction in the United States for that—as well as for anyone concerned about provenance and smuggling, as counterintuitive as that might initially appear. The decision is William J. Jenack Estate Appraisers and Auctioneers, Inc. v. Albert Rabizadeh (still unpublished).
Topics: Legislation, consignment, New York General Obligations Law § 5-701(a)(6), Appellate Division, Auctions, New York Court of Appeals, Ivan Petrovich Khlebnikov, agency, Inc. v. Albert Rabizadeh, New York Supreme Court, Hicks v. Whitmore, Morris Cohon & Co. v. Russell, disclosure, Statute of Frauds, anonymous seller, identity, auction, William J. Jenack Estate Appraisers and Auctioneer
The Auctioneer is the Agent of the Seller in Every Auction: Buyer Gets the Better of Argument in Jenack Appeal Oral Argument. Are Auction Houses Ready if Result Stands?
The New York Court of Appeals held oral argument last week in the appeal from the Appellate Division of the New York Supreme Court’s ruling in Jenack v. Rabizadeh that an auctioneer must disclose the name of any owner who has consigned the work for sale, or a sale against a successful bidder cannot be enforced consistent with New York General Obligations law § 5-701, the New York Statute of Frauds (video in Windows Player). The court actively questioned both sides before taking the case under advisement. The view here is that the buyer (Rabizadeh) got the better of the argument, but one has to wonder how the equities will weigh on the court in a case where the winning bidder simply repudiated a voluntary transaction.
Topics: Legislation, New York General Obligations Law § 5-701, § 5-701(a)(6), Auctions, Jenack v. Rabizadeh, New York Court of Appeals, Ivan Petrovich Khlebnikov, Fine Russian Silver/Enamel Covered Box with Gilt I, New York Supreme Court, Chester, Statute of Frauds, 12 Wend. 548, William J. Jenack, Uniform Commercial Code, Hicks v. Wigmore
Proposed Legislation in New York Would Help Shield Authentication Experts from Liability
At Friday's Art Law Day at the annual meeting of the Appraisers Association of America, Judith Bresler gave the keynote address on the topic of the complications created by prosective liability for authentication experts. As prominent cases ranging from the Knoedler forgeries to the decision by the Warhol Foundation and others to cease authenticating works have shown, the opinion of experts as to whether a work of art is indeed by a particular artist is a recurring and important issue. Not only do transactions worth tens of millions of dollars rest on that authentication, absent a robust exchange of opinions about authorship, frauds and forgeries are actually encouraged. As it stands, many qualified authenticators and experts have simply judged that giving an opinion is too great a risk to facing a defamation, fraud, or negligence claim, on which they will usually prevail but only after great expense. As Bresler said, “when authenticators are afraid to practice their profession, it has a far reaching effect.”
Topics: Legislation, Knoedler, authentication, Knoedler forgeries, Warhol Foundation, Art Law Day, Appraisal, Appraisers Association of America, New York City Bar Association, Judith Bresler