​In the few short weeks since our last post in this space, the world has changed in staggering ways.  The COVID-19 pandemic has wreaked havoc on governments, businesses, economies, markets, communities, and most importantly, countless families and lives. 
 
The current crisis has also profoundly impacted the larger art world.  We do not claim to have any special powers to predict the future of the art market, particularly in the face of this unprecedented crisis. But as seasoned litigators with years of experience in art law, here are a few thoughts about what we may see in the coming months in the realm of art disputes, as the ramifications of this pandemic continue to unfold.

We’ve been following the 5Pointz case since its inception, through summary judgment, a trial, an advisory jury verdict for the plaintiffs, and a decision by federal district judge Frederic Block, who issued an award of $6.75 million (and later declined to reconsider that award).  Now, three federal appellate judges from the Second Circuit have weighed in, unanimously upholding Judge Block’s award and his reasoning in this groundbreaking case regarding graffiti art.

Last summer, Grossman LLP was pleased to announce a major victory in an important lawsuit arising out of the massive Chowaiki scandal.  And today, just several weeks after Judd Grossman argued the appeal in the First Department Appellate Division, that ruling has been upheld, paving the way for efforts to recover the Chagall painting.

This week, a federal court handed a decisive victory to the Helwaser Gallery and its owner, Antoine Helwaser, in a long-running dispute over a sculpture by famed artist Alexander Calder.  The summary judgment decision, penned by Judge P. Kevin Castel of the Southern District of New York, overwhelmingly accepted the arguments advanced by Grossman LLP on behalf of Helwaser. 

In late 2019, the House of Representatives passed, with a rare show of bipartisan support, a bill that seeks to create what some have described as a small-claims court for copyright litigants.  The bill has now been sent to the Senate; if approved by the Senate and signed by the President, it would create an alternative forum for some types of copyright claims.

In late December, a New York state court granted summary judgment in a dispute over an art deal that fell apart.  The decision is likely to be of interest to many dealers and collectors, as it addresses important contract and agency law issues, against a backdrop of dynamics that are not uncommon in art transactions. 

On January 1, a new cache of literature, music and art became part of the public domain as another year of copyright protection expired.  Until 1998, most works created before 1978 were protected under U.S. copyright law for 75 years after creation.  But in 1998, with the passage of the Sonny Bono Copyright Extension Act, copyright protection of these older works was extended an additional 20 years, meaning that no additional works would again join the public domain until 2019.  Now, at the start of each year, creative works produced more than 95 years prior become available for public use and enjoyment.

As the new year begins, we write with some brief updates on two significant stories we’ve been following for some time.  One involves the ongoing issues arising out of the discovery of several forged Old Master works on the European art market.  The other involves a bitter, globe-spanning feud between a mega-collector and his onetime dealer.  And both of these complex situations will continue to reverberate throughout the art ecosystem.

The statue, titled Fearless Girl, created a sensation when it was first unveiled on International Women’s Day in 2017 in New York City.  It depicts a small girl standing defiantly, hands on hips; her placement at Bowling Green in lower Manhattan created the appearance that she was staring down the famous Wall Street charging bull statue.  The city originally permitted the statue to be installed at Bowling Green for a month, but then allowed the statue to be moved to a longer-term location outside the New York Stock Exchange.  State Street Global Advisors, a financial asset management company, says it commissioned and owns the statue, and has made her a prominent symbol of what State Street says is its ongoing commitment to ensuring gender diversity on corporate boards.  But State Street is now embroiled in litigation with the artist who created the statue, Kristen Visbal.  The legal questions involved in the case serve as a case study about the complex issues that can arise with commissioned and public art projects.

This fall has seen developments in two cases we’ve been following.  Each case raises unique substantive legal issues, but the recent developments also serve to highlight the costs and complexity of litigating art disputes in court.

​The scandal surrounding troubled art dealer Inigo Philbrick is heating up. A British judge has issued an order to freeze millions of dollars worth of his assets in the wake of several lawsuits alleging that he is improperly holding or has sold major artworks that don’t belong to him.

The artwork at the center of a lawsuit against dealer Inigo Philbrick now has new claims that complicate a story that includes accusations of a fake auction guarantee. In a lawsuit filed last week with the Supreme Court of New York, Guzzini Properties, Ltd., a company that collects art, claimed ownership of the work against competing claims from Aleksandar Pesko, whose company is Satfinance Investment Ltd. and Germany’s Fine Art Partners. 

A trial is now imminent in a years-long, trans-Atlantic dispute over who is the rightful owner of a massive diamond.  The case, Angiolillo v. Christie’s et al. (Case No. 650871/2015, N.Y. Co.) is of interest to the art world because it implicates some of the same themes that often crop up in art title cases—questions ranging from whether a claimant has unreasonably delayed in asserting its rights, to how much an auction house is required to do to verify the title of an item it plans to auction.

A legal battle that has spanned decades and continents has finally been resolved in a California federal court.  Last month, the Northern District of California granted partial summary judgment in favor of Alan Wofsy on copyright-infringement claims stemming from his use of certain copyrighted photographs in his comprehensive reference catalogue of Picasso’s work, holding that Wofsy’s project constitutes “fair use.”

We’ve written before about the ongoing conversation—not just in the art world, but in the courts—regarding how American copyright law should apply to the unique art form of graffiti.  In this post, we review some recent developments that may add to that conversation.
 

We wrote last year about a suit filed in New York state court (see No. 651889/2018, N.Y. Co.) by a disgruntled art collector seeking redress for the problems he has allegedly encountered in trying to purchase three sculptures by famed artist Jeff Koons.  Last month, a court ruled that the collector’s claims can proceed to the next phase of litigation.

This summer, a New York Supreme Court judge threw out another complaint filed in a long-running legal battle between London art dealer James Mayor’s gallery and members of the Agnes Martin catalogue raisonné committee, providing further comfort for art authenticators who may face litigation in retaliation for their opinions.

An arbitrator recently ordered a sister company of auction giant Christie’s to pay nearly $1.8 million in damages to another auction house, Heritage Auctions, based on Heritage’s claims related to alleged theft of its auction data.  The case serves as a reminder that art businesses depend on information, and may need to consider how they should collect, protect, and appropriately use valuable confidential data.

More than a year has passed since New York dealer Ezra Chowaiki pled guilty to federal charges related to his misconduct in cheating numerous clients in fraudulent art deals.  But the legal fallout continues.  Many of his victims and business associates have asserted claims (for money or art) in connection with the bankruptcy of his gallery, Chowaiki & Co., as well as in federal forfeiture proceedings that allow claimants to assert their rights to artworks ordered forfeited to the government as part of Chowaiki’s guilty plea.