Since the outbreak of COVID-19 and the ensuing restrictions on businesses, there has been much discussion about whether, when, and how commercial tenants can break their leases or be relieved from rent-payment obligations when they are unable to conduct business on leased premises.  Last week, a Manhattan art gallery sued its landlord for declaring a default under the lease when the gallery failed to make its April rent payment, arguing that the lease was lawfully terminated on April 1 in light of the executive orders that restrict the operation of New York’s non-essential businesses.  

Abstract artist Howardena Pindell has sued several individuals and entities related to the G.R. N’Namdi Galleries, which, beginning in the late 1980s, represented her work in spaces located in Detroit, Chicago, New York, and Miami.  The case raises a host of legal issues that are, unfortunately, all too common in the realm of artist-gallery relationships.

This week, Grossman LLP notched an initial victory on behalf of its client, art advisor Susan Seidel, who is in litigation with art collector and Universal Studios executive Ronald Meyer over a 2001 art deal.  The Manhattan-based team, aided by its California local counsel, persuaded a federal judge that the lawsuit should proceed in New York, not in Meyer’s chosen forum of California.  The ruling is a reminder that the question of where an art dispute should be litigated can be an important one, and that a plaintiff’s preference may not always prevail.

A recent trademark decision in the Southern District of New York has extended First Amendment protections generally reserved for works of art to the popular video game  “Call of Duty.”  Analyzing video games as expressive works for purposes of federal trademark claims has widespread legal implications for video game manufacturers and distributors, allowing them an important shield against allegations of trademark infringement.

Amidst the social and economic fallout of the COVID-19 pandemic, the Association of Art Museum Directors (AAMD) has temporarily revised the guidelines it imposes on its members.  Recognizing that museums (like many other art-related businesses) are struggling to stay afloat, the AAMD is easing certain restrictions on the use of trusts, donations, and gains from endowment investments, and on the use of proceeds from deaccessioning artworks.  

Netflix’s “Tiger King” has become one of the streaming service’s most popular series in the last few weeks, documenting the years-long fight between Joe Exotic (né Schreibvogel), the self-proclaimed “Tiger King,” and Carole Baskin, founder and CEO of Big Cat Rescue Corp. (“Big Cat Rescue”).  The feud led to three separate intellectual-property lawsuits that bankrupted Exotic and serve as a cautionary tale as to how competitive antics can have severe legal consequences.

A recent federal court decision provides some insight into how U.S. copyright law might apply to the unique medium of tattoo art.  

Last week, in response to the COVID-19 pandemic, the Internet Archive launched the National Emergency Library, a digital collection of 1.4 million books that can be accessed by unlimited users for free.  However, despite the decidedly noble mission, some authors and their advocates are bemoaning the potential negative consequences such a project may have on struggling authors who rely on copyright protection.  We, like many in the art world, will be paying attention to how this tension plays out, because copyright issues—regardless of genre—often have important implications for all art mediums.

​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.