​A contentious lawsuit is underway between a Manhattan art gallery and its former director over her handling of purportedly-confidential information when she quit her job to accept a position at another gallery.  The case raises potentially important questions about one of the key assets of any art business—information about its customers and contacts. 

​One artist’s crusade against what he perceives to be anticompetitive behavior in the New York art world has come to an end—at least for now—as a federal judge dismissed his antitrust claims against five museums.

Canadian art gallery Equinox Gallery Limited (“Equinox”) will be allowed to move forward with its lawsuit against art dealer Fred Dorfman following a favorable decision from a federal judge this week.  Grossman LLP is representing Equinox in the case.
 

A lawsuit filed in Manhattan federal district court last week reveals how Bernard Madoff’s nearly decade-old Ponzi scheme continues to reverberate, even in the art world.

Famed artist Richard Prince is no stranger to litigation; over the years, he’s been sued by multiple plaintiffs whose art he has incorporated into his own “appropriation art” works.  A few years ago, he was the defendant in the Cariou v. Prince case, which resulted in an important Second Circuit Opinion about the fair-use defense to copyright infringement.

We have continuously followed stories in the news and in the courts about the continuing efforts of the art market to deal with the problem of forgeries.  From the Knoedler scandal to the concerns about counterfeit Old Masters being peddled on the European market, this issue is clearly not going away anytime soon.  Today, we take note of developments in three more cases that shine a spotlight on this ongoing challenge.

New York gallery owner Alex Komolov has emerged victorious in litigation against antiques dealer Jack Shaoul arising out of the sale of a fake Renoir. Komolov, owner of the Alskom Gallery, sued Shaoul in 2013 for unjust enrichment, conversion, and fraudulent misrepresentation, claiming that the dealer sold him a forged Renoir painting for $1.1million in 2010. After trial, a jury awarded Komolov the full purchase price plus interest. According to Komolov’s attorney, Shaoul previously served 40 months in prison for mail and wire fraud and conspiracy, including misattribution of a painting.

A recent conference in Geneva reflects an attempt by private art-market actors to raise awareness and address the problems of illicit trafficking of art and antiquities.  While such illegal activity in the art market is hardly limited to Switzerland, the nation’s freeports and custom-free zones make it particularly vulnerable to attempts to circumvent international laws.  And the Geneva Freeport specifically is reeling from recent negative publicity—including the feud between Yves Bouvier and Dmitry Rybolovlev, the discovery of an allegedly Nazi-looted Modigliani painting, and the seizure of looted Syrian antiquities. 

Andrew Hall, a hedge-fund manager and art collector, filed suit against Lorettann Gascard, a former art-history professor at Franklin Pierce University, and her son, Nikolas, alleging that the Gascards sold him twenty-four artworks by the famed artist Leon Golub that actually were forgeries. The Gascards are now firing back that Hall alone should be held responsible for his failure to conduct adequate pre-sale diligence; a common refrain among accused fraudsters looking to cast blame back on sophisticated art collectors, like Hall.

Richard Prince is no stranger to controversy; indeed, it’s arguably an essential element of his art.  We’ve written in recent years about several copyright infringement cases against Prince involving his practice of “appropriation” of others’ artworks as part of his own.

Richard Prince has had a busy year on the litigation front. We’ve previously written about the copyright claims photographer Donald Graham filed last winter against Prince and the Gagosian Gallery over Prince’s use of Instagram images in his 2014-15 “New Portraits” exhibition. A motion to dismiss that case on fair use grounds is currently pending.

Over the summer, we reported on a lawsuit against the David Zwirner Gallery filed by a disgruntled collector who had paid $2 million for a Jeff Koons sculpture that the gallery never delivered.  This week, a New York state court rejected Zwirner’s attempt to dismiss the suit; allowing several of the claims against Zwirner to proceed.

This blog—like the rest of the art world—has closely followed the legal developments that continue to unfold in the wake of the Knoedler scandal, which exploded in 2011 when one of New York’s oldest art galleries closed following revelations that it had sold dozens of artworks (over the course more than a decade, in deals totaling about $60 million)—purported to be by Rothko, Pollock, Motherwell, and other famed Abstract Expressionists—that later turned out to be forgeries.

An art investor has initiated legal proceedings in New York state court against a Manhattan gallery she says she “trusted and relied upon” to select artworks as investments, claiming that she now has reason to question key details (like authenticity and purchase price) of several transactions with the gallery.  As is all too common, the parties apparently engaged in multiple art deals—here, involving over a hundred works, over the course of several years—with minimal documentation.  And now that their relationship has deteriorated, a court may have the difficult task of adjudicating the dispute without a written contract in place to guide its analysis.

Spanish pop artist Antonio De Felipe, sometimes referred to as the “Spanish Andy Warhol,” is under fire due to accusations by his former studio assistant that he is selling her works as his own.  Fumiko Negishi, an artist who worked as De Felipe’s studio assistant from 2006 to February of this year, has brought a lawsuit against him claiming that she painted 221 canvases signed by De Felipe.

A disgruntled client’s claims against the Elliot Stevens Gallery and its executive are headed to trial this fall in a dispute involving the client’s purchase of a group of sculptures.

Earlier this summer, a heated dispute erupted between a Manhattan gallerist and a private art advisory business, in a case that raises issues regarding the roles of galleries and advisors at the high end of the art market.

Back in August, the New York Times ran a story about a heated dispute between actor Alec Baldwin and gallerist Mary Boone over a painting by Ross Bleckner.  Baldwin has now commenced a lawsuit in New York state court against Boone and her eponymous gallery, claiming that she defrauded him into buying a different version of the painting he wanted.  See Docket No. 654807/2016 (Sup. Ct. N.Y. Co.).

The spotlight once again is focused on questions concerning the appropriate level of pre-sale diligence in art transactions, this time with allegations against the National Gallery in London.  On Tuesday, the heirs of Margarete “Greta” Moll brought suit against The National Gallery of Art seeking to recover a painting by Henri Matisse, Portrait of Greta Moll, allegedly lost in the aftermath of World War II.  Williams v. The National Gallery of Art, London, et al., Case No. 16-cv-06978.

Real-estate developer and art collector Michael Shvo has been indicted in an alleged tax-evasion scheme relating to fine-art purchases. Shvo allegedly participated in a scheme to evade over $1 million in state and local sales tax associated with the purchase of fine art and other luxury items, according to a press release from the Manhattan District Attorney’s Office, by falsely representing to art galleries and auction houses that his purchases would be shipped out of state, when they were actually shipped to his New York addresses.