The Grossman team has obtained yet another favorable ruling in a long-running, multilateral dispute over a Basquiat masterpiece tied to convicted art dealer Inigo Philbrick’s fraudulent schemes. 
 
Since the case was filed in 2020, we have litigated a number of cases arising out of this scandal, including on behalf of a collector who purchased full title to this Basquiat painting and agreed to work with Philbrick to resell it. Unbeknownst to our client, however, Philbrick secretly pledged the work as collateral to obtain a loan for his own benefit from Athena Art Finance.  Once Philbrick’s fraud was revealed, Athena refused to return the artwork, and instead filed suit seeking permission to “unilaterally” sell the work to satisfy its debt.
 
In late 2024, we achieved a major win on summary judgment, which the federal court then upheld despite Athena’s multiple motions challenging the ruling.  Having concluded that our client alone holds legal title, the court ordered Athena to turn over physical possession of the masterpiece.  But Athena continued its campaign to keep the work, asking the federal district court to issue a “stay” of its own judgment and arguing that Athena should be permitted to hold onto the Basquiat while it appeals its loss to the Second Circuit Court of Appeals.  The district court once again denied Athena’s request.  Athena then turned to the Second Circuit seeking a stay of the judgment there, again arguing that it should be allowed to keep the painting while it pursues its appeal. 
 
After the parties submitted briefs addressing Athena’s requested stay, the Second Circuit this week flatly denied Athena’s motion.  The very brief order—just two sentences plus two case citations—means that our client can retain possession of the Basquiat while Athena’s appeal unfolds.