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In November 2012, two members of the Metropolitan Museum of Art in New York sued the institution for deceiving the public by making patrons think that the suggested admission fees are mandatory. The historically free institution suggests entry fees of $25 for adults and less for seniors and students.

Theodore Grunewald and Patricia Nicholson files the suit in state court in Manhattan and said that the museum’s fee policy lacks transparency. They also argued that the museum fails to note that the fee is suggested on several of its websites and that it’s only in fine and barely legible print on signs near cash registers. A statute was put in place in 1893 declaring that the Met must remain free in order to continue receiving government funding. Grunewald and Nicholson commissioned a survey of visitors to the museum and found that 85% of patrons believed they had to pay to gain entry.

According to court papers filed by Gerald Lee Jones, who worked at the Met as a floor manager from 2007 until 2011, cashiers were trained to deceive visitors and they were paid in part based on how much they collected from admission fees. The statement, which was filed in late June 2013, also suggested that cashiers were instructed to never volunteer that patrons may pay less than the “recommended” fee.

During the year ending in June 2012, the Met brought in $37.8 million in admissions, about 16% of the museum’s revenue.

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Pablo Picasso’s Paris studio where he painted the iconic Guernica in 1937 is at the center of a legal battle. The cultural group The National Committee for Artistic Education (CNEA) has been using the historic loft as its headquarters since 2002 but a French court is considering evicting the committee.

Founded in 1966, CNEA promotes arts education in schools and was given the space by Paris’ Chambre des Huissiers de Justice. As property prices in the artsy Saint-Germain-des Prés soar, the Chambre could make a considerable profit from the loft.

Besides being Picasso’s home and studio from 1936 to 1955, No. 7 Rue Grands-Augustins was the setting of a Honore de Balzac short story, the first home of Jean-Louis Barrault’s theatre company and a popular meeting place for Jean-Paul Sartre, George Bataille and Jean Cocteau. CNEA has hosted over 700 events at the loft.

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When Merton Simpson (1928-2013), a collector and dealer of African tribal art, passed away on March 9, 2013 he left behind a collection of museum-quality works said to be worth millions. Despite his illustrious holdings, Simpson’s family did not have enough money to give him a proper burial and his body is currently being held in a funeral home in Charleston, SC. Simpson’s son, Merton Simpson Jr., has started an email campaign asking friends of his father for contributions so that a proper funeral can be arranged.  

Simpson’s care and art collection have been continuously prickly issues for his family with accusations of mismanagement and exploitation flying freely. Simpson, a celebrated abstract expressionist painter, was a pioneering champion of African art in the United States. Sadly, his remarkable archive and renowned collection have become a source of conflict between his friends, family, and staff members and most of his holdings are being detained in the Manhattan gallery, which he owned.

A will from 2011 was filed in Manhattan last week for Simpson naming his son, Merton Jr., as an executor and dividing most of his assets between his two sons, his brother, and a nephew. Simpson’s family is still waiting for the court to deem the 2011 will legally valid and to name an executor.    

Published in News
Thursday, 14 March 2013 15:24

Twombly Foundation Involved in Multiple Lawsuits

When the influential American painter Cy Twombly (1928-2011) passed away two years ago, he left the bulk of his artwork and millions of dollars in cash to the Cy Twombly Foundation of New York. The wealth of money and art passed from a trust to the foundation, which is devoted to protecting and promoting Twombly’s legacy. The Cy Twombly Foundation now finds itself embroiled in a lawsuit that was filed on Wednesday, March 13, 2013 in a Delaware state court.

The lawsuit claims that Thomas H. Saliba, one of the four individuals in charge of the foundation, took over $300,000 in unauthorized fees for investment services and assisted another foundation director, attorney Ralph E. Lerner, in pocketing funds. The claim was filed by Nicola Del Roscia, Twombly’s companion and the foundation’s president, and Julie Sylvester, a curator, Twombly expert, and the foundation’s vice president. Roscia and Sylvester also assert that Lerner and Saliba inflated the value of Twombly’s works in order to pad commissions for their own financial gain. Lerner and Saliba have refused to disclose their trustee commissions, making it impossible to determine the extent of their wrongdoing.

The recent lawsuit comes a month after Lerner asked the same Delaware court to appoint Twombly’s son, Alessandro, as a fifth board member in order to break the stalemate over the dispute. Roscia and Sylvester stated in recent court filings that Lerner’s request was an attempt to outmaneuver them. Roscia and Sylvester claim that Lerner hoped to bring Alessandro, the third trustee of Twombly’s trust, on board to help cover up Saliba’s wrongdoing.

While Twombly is a powerful force in the art market, highly inflating the prices of his work could prove dangerous for the foundation by creating confusion about the true value of his art and in turn destabilizing the Twombly market.

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United States authorities have seized over 2,200 pieces of art by pioneering American photographers including Alfred Stieglitz (1864-1946) and Edward Weston (1886-1958). The works, which were sent from Texas to New Jersey last year, were relocated to a warehouse in New York in July 2012. Before they were seized, the works were supposed to be shipped to Spain where they would be exhibited in a private home.

The U.S. Attorney’s Office in Newark, New Jersey announced in a court filing that the works, which are valued at approximately $16 million, were purchased with funds from a scheme that sold fake credits for renewable energy. The leader of the ploy is Philip Rivkin, owner and CEO of the Houston-based company, Green Diesel. Rivkin is accused of using money fraudulently funneled through his business to buy the photographs. Rivkin has not yet been charged with a crime.

The seized artworks include multiple Stieglitz prints including one his wife, the artist Georgia O’Keeffe (1887-1986), which was sold for $675,000 and an Edward Steichen (1879-1973) print titled Greta Garbo for Vanity Fair, which was purchased for $75,000. The court filing, which was announced on Friday, March 1, 2013, asks Rivkin to forfeit the works to U.S. authorities.

Published in News
Thursday, 21 February 2013 12:44

Arrest Made in Dalí Heist

Phivos Istavrioglou, a resident of Athens, Greece, has been arrested in connection to the botched theft of a Salvador Dalí (1904-1989) painting from a New York gallery last June. Security cameras captured Istavrioglou as he made off with the watercolor and ink work, which is valued at approximately $150,000. After surveillance images were released to the public, a panicked Istavrioglou mailed the Dalí painting back to the Upper East Side gallery in a cardboard tube.

 Fingerprints left on the returned painting helped officials track down Istavrioglou, 29, and he was arrested on Tuesday, February 19, 2013 at John F. Kennedy airport in a sting that lured him to the United States from Italy. After his arrest, Istavrioglou appeared briefly in a Manhattan court where he pleaded not guilty to grand larceny in the second degree. Istavrioglou’s bail was set at $100,000.

 The stolen painting, Cartel de Don Juan Tenorio (1949), was on view at the Venus Over Manhattan gallery as part of its inaugural exhibition, which opened in May 2012.

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Christie’s Post-War and Contemporary evening art auction garnered over $127 million on February 14, 2013, the highest total ever for a February sale of its kind at Christie’s London. Out of the 72 lots presented, 65 were sold; the auction total cruised past the pre-sale estimate of $86.8 million to $120.8 million.

The top lot of the night was Jean-Michel Basquiat’s (1960-1988) text-laden acrylic, oilstick, and paper collage on canvas titled Museum Security (Broadway Meltdown) (1983), which sold for $14.5 million. French collector John Sayegh-Belchatowski purchased the work, which carried a third-party guarantee. In 2012, Museum Security was pulled from a Christie’s New York auction after a legal dispute between an owner, the British aristocrat Lord Edward Spencer-Churchill, and dealers, Gerard Faggionato and Alberto Mugrabi, broke out. The case was settled out of court and the work was re-offered at Christie’s last night.

Other highlights from the blockbuster sale include Gerhard Richter’s (b. 1932) Abstraktes Bild (889-14) (2004), which sold to a telephone bidder for $13.2 million; Francis Bacon’s (1902-1992) Man in Blue VI (1954), which was also snapped up by a telephone bidder for $7.8 million; and David Hockney’s (b. 1937) figurative painting Great Pyramid at Giza with Broken Head from Thebes (1963), which went for $5.5 million.

Basquiat, Bacon, and Richter garnered major sales at both Christie’s and Sotheby’s, who’s contemporary sale the night before brought $116 million, proving that the category has not lost its edge in the art market.

Published in News
Thursday, 24 January 2013 17:24

Heirs of Hungarian Art Collector Head to Court

On January 23, 2013, a three-judge federal appellate court in California heard arguments from the heirs and relatives of a prominent Hungarian art collector. The lead plaintiff, David de Csepel, is the great-grandson of Jewish banker Baron Mór Lipót Herzog whose legendary art collection once included works by El Greco (1541-1614), Anthony van Dyck (1599-1641), Diego Velázquez (1599-1660), Pierre-Auguste Renoir (1841-1919), and Claude Monet (1840-1926).

The case, which could be the last major art restitution case relating to the Holocaust, involves 40 artworks valued at $100 million that were seized by Nazis during World War II. Csepel argued that Hungarian courts acted unjustly as they have never returned the stolen paintings nor paid restitution to Herzog’s relatives. In fact, a number of paintings once belonging to Herzog remain in the collections of Hungarian museums.

The lawsuit is attempting to use U.S. courts to press charges against the Hungarian government, three of the country’s museums, and a university. However, the Hungarian government’s lawyers argue that U.S. courts have no jurisdiction on foreign soil, pushing to have the case played out in Hungarian courts or the International Court of Justice. The plantiff’s attorney, Michael Shuster, claims that the case is relevant for U.S. courts because most of the living heirs involved in the case are U.S. citizens and that Hungarian courts can be problematic.

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British art collector, Douglas A.J. Latchford, has spent decades building his reputation as one of the foremost experts in Khmer antiquities. Latchford, a resident of Thailand, was knighted in 2008 by the Cambodian government for admirably returning 14th-century Khmer artifacts.

In sharp contrast to his previous accolades, Latchford is currently the subject of a civil complaint files by the U.S. attorney’s office. Federal lawyers state that Latchford, referred to in proceedings as “the Collector,” bought a 10th century Khmer warrior statue known as the Duryodhana in the 1970s knowing that it had been looted from a temple during the Cambodian civil war.

While Latchford denies ever having owned the work, court papers claim that he purchased the statue from a Thai dealer who acquired the work from an organized looting network. Allegedly, Latchford then helped get the piece into Britain by concealing what was actually being shipped. Upon its arrival to the U.K., the auction house Spink & Son sold the statue to a Belgian collector in 1975. The collector’s widow is the Duryodhana’s current owner.

The widow approached Sotheby’s New York in 2010, hoping to sell the 500-pound sandstone statue. However, the sale was put on hold because of objections from the Cambodian government. While lawyers are hoping to return the work to Cambodia, the auction house still plans on selling the treasure, stating that there is no evidence to prove that the statue was looted or that it is the property of the Cambodian government.

Latchford has been collecting Cambodian antiquities for over 55 years and has donated many works to well-known institutions, including the National Museum in Phnom Penh and the Metropolitan Museum of Art. A judge is expected to rule on the Duryodhana case within the next few months.

Published in News
Thursday, 15 November 2012 17:10

Met Museum Sued for Consumer Fraud

Two members of the Metropolitan Museum of Art in New York are suing the institution for deceiving the public by making patrons think that the suggested admission fees are mandatory. The historically free institution suggests entry fees of $25 for adults and less for seniors and students.

Theodore Grunewald and Patricia Nicholson files the suit in state court in Manhattan and said that the museum’s fee policy lacks transparency. They also argued that and that the museum fails to note that the fee is suggested on several of its websites and that it’s only in fine and barely legible print on signs near cash registers. A statute was put in place in 1893 declaring that the Met must remain free in order to continue receiving government funding.

Grunewald and Nicholson commissioned a survey of visitors to the museum and found that 85% of patrons believed they had to pay to gain entry.

Published in News
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