Art Law Blog

Upcoming Week of Big Ticket Auctions

Daniel Schnapp — Mon, 07 May 2012 15:32:55 -0500

This week, Christie's, Sotheby's and Phillips de Pury will take turns selling blue chip Contemporary Art at their respective May sales. After Sotheby's success at its Impressionist and Modern sale last week, what should we expect from these auctions?

According to ArtInfo, a Rothko titled "Orange, Red, Yellow" (1961) at an estimate of $35-45 million and an Yves Klein work, "FC1 (Fire Color 1) (1962) at an estimated $30-40 million are among the works for sale at Christie's on May 8.

Sotheby's will be offering each of three works for over $30 million - a Lichtenstein, a Warhol, and a Bacon on May 9.

Phillips follows May 10 with its sale, with headliners closer to $10 million - such as a Basquiat painting and a Warhol "Mao" (1973).

Each evening sale will be followed by a corresponding day sale on the following day.

[This entry was drafted with the assistance of Nicole Dornbusch].

"Scream" Sells for $119.9 Million

Daniel Schnapp — Thu, 03 May 2012 10:14:59 -0500

Edvard Munch's "The Scream" (1895), discussed earlier this week on the blog, sold last night for $119.9 million, "becoming the world's most expensive work of art to ever sell at auction" (New York Times). Within 12 minutes, the work has sold to a phone bidder, through Sotheby's EVP Charles Moffett.

The previous record, Picasso's "Nude, Green Leaves and Bust" sold at Christie's in 2010 for $106.5 million.

The rest of the auction also went well, with a total of $330 million, close to its high estimate.

Christie's held their Impressionist and Modern Art Evening Sale on Tuesday night, selling a total of $117 million in art, not even the price of the Munch work alone. The auction house via its website says, "We are particularly pleased with the results achieved for Cézanne’s study for “Card Players” and for our cover lot, Matisse’s “Les Pivoines (The Peonies),” which each sold for just over $19 million.

[This entry was drafted with the assistance of Nicole Dornbusch].

First NY Frieze Begins This Week

Daniel Schnapp — Mon, 30 Apr 2012 10:01:28 -0500

Frieze, the art fair already popular in London, will host its first New York show this week on Randalls Island.

This article reveals that the founders and directors of Frieze wanted the fair to be "for and of its host city" and chose this location for that fact. The park located in the East River is at the juncture of three boroughs, Queens, Manhattan and the Bronx. They liked that it was easy to reach, yet "a bit of an adventure for New York residents."

170 contemporary art dealers will be showing there from May 3-6. Of note, the show will feature a special Frame section, similar to the one at the London show, which features galleries less than six years old and present solo exhibitions.

[This entry was drafted with the assistance of Nicole Dornbusch].

Munch "Scream" Offered at Sotheby's for $80 million

Daniel Schnapp — Mon, 30 Apr 2012 09:55:53 -0500

Sotheby's will auction Edvard Munch's "The Scream," one of four versions of the work, on May 1.

According to this article, the work has been parodied and referenced many times since its creation, making it a cultural icon, like the Mona Lisa, and is correspondingly estimated at over $80 million.

[This entry was drafted with the assistance of Nicole Dornbusch].

Plans for Moscow's "Garage" Revealed by Zhukova

Daniel Schnapp — Fri, 27 Apr 2012 09:28:05 -0500

Dasha Zhukova, art collector and socialite, has revealed some of the plans for the Garage Center for Contemporary Culture. Rem Koolhaas, the Pritzker Prize-winning architect, will convert an abandoned Moscow restaurant into the new, highly anticipated art space.

Zhukova founded the project as a contemporary art nonprofit organization there in 2008. This article further explains that "earlier this year, Garage left its base in the Bakhmetevsky Bus Garage for Moscow's Gorky Park, where the ruined 1960s restaurant" is located.

Koolhaas intends to retain some of the traces of recent Russian history while modernizing the space.

[This entry was drafted with the assistance of Nicole Dornbusch].

Shattered Nigerian Artifact Lawsuit

Daniel Schnapp — Thu, 26 Apr 2012 09:19:49 -0500

A collector is suing Art + Auction magazine for allegedly shattering her 2,630-year-old Nigerian terracotta sculpture during a May 2011 photo shoot at her Tribeca residence. According to this article, the collector, Corice Arman says that "they were setting up the shoot and...[she] heard this enormous crash."

The work was appraised after the accident at $300,000 and Arman is seeking that amount, plus interest, from Louise Blouin Media, Inc., which owns Art + Auction. The complaint was filed April 24 in New York State Supreme Court in Manhattan.

[This entry was drafted with the assistance of Nicole Dornbusch].

Turkey Requests Return of Looted Antiquities

Daniel Schnapp — Fri, 30 Mar 2012 14:46:36 -0500

Following the lead of successful Italy and Greece, Turkey is now aggressively seeking the return of smuggled antiquities to the country from several U.S. museums. According to this article, Turkey has "supporting evidence and has threatened to halt all loans of art to those institutions until they respond to the claims." The Met has already been denied loans.

The majority of the works were acquired by the museums relatively recently - since the 1960s - with little or no documented provenance, which suggests that they could have come from illicit excavations.

Art Dubai's Success

Daniel Schnapp — Sat, 24 Mar 2012 15:02:37 -0500

Art Dubai, established 6 years ago, included 75 dealers from 32 countries this year. According to the Financial Times, the show saw a "distinct jump in quality." The dealers chose to focus on artists from the region, causing the fair to look different from other art fairs around the world.

Works for up to $500,000 were displayed at the show, such as a dome by Khosrow Hassanzadeh, though it uncertain whether they found buyers.

Art Info Names "Most Colorful" Collectors to Watch

Daniel Schnapp — Thu, 08 Mar 2012 11:32:16 -0500

Just as the art fairs get into full swing in New York City, ArtInfo has named the "Most Colorful Collectors" in this article. These collectors' antics make them interesting to watch - Jean Pizzoli, second on the list, for example, owns a clothing line he calls "Street Wear for Rich Old Men.”

More relevantly, the publication claims that the art these collectors endorse and purchase "could become the next big thing." These influential collectors often get ahead of the market, finding emerging artists before they become very successful. Don and Mera Rubell, also on the list, are well-known for such successes, having collected artists like Richard Prince before their fame.

[This entry was drafted with the assistance of Nicole Dornbusch].

26% Quarterly Profit Drop for Sotheby's

Daniel Schnapp — Thu, 01 Mar 2012 11:05:15 -0500

Bloomberg reports that Sotheby's (BID) saw 26% profit losses in the fourth quarter of 2011 as sales fell. Net income fell to $71.5m from $96.2m last year. This is especially interesting as fourth quarter 2010 was its most profitable since 2008.

[This entry was drafted with the assistance of Nicole Dornbusch].

Art Market "World's Strongest Economy"?

Daniel Schnapp — Wed, 29 Feb 2012 12:37:16 -0500

According to this article, Abigail R. Esman thinks the global art market is the “world’s strongest economy.”

We're not sure that is exactly correct, but quoting the annual Artprice report, she states that art sales for 2011 were the highest in history. Modern art, not surprisingly given its historical record, was the most profitable segment – with an outstanding revenue of over $6 billion, representing 52% of total global auction revenue.

[This entry was drafted with the assistance of Nicole Dornbusch].

Sommelier Faces Prison Time for Art Theft

Daniel Schnapp — Tue, 28 Feb 2012 12:35:51 -0500

On February 7, Mark Lugo, a wine steward and now art thief, admitted to stealing a $350,000 Leger drawing in New York. He has also been charged with stealing another five works by Mie Yim. This article confirms that Lugo has been sentenced to one to three years in prison for his crime.

[This entry was drafted with the assistance of Nicole Dornbusch].

Rosales Authentication Mystery Under Investigation

Daniel Schnapp — Wed, 22 Feb 2012 12:33:07 -0500

The authenticities of over 20 art works released to the art market 17 years ago are in question, some even under investigation by the FBI. Glafira Rosales, a little known art dealer from Long Island, sold the Rothkos, Pollocks, and works by other such Modernist masters to revered galleries such as Knoedler & Company.

Over the years, gallerists, artists, and appraisers agreed on the quality and authenticity of the works, yet doubts arose by 2003, especially due to the lack of provenance associated with each of them. Current owners have had trouble selling these works, as prospective dealers and buyers are hesitant to spend millions of dollars given questionable authenticity and provenance.

Nevertheless, as this article correctly explains, “authenticity can be difficult to litigate…In a criminal case the bar is higher. Prosecutors would have to prove that the Rosales works are fakes when even the experts can’t seem to agree. And if they are fakes, the government would still have to prove Ms. Rosales was in on any fraud and not an unwitting dupe herself.” So, even if the works’ values are being immensely compromised, the chances of owners gaining recourse in the near future, if ever, is uncertain.

[This entry was drafted with the assistance of Nicole Dornbusch].

Valentine Settles Royalty Dispute for Over $150k

Daniel Schnapp — Thu, 09 Feb 2012 12:30:55 -0500

According to this article, art collector Dean Valentine has settled with and will pay artist Mark Grotjahn 5% of his proceeds for selling his artwork ($150,000 on the total sales of $3 million), plus some attorneys fees, in accordance with the California “resale royalty” law.

In 1976, California became the only state in the United States to offer artists royalties on work sold for over $1,000, so long as the artist resides or the transaction happens in California.

Few artists actually acted upon the law in the past three decades, but that is now changing with artists including Chuck Close, Laddie John Dill and the estate of the sculptor Robert Graham suing auction houses for the unpaid amounts.

[This article was drafted with the assistance of Nicole Dornbusch].

Avant-Garde in Saudi Arabia

Daniel Schnapp — Mon, 30 Jan 2012 12:22:42 -0500

A new exhibition in Jedda, Saudi Arabia is one more likely to be seen in art capitals like London, Venice, or Berlin.

The show, which features 40 pieces by 22 young, edgy artists is organized by Edge of Arabia, an independent art initiative.

According to this article, this could not have happened in the country just 10 years ago. Even the young Saudi family attended the opening, further showing a cultural shift being watched by the art community.

[This article was drafted with the assistance of Nicole Dornbusch].

Art and Finance - Similar Markets?

Daniel Schnapp — Sun, 29 Jan 2012 12:19:28 -0500

In this article, Marc C. Taylor discusses the parallels and relationship between finance and Modern Art. He finds that in both markets, concepts are becoming more abstract and trading faster paced.

According to reliable estimates, in fact, the private art market reached 25 to 30 billion dollars by 2006 just as obscure financial instruments gained momentum. In addition, corporations and high net worth individuals use art to show their wealth.

The commodification of art itself has become popular, with artists like Warhol and Koons achieving the highest prices with works made with commercialization in mind.

[This article was drafted with the assistance of Nicole Dornbusch].

Art Dealer First to Go Public in German City in Three Years

Daniel Schnapp — Tue, 03 Jan 2012 12:14:17 -0500

On Jan 3, Weng Fine Art became the only company to go public in the once booming Krenfeld, Germany in almost 3 years. According to this article, this art firm's success is not as surprising as it would appear - the North Rhine-Westphalia area where it is housed is one of the wealthiest in the country and is just a 20-minute drive from the culturally vibrant Dusseldorf.

Weng runs his business uniquely - he prefers to discuss art deals one on one with his contacts, instead of attending big art fairs or showing at a big gallery in a major city.

Skate's art market index warns of the unlikely success for the firm though, by comparing its current trajectory to that of other Art dealers that previously went public only to go private again shortly after.

[This article was drafted with the assistance of Nicole Dornbusch].

Most Controversial Art Issues of 2011

Daniel Schnapp — Mon, 02 Jan 2012 11:39:00 -0500

ArtInfo discusses the biggest controversies of the art world in 2011 in this article.

Along with the protests of artist Ai Weiwei and collective Voina, the article also recounts issues of copyright, censorship, class tension between the art world elite and those whom they employ, and arts funding.

[This article was drafted with the assistance of Nicole Dornbusch].

Walmart Financed Museum Opens

Daniel Schnapp — Mon, 02 Jan 2012 11:36:00 -0500

Alice Walton has opened the Walmart-financed Crystal Bridges Museum of American Art in Bentonville, Arkansas. The museum has had its negative critics, like Bloomberg’s Jeffrey Goldberg, who called attention to the disparity between the grandeur of the American museum and the poverty of the American people in this article.

Nevertheless, Roberta Smith gives the museum itself a strong review and even says that “Crystal Bridges is poised to make a genuine cultural contribution, and possibly to become a place of pilgrimage for art lovers from around the world,” in this article from the New York Times.

Boston's Art Detective

Daniel Schnapp — Mon, 02 Jan 2012 11:28:06 -0500

Victoria Reed, curator of provenance at the Museum of Fine Arts Boston, researches potential acquisitions with questionable histories. In her position, the Museum of Fine Arts asks Ms. Reed to attend to provenance issues by investigating liens on title before the Museum acquires works.

Recently, her research, which traced a 17^th century gold medallion to a museum in Gotha, Germany, looted during the Nazi era, resulted in the Museum electing to decline to purchase the work. A few months later, the Art Loss Register announced that the dealer who had offered the medallion was returning it to the museum in Germany.

More about Ms. Reed's interesting work can be found here.

[This article was drafted with the assistance of Nicole Dornbusch].