Safflane Holdings Ltd. et al v. Gagosian Gallery, Inc.
Filing
1
COMPLAINT against Gagosian Gallery, Inc. (Filing Fee $ 350.00, Receipt Number 931692)Document filed by Safflane Holdings Ltd., Robert Wylde.(tro)
AARON RICHARD GOLUB, ESQUIRE, PC
Attorneys for Plaintiff
34 East 67th Street _3rd Floor
New York, New York 10065
ph: 212-838-4811
fx: 212-838-4869
ARG 6056
UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
______________________________________X
SAFFLANE HOLDINGS
ROBERT WYLDE,
Civil Action No.
LTD., and
COMPLAINT
(Jury Trial Demanded)
Plaintiffs,
-againstGAGOSIAN
GALLERY,
INC.
Defendant.
______________________________________ X
Plaintiffs
ROBERT WYLDE
ESQUIRE,
SAFFLANE
HOLDINGS
l(_~::~~~~~~
LTD.
(~Wyldell), by their attorney,
PC, as and for their complaint,
AARON RICHARD GOLUB,
allege
as follows:
THE PARTIES
1.
organized
under
2.
Kingdom
Safflane
is a corporation
the laws of the Republic
Plaintiff
of Great Britain
3.
domestic
Plaintiff
Defendant
business
of Cyprus
Wylde is a citizen
and Northern
of the United
organized
Inc. (~Defendant") is a
under
State of New York, and maintains its principal
business
at 980 Madison
Avenue,
(~Cyprus").
Ireland.
Gagosian Gallery,
corporation
duly
the
laws
the
office and place of
New York, New York 10075.
-1-
of
JURISDICTION
4.
original
This is a civil action over which this Court has
jurisdiction
1332(a) (2) i
diversity
AND VENUE
under the provisions
the diversity
of citizenship
jurisdiction
value of seventy-five
of interest
dollars
Plaintiff
Safflane
exceeds
to
the sum or
($75,000.00),
is a corporation
organized
under the laws of Cyprus,
maintains
its principal
Plaintiff
Wylde
and Northern
herein.
Plaintiffs
relationships
6.
is a citizen
place of business
is a citizen
Britain
Ireland
assert
exclusive
of the United
duly
of Cyprus, and
in Nicosia,
Kingdom
and is an individual
claims arising
Cyprus.
of Great
plaintiff
from contractual
with Defendant.
The complaint
excess of Six Million
and costs.
seeks compensatory
damages
($6,000,000.00),
exclusive
Dollars
Accordingly,
in excess of the statutory
dollars
all proper parties
in controversy
thousand
Complete
and costs.
5.
interest
statute.
exists between
this action and the amount
of 28 U.S.C. §
minimum
the amount
in
of
in controversy
of seventy-five
is
thousand
($75,000.00).
7.
Venue
is proper
U.S.C. § 1392(a) (1) and
this District;
omissions
and
giving
in this District
(2), because
(b) a substantial
rise to plaintiffs'
-2-
pursuant
(a) Defendant
portion
claims
to 28
resides in
of the events and
occurred
in this
District.
FACTUAL
A.
BACKGROUND
The Defendant, and the World Renowned
Mark Tansey and Richard Prince
8.
Gagosian
Defendant,
("Gagosian"),
contemporary
galleries
established
is reputedly
art galleries
in 1979 by Lawrence
one of the most
managed
world-renowned
represented
by Gagosian.
artist
Mark Tansey
the renowned
approximately
information
Defendant
artist Richard
commencing
three art
owned and is
has represented
("Tansey")
2005 on a non-exclusive
and belief,
is wholly
G.
important
in the world and maintains
in New York City.l Defendant
principally
Artists
the
since 2004 and has
Prince
("Prince") since
basis and, upon
in 2008 on an exclusive
basis.
9.
Tansey
He is an American
monochromatic
hidden
was born in 1949 in San Jose,
postmodern
works,
painter best known
and elaborate
text, images and symbols.
for millions
of dollars
privately
paintings
Tansey's
for
incorporating
works of art sell
and at auction.
is, or ought to be, or should have been,
familiar
business
works
and creative
effectively
represent
aspect
of Tansey's
him as his gallerist;
California.
Defendant
with every
necessary
to
otherwise,
1
Defendant maintains ten gallery locations throughout the
world at these locations: New York City (three locations);
Beverly Hills; London (two locations); Rome; Athens; Paris;
Geneva and Hong Kong.
-3-
Defendant
Tansey
would not have been able to successfully
since 2004.
10.
Panama,
Prince was born
is an American
predominantly
artist
art."
of dollars privately
familiar
him as his gallerist;
Good
Defendant
represent
offered
Defendant
representative
Painting")
described
would not
Prince since 2005.
Eye Test"
(1981)
by John
most senior and experienced
for sale to plaintiff
authorized
to effectively
late July, 2009, Defendant,
("JG"), one of Defendant's
sales persons,
and
CLAIMS
The Sale of Tansey's "The Innocent
To Plaintiff Safflane By Defendant
In or about
is, or ought to
with every business
otherwise
TANSEY
11.
work
and calls it
works necessary
have been able to successfully
of
works of art sell for millions
and at auction.
aspect of Prince's
represent
who bases his artistic
Prince's
be, or should have been,
creative
in 1949 in the Republic
on the work of other artists
"appropriation
B.
represent
Wylde,
a painting
Safflane
by its
(the "Tansey
in the invoice of sale dated July 31,
2009, as follows:
MARK TANSEY
The Innocent Eye Test, 1981
Oil on canvas
78 x 120 inches
198.1 x 304.8cm
(TANSE 1981.0001
12.
No sale of art was or is made by Defendant
-4-
without
the express authority
principal
Gagosian,
which Gagosian
and supervision
including
of Defendant's
the sales set forth below
made all significant
in
and final business
decisions.
13.
the parties
Plaintiffs
based on several
actively
exclusively
marketed
factors,
collected
represented
relationship
and complement
Defendant
rendered
for Plaintiffs'
14.
including
in New York, orally
telephone,
in person
the following:
were
through Defendanti
sought works of art to
2
art cOllectioni
appraisals
and
on Plaintiffs'
artworks
company.
on or about July 20, 2009 to and
the date plaintiff
2009, JG represented,
market
Plaintiffs'
insurance
between
and whose paintings
specifically
written
Between
including
by Defendant
for its part,
developed
the works of Tansey, who was
and sold on the primary
Defendant,
improve
In 2004 a special
Safflane
assured
and warranted
and in writing,
and/or
was invoiced
to plaintiff
in sum and/or
bye-mail,
on July 31,
Wylde
substance,
by
the following:
i.
That Defendant could and would convey to
plaintiff Safflane good and unencumbered title to
the Tansey Paintingi
ii.
That Charles Cowles ("CC"), a well-known New York
City art dealer, was rightfully in possession of
the Tansey Paintingi
2
Commencing in 2004 Plaintiffs engaged in no less than 10
transactions with Defendant through JG (purchasing nine works of
art, including one Tansey painting, for a total of
$5,100,000.00) .
-5-
iii. That prior to CC's having taken possession of the
Tansey Painting, such work had been located and
exhibited at the The Metropolitan Museum of Art
(the "Met") located at 1000 Fifth Avenue, New
York City and that the Tansey Painting had been
properly returned to CC by the Met; and
iv.
That CC had advised JG that CC had had a
disagreement, described to Wylde by JG as a spat,
with the Met's new director (allegedly Gary
Tinterow, who replaced the deceased renowned
curator William Lieberman as the Chairman of the
Met's Department of Nineteenth Century, Modern
and Contemporary Art), and as a result the Tansey
Painting was no longer exhibited at the Met, had
been returned to CC, was now owned by CC and
could be sold to Safflane by Defendant.
15.
JG repeatedly
the excellent
provenance
had previously
prestigious
Painting,
Wylde
of the Tansey
been exhibited
museums
inducement
represented
which
Safflane
representations
Painting
the date plaintiff
(e.g., that it
as a major selling point and
to purchase
the Tansey
were made in conversations
in New York City commencing
through
Painting
to Wylde
at the Met, one of the most
in the world)
for plaintiff
and stressed
with
on or about July 20, 2009
Safflane
was invoiced
for the Tansey
on July 31, 2009.
16.
JG's representations
sum or substance,
in New York City, during
on or about July 20, 2009 through
was invoiced
exhibition
provenance;
to Wylde,
at the Met which
the Tansey
Painting's
-6-
the period
the date plaintiff
on July 31, 2009, concerning
history
in words and/or
the Tansey
enhanced
iconic
in
commencing
Safflane
Painting's
its value and/or
status; and the
scarcity
of quality
Tansey works of art in the secondary art
market were all material
consummate
JG's representations,
that the Tansey
Painting
sold to plaintiff
for Wylde
at the same premises
the period
responded
questions
Painting
which was
of CC's residence.
concerning
by assuring
in sum or substance,
had been properly
title
and reassuring
made
Wylde,
in
in New York City, that the
returned
to CC by the Met, CC
by Defendant,
and
Safflane
good and
to the Tansey Painting.
The facts, circumstances
justifiable
July 31, 2009, JG
title to and ownership
could and would convey to plaintiff
19.
assurances
then
On or about July
July 21, 2009 and ending
Painting
Painting
unencumbered
at CC's gallery
as CC's residence,
the Tansey
owned it, it could be sold to Safflane
Wylde's
Painting
by JG
On July 27 and 28, 2009 and at other times during
to Wylde's
words and/or
Defendant
to
and warranties
were confirmed
in the gallery portion
commencing
of the Tansey
Tansey
Safflane
to CC and could be
Street, New York City.
and JG viewed
on a wall
18.
by Defendant,
to view the Tansey
located at 84 Mercer
27, 2009, Wylde
assurances
had been returned
Safflane
which was located
hanging
for plaintiff
the sale of the Tansey Painting.
17.
arranging
inducements
reliance
on JG's representations
in New York City during
July 20, 2009 through
and reasons relating
the date plaintiff
-7-
to
and
the period commencing
Safflane
was invoiced
for the Painting
on July 31, 2009, were as follows:
i.
During and/or shortly after the viewing at CC's
residence, JG again reassured and represented to
Wylde, in words and/or in sum or substance, that
the Tansey Painting was no longer being exhibited
at the Met, the Tansey Painting had been properly
returned to CC by the Met, CC owned it and it was
hanging on CC's wall, and the work could be sold
to Safflane by Defendant;
ii.
JG was acting on behalf of one of the most
reputable and renowned contemporary art dealers
in the world;
iii. CC was a well known New York City art dealer who
was allegedly retiring from the business and was
selling the Tansey Painting as part of winding
down CC's art dealership;
iv.
Plaintiff Safflane and/or Wylde had previously
consummated several art transactions with
Defendant through JG, in excess of $5,000,000.00,
and a special relationship developed, as set
forth above, between Wylde and JG including one
of trust and confidence;
v.
Defendant was uniquely and professionally
situated in the art world to research and to
evaluate the truth or falsity of CC's
representations,
having dealt with the Met in the
past, knew key museum personnel and curators as
well as knew exactly how to source and verify the
relevant information from the Met relating to the
Tansey Painting. The lay Plaintiffs had no such
capability; and
vi.
JG's foregoing representations
concerning
ownership and title of the Tansey Painting were
rational, credible and there was no reason for
Wylde to doubt any of the foregoing.
20.
At all relevant
times, Wylde believed
Defendant
was acting
as a principal
Painting
with respect
to plaintiff
-8-
that
in the sale of the Tansey
Safflane
and that such sales
transaction
Safflane
would be consummated
and Defendant
21.
was to be gifted/donated
Cowles
documents
ownership
of the sale of
the Met had a 31% ownership
with a further agreement
of ownership
at or before
(who is CC's mother)
following
partial
Painting,
that the balance
plaintiff
as a principal.
to Safflane,
in the Tansey
commitment
between
Prior to 2009, and well in advance
the Tansey Painting
interest
acting
directly
of the Tansey Painting
the death of Ms. Jan
and/or CC.
According
to the
on file at the Met, the Met obtained
of the Tansey
and
Painting
its
as follows:
i.
A Promised Gift for Individual Donor (signed on
the Met's gift form) executed by CC in 1988,
giving a one percent (1%) interest in the Tansey
Painting to the Metj
ii.
Offer of a Promised Gift (signed on the Met's
gift form) executed by Ms. Jan Cowles in 1993,
giving a fifty percent (50%) interest in the
Tansey Painting to the Metj
iii. Offer of Partial Interest Gift (signed on the
Met's gift form) executed by Ms. Jan Cowles in
2003, giving a twenty percent (20%) interest in
the Tansey Painting to the Metj
iv.
22.
diligence
Offer of Partial Interest Gift (signed on the
Met's gift form) executed by Ms. Jan Cowles in
2004, giving a ten percent (10%) interest in the
Tansey Painting to the Met.
Had Defendant
based
professional
plaintiff
performed
proper
and customary
in part on access to the Met's
relationships
Safflane
between Defendant
did not enjoy, Defendant
-9-
due
staff and
and the Met, which
would have learned
that the Met maintained
interest
in the Tansey
and continued
Painting
to maintain
well before
an ownership
the time Defendant
sold the Tansey Painting
to plaintiff
own the Tansey Painting,
that it could not be sold to plaintiff
Safflane
Safflane.
23.
make
that ee did not
and that good and clear title could not pass to
plaintiff
known
Safflane,
In the alternative,
at all relevant
representations
ownership,
Defendant
knew or should have
times that it did not have the right to
to plaintiff
ee's alleged
rights,
Painting,
upon which Safflane
detriment
and was thereby
Defendant
acted with reckless
Safflane
regarding
and control
justifiably
damaged;
Defendant's
of the Tansey
relied
to its
or, in the alternative,
disregard
therewith
in making
such
representations.
24.
Tansey
On July 31, 2009, Defendant
Painting
$2,500,000.00
to plaintiff
Safflane
and issued to plaintiff
conditioned
to pass title
upon payment
Safflane
in full, stating
Payment
the Tansey
Painting
-10-
to Safflane
part
in full has been received."
was delivered
Safflane.
Such invoice
in pertinent
in full was made on or about August
thereafter
price of
an invoice dated
Painting.
from Defendant
"Title does not pass until payment
and sold the
for a purchase
July 31, 2009 for the sale of the Tansey
also purported
conveyed
5, 2009 and
to plaintiff
25.
formally
On or about April
advised
dated April
undivided
authorized
Safflane via email
interest
in the Tansey
Painting,
in any way to sell the Tansey
Painting
was extremely
PRINCE
a memorandum
On October
the following
Defendant
was not
Painting and the sale
embarrassing
for Defendant.
CLAIM
The Sale of Prince's "Millionaire
To Plaintiff Wylde By Defendant
26.
Wylde
incorporating
counsel
2, 2010, inter alia, that the Met owned a 31%
of the Tansey
C.
2, 2010, Defendant's
Nurse"
IS, 2009, Defendant
(2002)
showed plaintiff
painting:
Millionaire Nurse
RICHARD PRINCE (b. 1949)
Signed, titled and dated 2002 on the overlap
Ink jet print and acrylic on canvas
58 x 36 in. (147.3 x 91.4 cm) (the "Prince
Painting") .
27.
On October
16, 2009, Defendant
Wylde a fact sheet on the Prince
28.
sales person
a purchase
Painting.
On Friday October
23, 2009, Defendant,
JG, sold to plaintiff
by its
Wylde the Prince Painting
price of $2,200,000.00.
29.
dated October
Defendant
issued
to plaintiff
Wylde an invoice
23, 2009 on the same day as the sale described
above, memorializing
plaintiff
gave plaintiff
Wylde
the sale of the Prince Painting
for the sum of $2,200,000.00
Agreement") .
-11-
to
(the "Prince
for
30.
Two days later, on Sunday
mailed plaintiff
Wylde and advised
owner of the Prince
Painting
sale was accordingly
31.
Defendant
amount
had not withdrawn
from plaintiff
business
work of art
i.e., an offer higher
offer Defendant
of entering
No.1,
and belief,
agreement
and thereafter,
to the time, Defendant
Defendant
Defendant
unlawfully
Contract
No. 1 and accepts
a higher
unlawfully
Contract
No. l's original
repudiates
offer,
has a
to sell a
but prior to the
issues an
seeks higher
for the same work of art, and upon receiving
offer(s),
in
had already
Defendant
into a binding
("Contract No.1")
for Contract
offer(s)
25, 2009 e-mail and
Wylde.
time, and even subsequent
invoice
Wylde that he
it from sale but that in fact
a better offer,
Upon information
practice
plaintiff
Wylde that the truth was that the owner of the
than the $2,200,000.00
32.
higher
JG advised
Wylde in such October
had received
accepted
it from sale and the
cancelled.
had lied to plaintiff
Prince Painting
him, inter alia, that the
had withdrawn
Subsequently,
advised plaintiff
October 25, 2009, JG e-
such
and/or rejects
to the detriment
purchaser.
AS AND FOR A FIRST CAUSE OF ACTION
(Tansey Painting - Breach of Express Warranty
33.
foregoing
Plaintiffs
allegations
representations
repeat and reallege
of
of Title)
all of the
as if fully set forth herein. Defendant's
and description
made
-12-
in July, 2009 concerning
the Tansey Painting
and title thereto was an affirmation
or promise made by the seller to the buyer relating
Tansey Painting
which was a material
Tansey Painting
sale to plaintiff
34.
plaintiff
Safflane
represented
the Met, had been
Painting
returned
to plaintiff
Plaintiff
Defendant
plaintiff
Safflane
37.
Safflane
purchased
at
and
the Tansey Painting
and warranties.
representations
and warranties
and/or guarantee
title to the Tansey
would receive
Safflane
Painting
in
that
good,
and/or that
good, clear and unencumbered
Painting.
in a sum reflecting
the precise
amount
-13-
plaintiff
Safflane
the value of the Tansey
at the time of trial, exceeding
($6,000,000.00),
inter
title to the Tansey Painting would
As a result of the foregoing,
has been damaged
Safflane,
to CC, could be sold to Safflane,
could and would convey to plaintiff
title to the Tansey
Painting
the Tansey Painting,
to plaintiff
an express warranty
clear and unencumbered
and
Safflane.
Defendant's
July 2009 constitute
to
was no longer being exhibited
on such representations
36.
and as a part thereof,
to purchase
good, clear and unencumbered
relying
Safflane.
and warranted
alia, that the Tansey
35.
part of the basis of the
and prior thereto
to induce plaintiff
be conveyed
to the
At the time of the sale of the Tansey Painting
Safflane,
Defendant
of fact
Six Million Dollars
to be proven
at trial, with
appropriate
legal interest
including
l
consequential
and incidental
I
without
limitation
all
l
damages proximately
related
thereto.
AS AND FOR A SECOND CAUSE OF ACTION
(Tansey Painting - Breach of Implied Warranty
38.
foregoing
Plaintiffs
allegations
39.
contained
good
repeat and reallege
of Title)
all of the
as if fully set forth herein.
Defendant/s
contract
an implied warranty
and its transfer
to sell the Tansey Painting
that the title conveyed
rightful
was to be
and that the Tansey Painting
l
l
was to be delivered
encumbrance
to plaintiff
Safflane
free from any lien
l
or claim by third parties.
40.
Defendant/s
contract
to sell the Tansey Painting
contained
an implied warranty
delivered
free of the claim of any third person
infringement
Defendant/s
an implied
could and would convey
unencumbered
Safflane
Tansey
Painting
was to be
by way of
or the like.
41.
constitute
that the Tansey
representations
warranty
and/or
to plaintiff
title to the Tansey
would receive
good
l
in July 2009
guarantee
Safflane
Painting
that Defendant
good
clear and
l
and/or
that plaintiff
clear and unencumbered
title to the
Painting.
42.
Plaintiff
Safflane
purchased
relying on such warranties
and/or guaranties.
43.
of the foregoing
the Tansey Painting
As a result
-14-
I
plaintiff
Safflane
has been damaged
Painting
in a sum reflecting
at the time of trial,
($6,000,000.00),
appropriate
the precise
legal interest
consequential
the value of the Tansey
exceeding
amount
Dollars
to be proven at trial, with
including,
and incidental
Six Million
without
limitation,
damages proximately
all
related
thereto.
AS AND FOR A THIRD CAUSE OF ACTION
(Tansey Painting - Breach of Implied Warranty
Merchantability)
44.
foregoing
Plaintiffs
allegations
45.
contained
alia,
Defendant's
for the ordinary
to sell the Tansey
Painting
purposes
that, inter
was to pass without
to the description
Painting
objection
in the invoice, was fit
for which goods such as the Tansey
conform
to the promises
or
of fact made by Defendant.
46.
Plaintiff
Safflane
purchased
the Tansey
Painting
plaintiff
Safflane
on such warranties.
47.
As a result
has been damaged
Painting
all of the
of merchantability
are used, and would
affirmations
relying
agreement
an implied warranty
in the trade pursuant
and reallege
as if fully set forth herein.
title to the Tansey
Painting
repeat
of
of the foregoing,
in a sum reflecting
at the time of trial,
($6,000,000.00),
appropriate
the precise
legal interest
the value of the Tansey
exceeding
Six Million
amount
to be proven
including,
without
-lS-
Dollars
at trial, with
limitation,
all
consequential
and incidental
damages
proximately
related
thereto.
AS AND FOR A FOURTH CAUSE OF ACTION
(Tansey Painting - Breach of Contract)
48.
foregoing
Plaintiffs
allegations
49.
Defendant
consideration,
Tansey
Safflane
and Defendant
Safflane
and
for good and valuable
agreed
to sell the Tansey
for a purchase
thereafter
price of
issued to plaintiff
an invoice dated July 31, 2009 for the sale of the
Painting.
50.
paid Defendant
contract
On or about August
5, 2009, plaintiff
the sum of $2,500,000.00,
Safflane
thereby performing
the
on its part to be performed.
51.
neglecting
plaintiff
Tansey
into a contract,
in which Defendant
$2,500,000.00,
all of the
as if fully set forth herein.
to plaintiff
Safflane
and reallege
On July 31, 2009, plaintiff
entered
Painting
repeat
Defendant
to perform
Safflane
breached
its agreement
its obligations
by failing
by not conveying
good, clear and unencumbered
and
to
title to the
Painting.
52.
has been damaged
Painting
As a result of the foregoing,
in a sum reflecting
at the time of trial,
($6,000,000.00),
appropriate
the precise
legal interest
Six Million
Dollars
to be proven at trial, with
including,
-16-
Safflane
the value of the Tansey
exceeding
amount
plaintiff
without
limitation,
all
consequential
and incidental
damages
proximately
related
thereto.
AS AND FOR A FIFTH CAUSE OF ACTION
(Tansey Painting - Fraud)
53.
foregoing
Plaintiffs
allegations
54.
repeat and reallege
all of the
as if fully set forth herein.
Defendant
failed to inform plaintiff
that the Met owned a 31% undivided
Painting
and that Defendant
transfer
to plaintiff
interest
Safflane
in the Tansey
was not legally authorized
Safflane
to
clear title to the Tansey
Painting.
55.
Defendant
representations
concerning
to plaintiff
Safflane's
representative
title to the Tansey Painting
misrepresentations
their falsity
deceiving
purchase
knew or should have known that its
and omissions
the Tansey
disregard
were made with knowledge
such fraudulent
Painting
and intended
and omissions
Safflane
the misrepresentations
above by purchasing
of
of
Safflane
to
or were made with reckless
communicated
misrepresentations
plaintiff
or not such representations
the Tansey
induced plaintiff
and inducing
Painting
to whether
false. Defendant
concerning
were false, that such
and with the intent and for the purpose
and defrauding
Wylde
misrepresentations
that such material
be taken as true and caused and
to actually
and omissions
the Tansey
were true or
and justifiably
of Defendant
Painting.
-17-
rely on
set forth
56.
Tansey
The specifics
Claims section
57.
above in paragraphs
Defendant
upon information
of the fraud are alleged
and was exploited
exploited
CC's weak financial
on very
the motive
Painting
to commit
Defendant
position
to purchase
terms.
a fruitful
had
the Tansey
and reap a high
Safflane
client
the Tansey
Defendant
terms, as aforesaid,
from the sale to plaintiff
financial
who seized upon and
fraud as it could purchase
could maintain
and JG and
relationship
with
and Wylde.
58.
As a result of the foregoing,
has been damaged
Painting
by Defendant
(discounted)
on such favorable
profit margin
Safflane
favorable
to commit fraud as,
CC was in a desperate
condition,
Painting
11 through 25.
had the opportunity
and belief,
in the
in a sum reflecting
appropriate
the precise
legal interest
consequential
Six Million Dollars
amount
to be proven
including,
without
and incidental
Safflane
the value of the Tansey
at the time of trial, exceeding
($6,000,000.00),
plaintiff
damages
at trial, with
limitation,
proximately
all
related
thereto.
AS AND FOR A SIXTH CAUSE OF ACTION
(Negligent Misrepresentation)
59.
foregoing
allegations
60.
confidence
Plaintiffs
repeat and reallege
all of the
as if fully set forth herein.
Defendant
is and was in a special position
and trust with Plaintiffs,
-18-
as more
of
fully set forth in
paragraphs
13 and 19 above.
specialized
expertise
limitation,
relationships
Defendant
in the art market
61. Defendant
information
62.
representations
Defendant
plaintiff
Painting
(see paragraph
for the purpose
discharge
collection
When Defendant
of ee's statements
Painting
Plainfiff
representations
ee's alleged
Plaintiff
the Met to confirm
the Tansey
and enlarging
and
Painting,
Defendant
failed to
care by not making proper
rights or the truth or falsity
of the
(including paragraph
relied upon Defendant's
to its detriment.
by failing to inform
to be desired by
to the title and ownership
reasonably
Such
was made aware of the possible
as set forth above
Safflane
14), which
of purchasing
to the Tansey
related
and false
of Tansey paintings.
its duty of reasonable
to confirm
negligent
and inaccurate.
were known by the Defendant
title issues related
contact
made reckless,
to Plaintiffs
plaintiffs'
63.
and
to the Plaintiffs.
for the sum of $2,500,000.00
enhancing
Tansey
8-10 and 19(v) above.
had a duty to impart accurate
The Defendant
Safflane
without
such as the Met, as more
should have known were untrue
representations
inquiry
including,
with museums
fully set forth in paragraphs
correct
has and had a unique and
Defendant
Safflane
ee's alleged
Painting.
-19-
14) and
incomplete
was also negligent
that it took no steps to
rights
to the Tansey
64.
purchase
Plaintiff
Safflane
the Tansey painting
much less consummate
had it known title and ownership
65. Defendant's
Safflane
would not have offered to
were an issue.
actions proximately
caused Plaintiff
damage.
66. As a result Plaintiff
Safflane
in a sum reflecting
the value of the Tansey
of trial, exceeding
Six Million
precise
its purchase,
amount
interest
to be proven
including,
incidental
damages
without
Dollars
has been damaged
Painting
at the time
($6,000,000.00),
the
at trial, with appropriate
limitation,
proximately
related
legal
all consequential
and
thereto.
AS AND FOR A SEVENTH CAUSE OF ACTION
(Tansey Painting - Violation of New York
Arts and Cultural Affairs Law § 13.03)
67.
foregoing
allegations
68.
Affairs
and/or
Plaintiffs
Law
§
Defendant
authenticity
Safflane
violated
13.03 as Defendant,
Painting
all of the
as if fully set forth herein.
injure plaintiff
the Tansey
repeat and reallege
Safflane,
attesting
of the Tansey
when paYment
the New York Arts and cultural
intending
to defraud,
deceive
made and issued an invoice for
that title and accompanying
Painting
shall pass to plaintiff
in full had been received,
-20-
when in fact,
good, clear and unencumbered
Safflane
after payment
69.
authenticity
title did not pass to plaintiff
in full had been received
The Tansey
Painting
by Defendant.
invoice relating
is false and Defendant
violated
to title and
the law as
Defendant
could not pass title to the Tansey Painting
plaintiff
Safflane
Defendant
never had title to the Tansey
and unencumbered
plaintiff
upon information
title to the Tansey
Safflane
70.
because,
As a result
violation
of New York Arts and Cultural
plaintiff
Safflane
value
of the Tansey
Million
Dollars
Painting
limitation,
related
could not pass to
to Defendant.
and Defendant's
Affairs
Law
13.03,
§
in a sum reflecting
the precise
legal interest
all consequential
Good, clear
the
at the time of trial, exceeding
($6,000,000.00),
at trial, with appropriate
Painting.
of the foregoing
has been damaged
and belief,
Painting
when it made payment
to
amount to be proven
including,
and incidental
Six
without
damages proximately
thereto.
AS AND FOR AN EIGHTH CAUSE OF ACTION
(Prince Painting - Repudiation of Contract)
71.
foregoing
allegations
72.
Defendant
purchase
Plaintiffs
and reallege
23, 2009, plaintiff
into an agreement
the Prince
all of the
as if fully set forth herein.
On october
entered
repeat
Painting
Wylde and
for plaintiff
Wylde to
for the sum of $2,200,000.00
-21-
as set
forth above.
73.
At all times herein
was ready, willing,
and able to perform
of the Prince Agreement
without
limitation,
mentioned,
plaintiff
the terms and conditions
on his part to be performed,
payment
Wylde
of the purchase
including,
price therefor
in
full.
74.
On October
cause, Defendant
unlawfully
failed and refused
Wylde because
information
another
25, 2009, without
repudiated
to deliver
Defendant
and belief,
and plaintiff
agreement,
the Prince Agreement
the Prince Painting
had received
Defendant
a higher
offer.
notwithstanding
Wylde had entered
and
to plaintiff
Upon
sold the Prince Painting
buyer with a higher offer,
Defendant
legal reason or
to
that the
into a binding
i.e. the Prince Agreement.
75.
been damaged
As a result of the foregoing,
in a sum exceeding
($1,000,000.00),
appropriate
the precise
legal interest,
consequential
One Million
amount
damages
Wylde has
Dollars
to be proven
including,
and incidental
plaintiff
at trial, with
without
limitation,
proximately
related
thereto.
AS AND FOR A NINTH CAUSE OF ACTION
(Deceptive and Misleading Business Practices
GBL sec. 349 et. seq.)
76.
Plaintiffs
repeat
and reallege
-22-
-
all of the
all
foregoing
allegations
as if fully set forth herein.
77. Defendant
has engaged
and misleading
business
practices
sections
349 et. seq. as set forth above in par. 32.
78.
in violation
in deceptive
Defendant
of New York General Business
is an art gallery
open to the public at
large and which sells works of art to the public
engaged
in deceptive
and dishonest
impact on the public
79.
activity
affecting
maintaining
agreement
seeking
has engaged
consumers
a business
of art.
in consumer
at large.
practice
and/or accepting
agreement
repudiating
offer(s)
and/or
to the detriment
utilizes
tactics
respects
and plaintiffs
Defendant
and misleading
rejecting
been damaged
in a sum exceeding
($1,000,000.00),
appropriate
consequential
the precise
legal interest,
and incidental
the prior
of the original
injured
business
in favor of plaintiff
unlawfully
for the same work of
purchaser,
in material
thereby.
80. As a result of the foregoing,
for deceptive
by
into a binding
which were and are deceptive
have been
related
Defendant,
of entering
higher
at large, has
which has a broad
to sell a work of art and thereafter
art and unlawfully
binding
misconduct
at large and collectors
Defendant
a cause of action
practices
exists against
wylde and plaintiff
One Million
amount
damages
-23-
wylde has
Dollars
to be proven
including,
Law
at trial, with
without
limitation,
proximately
related
all
thereto.
JURY DEMAND
Plaintiffs
demand
WHEREFORE,
a.
a jury for all claims
plaintiffs
Million
Painting
Dollars
Safflane,
limitation,
($6,000,000.00),
the Tansey
in a sum exceeding
the precise
Six
amount to be proven
including,
without
and incidental
damages proximately
Cause of Action,
On the Second
against Defendant
Painting
Dollars
Safflane,
limitation,
damages
reflecting
at the time of trial,
($6,000,000.00),
at trial, with appropriate
the value of
in a sum exceeding
the precise
legal interest
all consequential
amount to be proven
including,
and incidental
Six
without
damages proximately
thereto;
c.
On the Third Cause of Action,
in favor of plaintiff
the Tansey
Million
the value of
thereto;
in favor of plaintiff
related
against Defendant
reflecting
legal interest
all consequential
b.
Million
damages
at the time of trial,
at trial, with appropriate
related
judgment:
On the First Cause of Action,
in favor of plaintiff
the Tansey
demand
stated herein.
Painting
Dollars
Safflane,
damages
reflecting
at the time of trial,
($6,000,000.00),
at trial, with appropriate
legal interest
Defendant
the value of
in a sum exceeding
the precise
-24-
against
amount
including,
Six
to be proven
without
limitation,
related
all consequential
On the Fourth Cause of Action,
in favor of plaintiff
the Tansey
Painting
Dollars
Safflane,
limitation,
($6,000,000.00),
the Tansey
in a sum exceeding
the precise
Six
amount to be proven
including,
and incidental
without
damages proximately
On the Fifth Cause of Action,
Painting
Dollars
Safflane,
limitation,
damages
($6,000,000.00),
the value of
in a sum exceeding
the precise
legal interest
all consequential
against Defendant
reflecting
at the time of trial,
at trial, with appropriate
Six
amount to be proven
including,
and incidental
without
damages proximately
thereto;
f.
On the Sixth Cause of Action,
in favor of plaintiff
Tansey
Painting
Million
Dollars
Safflane,
limitation,
reflecting
at the time of trial,
($6,000,000.00),
at trial, with appropriate
related
the value of
thereto;
in favor of plaintiff
related
against Defendant
reflecting
legal interest
all consequential
e.
Million
damages
at the time of trial,
at trial, with appropriate
related
damages proximately
thereto;
d.
Million
and incidental
the value of the
in a sum exceeding
the precise
legal interest
all consequential
against Defendant
amount to be proven
including,
and incidental
Six
without
damages proximately
thereto;
g.
On the Seventh
Cause of Action,
-25-
against Defendant
in favor of plaintiff
Tansey
Painting
Million
Dollars
Safflane,
at the time of trial,
($6,000,000.00),
at trial, with appropriate
limitation,
related
Dollars
limitation,
Wylde,
damages
($1,000,000.00),
without
damages proximately
against Defendant
in a sum exceeding
the precise
legal interest
amount to be proven
including,
and incidental
One
without
damages proximately
thereto;
On the Ninth Cause of Action,
in favor of plaintiff
Dollars
Wylde,
limitation,
thereto;
against Defendant
in a sum exceeding
the precise
legal interest
all consequential
j.
damages
($1,000,000.00),
at trial, with appropriate
relief
including,
and incidental
all consequential
i.
related
amount to be proven
On the Eighth Cause of Action,
at trial, with appropriate
Million
the precise
Six
thereto;
in favor of plaintiff
related
the value of the
in a sum exceeding
legal interest
all consequential
h.
Million
reflecting
amount to be proven
including,
and incidental
One
without
damages proximately
and
Granting
to the plaintiffs
such other and further
as this Court shall deem just and proper,
-26-
together
with
the costs and disbursements
attorneys'
Dated:
of this action,
and reasonable
fees.
New York, New York
March 10, 2011
AARON RIC
GOLUB, ESQUIRE, P.C.
Attorneys for Plaintiffs
rd
34 East 67th Street - 3
Floor
New York, New York 10065
ph: 212-838-4811
fx: 212-838-4869
ARG 6056
-27-
=========NOTICE OF ENTRY===========
PLEASE take notice that the within is a (certified)
true copy of a
duly entered in the office of the clerk of the within
named court on
Dated,
Yours, etc.
New Y01"k, New Y01"k10065
34 t;asi 67th Sheet-3"d -1=1001"
Aa1"on Richa1"dGolub, ~>C\ui1"e,
P.c.
Office and Post Office Address
Attorney for
To
Attorney(s) for
M.
Yours, etc.
67th Sheet
- 3"d-1=1001"
Aa1"on Richa1"dGolub, ~>C\ui1"e,
p.c.
=======NOTICE OF SETTLEMENT======
PLEASE take notice that an order
of which the within is a true copy will be presented
for settlement to the Hon.
on
at
Dated,
Attorney for
34 ~asi
New Y01"k, New Y01"k10065
UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
==========================================
Plaintiffs,
SAFFLANE HOLDINGS LTD., and
ROBERT WYLDE,
-againstGAGOSIAN GALLERY, INC.
Defendant..
SUMMONS AND COMPLAINT
_3"d
-1=1001"
'21'2-838-4811
New Y01"k,New Y01"k10065
34 f;asi 67th Sheet
Aa1"on Richa1"dGolub, ~>C\ui1"e,
P.c.
Attorney for Plaintiffs
Office and Post Office Address, Telephone
To
Attorney(s) for
Service of copy of the within is hereby admitted
Dated
...........................................................
Attorney(s) for
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