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)

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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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