Art Market Monitor

Global Coverage ~ Unique Analysis

  • AMMpro
  • AMM Fantasy Collecting Game
  • Podcast
  • Contact Us

Halsey Minor's Complaint

October 2, 2008 by Marion Maneker

The Cnet Founder Files a Class-Action Suit

At the center of the Halsey Minor’s counterclaim–reported on Bloomberg and in the LA Times–is the question of the advice he received from Sotheby’s. Here’s what the LA Times says:

According to Minor’s class-action suit, he started to build a collection of American art early this year, relying on advice from Dara Mitchell, head of Sotheby’s American paintings department. Assured by Mitchell that the Hicks was a plum piece, Minor bid $8.6 million at the May 22 auction. He balked at paying, the suit says, after subsequently learning that seller Ralph Esmerian owed money to Sotheby’s, and that “The Peaceable Kingdom” was being used as security for Esmerian’s debt.

It’s not clear how the Esmerian debt differs from the seller’s commission in this whole equation. But then there’s another twist to the argument:

Minor’s attorney, Eric M. George, said Wednesday that buyers who know that a painting is being sold to settle a debt may be inclined to keep their bids low because it could be a “distressed asset” — not because there’s anything wrong with the art, but because the debtor may be under pressure to unload it and may not have the option of refusing all bids and holding onto the piece until the market for it improves. By keeping Minor and others in the dark about “The Peaceable Kingdom,” he said, Sotheby’s avoided a fire-sale mentality that would have kept down the bidding, resulting in a less lucrative sale.

CNet founder Halsey Minor sues Sotheby’s in auction dispute (LATimes)

Cnet Founder Minor Sues Sotheby’s in Dispute Over Art Sales (Bloomberg)

Sotheby’s Faces Suit Over Disclosure (Wall Street Journal)

More from Art Market Monitor

  • Halsey Minor RespondsHalsey Minor Responds
  • Halsey Minor's Art Market AdventuresHalsey Minor's Art Market Adventures
  • Sotheby’s American Art = $34.8mSotheby’s American Art = $34.8m
  • Sotheby’s Am Paintings = $24.56mSotheby’s Am Paintings = $24.56m
  • Sotheby's American = $6.5mSotheby's American = $6.5m
  • Pia Catton Questions Cohen's JudgmentPia Catton Questions Cohen's Judgment

Filed Under: Uncategorized Tagged With: American, Collectors/Collecting, New York, Sotheby's

About Marion Maneker

LiveArt

Want to get Art Market Monitor‘s posts sent to you in our email? Sign up below by clicking on the Subscribe button.

  • About Us/ Contact
  • Podcast
  • AMMpro
  • Newsletter
  • FAQ

twitterfacebooksoundcloud
Privacy Policy
Terms & Conditions
California Privacy Rights
Do Not Sell My Personal Information
Advertise on Art Market Monitor
 

Loading Comments...