Update: Park West Gallery

The Detroit News is reporting a Florida Judge has thrown out a defamation claim by Park West. Park West had filed defamation suits in Florida and Michigan against the Phoenix based Art Registry which supposedly made claims about the authenticity and value of the art sold by Park West and therefore impacted the business and sales of Park West.

The court ruled that defamation only took place against the main gallery in Southfield Michigan, and therefore through out the Florida case. The Michigan suit continues against Art Registry. It will certainly be interesting from an appraisers point of view if the case actually gets to trial, taking into account public statements on the value and authenticity of the art and prints sold by Park West.

The Detroit News states The January lawsuits developed after several art collectors filed a joint lawsuit in Oakland County Circuit Court in December accusing Park West of selling nearly $600,000 in artwork with fake signatures of artists such as Salvador Dali.

Albert Scaglione, CEO and founder of Park West, has said that after his gallery declined a business offer from Fine Art in 2007 the company started making attacks on its Web site against the gallery -- prompting Michigan residents to believe they purchased fraudulent artwork. As a result the gallery countersued, saying defamatory statements were made.

Theresa Franks, CEO of Fine Art Registry, is pleased with the outcome in Florida.

"I'm very excited. It's a huge win for us. I believe the case in Michigan will meet with the very same fate," Franks said Monday.

Farmington Hills attorney Lawrence C. Atorthy, who represents Fine Art, called the case "smoke and mirrors" designed "merely to stifle legitimate scrutiny of (Park West's) business practices."

To read the Detroit New article, click HERE.