Sotheby's Resells Halsey Minor Purchase

Nearly a year ago art collector Halsey Minor purchased a group of paintings from Sotheby's for $16.8 million, including Edward Hicks' ' "The Peaceable Kingdom With the Leopard of Serenity" which Minor paid $9.6 million for, a record for an American folk art painting. There were several other paintings purchased at this sale by Minor, including a Childe Hassam painting, entitled Paris, A Winters Day which sold for $3.9 million (see image). Mr. Minor had issues with the how the Hicks painting was represented, stating Sotheby's had an interest in the painting which was not revealed, refused to pay, and the two parties are now in litigation.

Sotheby's decided to put the Hassam oil in its American sale of late last week. The painting sold for $2.3 million, incurring a loss of $1.6 million. Although the litigation, and various claims are interesting to following, what I find even more interesting as an appraiser is the loss of value in the Hassam painting over the course of the year, from $3.9 million to $2.3 million. This represents a loss of approximately 41% over the course of the year.

Some of the loss can be attributed to the various market issues the fine and decorative arts have been going through in the recent past, especially the past 6-8 months. Some of it can also be attributed to a painting being resold, and no longer being fresh to the market place.

I am not sure who is taking the loss on this sale. I wonder if the original consignor was paid by Sotheby's, I would think so as Minor was a regular collector of fine art. I would think Sotheby's is responsible for the moment until the litigation is concluded. In any event, a very interesting situation for all involved, especially appraisers as we view the various suits and market maneuverings.

To read some of the previous posts on this situation from the AW blog, click HERE and HERE.