More on Cruise Ship Art

Last week Jori Finkelof the New York Times reported on cruise ship art auctions. The title of her article was Art Auctions on Cruise Ships Lead to Anger, Accusations and Lawsuits. This report is not new, as many appraisers know, and as I have posted on these auctions on the AW Blog before. The largest of the cruise line auction galleries. The New York Times article covers 4 pages on the site, so make sure you click through and read the full article. A main issue or focus is the appraised values as assigned and determined by Park West. The states how one customer tried to get a refund, was told all sales are final. After contacting the NY Times and a call by the paper to Park West, the refund was granted.

The article also goes into the lawsuit with Phoenix based Fine Art Registry run by Theresa Franks. I also fine interesting a quote from the Park West Gallery attorney Robert Burlington stating "no verbal agreements or representations shall be of any force of effect unless set forth in writing in this invoice." If I understand correctly what Mr. Burlington is saying is that anything the auctioneers says, does not matter unless it is in writing in the invoice. Although not directly related, I think the current auction law bill in NY State is attempting to hold auction houses more accountable for their statements in order to protect clients and buyers from misrepresentation.

As cruise ship art is seen on a regular basis, the NY Times article is a must read for all appraisers. These types of stories and anecdotal evidence on cruise ship art has been in circulation for years. I wish the courts would finally take a stand on some of the reported issues as well as the cruise ship lines. But, a lot of money is at stake.

Finkel states The biggest player by far, with more than $300 million in annual revenue and nearly 300,000 artworks sold each year, is Park West Gallery, based in Southfield, Mich. It handles such a high volume of art sales at sea that it bills itself as “the world’s largest art dealer.”

Park West sells art on the Royal Caribbean, Celebrity, Norwegian, Carnival, Disney, Holland America, Regent and Oceania lines. (Princess runs its own auctions in-house.)

For the cruise-ship companies, Park West’s auctions have become a revenue source like any other concession. For the passengers the auctions are a popular form of onboard entertainment, like gambling or shopping or catching the shows.

Yet some Park West customers say they did not get what they bargained for.

Finkel continues While overcharging for a product is not in itself illegal, misrepresenting the goods sold can be. The plaintiffs’ central argument hinges on Park West’s description of its appraisals.

On the back of Park West invoices, issued on the ship, the appraised value is described as “the price a client would have to pay to replace the work through a reputable retail art gallery.” Yet on the Park West appraisals themselves, shipped to buyers along with their artwork, the appraised value refers to the “current Park West Gallery retail replacement price.”

A lawyer for the plaintiffs in both states, Shawn Khorrami in Los Angeles, said there was a big difference between the two. “It’s the difference between saying, ‘My house is worth $50 million because that’s what the market would pay for it,’ and, ‘My house is worth $50 million because I say so,” he said.

To read the full article, click HERE.