Sotheby's Taking a Hard Line

Le-Min Lim writing for Bloomberg is reporting Sotheby's is bringing suit against two mainland Chinese buyers. The suits come from the Oct 5th, 2009 Hong Kong sale where the two Chinese individuals purchased a censer (see image) and the other paintings. The two suits total $270,300.00. Lim reports that Sotheby's was quick to sue in order to send a message that the auction house will not stand for defaults in the quickly emerging Asian market.

Lim reports in Bloomberg

The winning bidder on a Qing Dynasty cloisonne censer and cover failed to pay “despite repeated requests and demands,” Sotheby’s said in a copy of its Jan. 30 filing to the city’s High Court that the company provided to Bloomberg. The U.S.- based auction house is also pursuing another buyer who won five antique paintings and wouldn’t pay.

“We can’t have people bid at our auctions and disappear without paying,” Ching said in a telephone interview. If the buyers don’t respond to the city’s ruling, Sotheby’s may apply for the judgment to apply on the mainland, in case “they think the long arm of Hong Kong law couldn’t reach them,” he said.

Hong Kong is the world’s third-largest art market after New York and London and a conduit for the mainland’s antique trade. China-related art-auction defaults hit the headlines last year after southern Chinese dealer Cai Mingchao’s successful $40 million bid on two Qing Dynasty bronzes at the Feb. 25 Yves Saint Laurent sale hosted by Christie’s International in Paris. Cai then refused to pay, citing the items’ controversial background as looted items.

To read the Bloomberg article click HERE.