Update: Park West Gallery - FAR Awarded $500,000

The Detroit Free Press states that not only did Park West lose in its defamation suit against Fine Art Registry, but the Fine Art Registry was awarded $500,000.00 in its counter suit against Park West. Park West plans on asking the judge to throw out the jury verdict and promises to appeal the jury decision. I understand the jury verdict was unanimous and the $500,000 award was for a trademark infringement and not part of FARs additional counter claims for defamation and tortious interference.

It is also important to keep in mind this case was about defamation and the jury did not decide on if the prints in question and used as exhibits in the suit were authentic, fake or enhanced, although both sides produced experts to either support or discredit the authenticity.  Many of the buyers who have testified against Park West Gallery are also involved in a consolidated Federal case against Park West with claims of $22 million. The cases will be heard in Seattle in 2011.These cases, if not settled before hand very well could be based upon how the jury determines the authenticity of the art as presented by the plaintiffs and defendants attorneys.

The Detroit Free Press article is short, but contains a lot of information, so instead of summarizing I will post it in its entirety,

Southfield-based Park West Gallery took a $500,000 hit Wednesday in a legal brawl with a Phoenix-based Web site that said the gallery defrauded customers in art auctions aboard cruise ships.

"The verdict vindicates everything my client ever said about Park West," Farmington Hills lawyer Donald Payton said after a federal jury in Port Huron awarded $500,000 to Global Fine Arts Registry and its founder, Theresa Franks, for trademark violations involving registry Web sites.

"I'm ecstatic," Franks said. "I'm thrilled. After three years of hell, I've finally gotten a sweet, sweet, sweet victory."

Park West's lawyer, Rodger Young of Southfield, who had sought a $46-million defamation judgment against the registry, said he would ask U.S. District Judge Lawrence Zatkoff to throw out the verdict.

"Needless to say, we are going to vigorously appeal," Young said, adding that the gallery also would ask Zatkoff to find that it was defamed.

Park West sued for defamation in 2008, alleging that the registry engaged in a smear campaign by posting articles saying Park West had sold overpriced, forged and fraudulent artwork to unsuspecting customers during auctions aboard cruise ships.

The registry countersued, charging that it was Park West doing the smearing. Among other things, the registry said Park West had created Web sites with names similar to the registry's to divert readers. The registry said those Web sites made disparaging remarks about the registry.

Park West, founded in 1969, describes itself as one of the largest independently owned art galleries in the world. A large part of its business involves cruise ship art auctions.

The Fine Arts Registry, which devotes part of its Web site to exposing fraud and deception in the art world, said it began investigating Park West after reading news accounts and receiving customer complaints. It insists that its stories about Park West were true.