The article states that Park West is trying to have the trademark infringement case reversed or is asking for a retrial. The article states that Fine Art Registry is readying a case against Park West which involves more than a dozen unhappy Park West Gallery patrons. Park West of course states they have not done anything wrong or improper, and in fact have over a million satisfied clients. If the suits do get to trial, it will be interesting to see the details and inner workings of Park West and of course the outcome of how cruise ship art is promoted and sold.
In addition to those suits, Park West is also dealing with a possible class action suit in Seattle, WA which according to the Detroit Free Press accuses Park West of "racketeering, fraud and violating consumer protection laws by using phony certificates of authenticity to misrepresent artwork, issuing bogus appraisals that vastly overstate the value of artwork, selling mass-produced photomechanical copies as limited-edition prints and selling fake artwork, including art with forged artist signatures." Keep in mind lawsuits can be brought, proving the charges to a jury is something all together different, so dont read too much into the list of accusations.
I find the most interesting aspect of the story is a short statement where FAR had requested an IRS agent to testify during the defamation suit. The IRS declined, stating testimony could jeopardize a criminal tax investigation, although it does not state who or how it may be connected to the case.
The Detroit Free Press states
To read the full Detroit Free Press article, click HERE.Scaglione said the Internet firestorm Franks ignited has cost him $46 million in losses. Between Franks and the declining economy, he said, his 2007 annual revenue of $250 million has dropped by $100 million and forced him to lay off half of his workforce.
"It's a pity we have become this woman's fatal attraction," Scaglione said. "None of this litigation would exist but for Franks. This is cyber-terrorism at its worst."
In late April, a federal jury in Port Huron unanimously rejected Scaglione's defamation claims against Franks and awarded her $500,000 for trademark infringement. The jury said Park West created a Web site with a name similar to that of Franks' to lure away users and berate her.
Scaglione and his lawyer, Rodger Young of Southfield, have asked U.S. District Judge Lawrence Zatkoff to throw out the verdict or retry the case.
They said Franks, her witnesses and her lawyers repeatedly violated Zatkoff's orders by mentioning critical newspaper articles, other lawsuits and a possible federal investigation of Park West. Scaglione and Young said there is no federal probe.
Federal authorities declined to comment, but acknowledged that the IRS sent Franks' lawyers a letter in March saying it wouldn't let an agent testify at her defamation trial for fear of impairing a criminal tax investigation. The letter didn't say who was being investigated or why.
Her lawyers, Donald Payton and Jonathan Schwartz of Farmington Hills, said they plan to file a new lawsuit soon in Oakland County, involving more than a dozen other unhappy Park West patrons.
The one they filed in Oakland County in 2007 on behalf of 10 customers could go to trial next year. Scaglione settled out of court with four of the plaintiffs.
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