Visual Artists Rights Act

Daniel Grant has an interesting article in the Wall Street Journal about issues being caused by the Visual Artists Rights Act (VARA). This is important to appraisers, especially those that deal heavily in contemporary art VARA restriction could potentially impact the value of the work of art based upon ownership, artists rights, condition etc.  An attorney in the article is quoted as saying major effect of VARA has been to inform prospective buyers of art of "recognized stature" that they cannot do whatever they want with the pieces they purchase, because they, too, may find themselves with legal costs.


One way around VARA is when commissioning a work of art, have the artist waive his VARA rights within the contract.

Grant writes:

Artists' moral rights have been enshrined in law for 20 years through the Visual Artists Rights Act, or VARA, which was enacted as an amendment to the U.S. Copyright Code in 1990. VARA prevents the owners of artworks of "recognized stature" from destroying or altering them without the artist's approval. The reason: Unapproved alterations or destruction may damage an artist's reputation. The law establishes mechanisms by which an artist may retrieve a work of art that the owner might otherwise destroy, as well as enables an artist to disclaim ownership of a piece that has been altered. Works of art are also narrowly defined as paintings, drawings or sculptures, as well as graphic and photographic prints in limited editions of 200 or fewer copies.

However, other questions have arisen that were not predicted in 1990. Do artists have the right to stake out where that artwork will be permanently placed? Can artists claim that whatever they make and identify as art has to be treated accordingly? If a damaged artwork undergoes restoration and the artist doesn't like how it was done, can the artist claim the work was "destroyed"?

Back in 1990, it seemed as though the issue was making sure that collectors didn't intentionally damage or destroy significant works that they owned. Those kinds of problems rarely happen, although Mr. Ascalon's Holocaust memorial raises the question of whether making something better actually makes it worse. More often, courtroom judges must reach decisions in cases not necessarily envisioned by lawmakers. Take, for instance, the VARA lawsuit by Swiss installation artist Christoph Buchel against the Massachusetts Museum of Contemporary Art in North Adams.

To read the full WSJ article, click HERE.

Fall Art Exhibitions in Europe

Martin Gayford writes on the upcoming fall exhibitions in Europe.  Gayford notes that even with poor economic conditions the fall lineup of art exhibitions in Europe are strong and impressive.  He notes the more impressive exhibitions being Tapestries designed by Raphael at the Vatican at the Victoria and Albert, Gauguin at the Tate, Monet at the Grand Palais in Paris and “Venice: Canaletto and His Rivals” at the National Gallery in London.

Gayford writes

There’s nothing as stellar on the menu elsewhere. The National Gallery in London has “Venice: Canaletto and His Rivals” (Oct. 13-Jan. 16, 2011), a show that may throw light on the mania of 18th-century British gentlemen for buying views of La Serenissima. At the National Portrait Gallery is an attempt to reassess Thomas Lawrence in “Regency Power and Brilliance” (Oct. 21-Jan. 23, 2011). Lawrence mainly devoted his talents to making early 19th-century Britons, including the obese and corseted George IV, look more glamorous than they were. Does that prevent him from being a great artist? We shall see.

The British Museum has “Journey Through the Afterlife: Ancient Egyptian Book of the Dead” (Nov. 4-March 6, 2011), which is not a major loan show -- many of the exhibits come from the museum’s own collection -- yet may be fascinating. The Courtauld Gallery has one of those niche shows it does well, this time devoted to Cezanne’s Card Players (Oct. 21-Jan. 16, 2011).

On the photography front, there is Eadweard Muybridge at Tate Britain (Sept. 8-Jan. 16, 2011). Another Briton who presented himself as more glamorous than he was -- real name: Edward Muggeridge -- Muybridge emigrated to the U.S., where he took up photography. His greatest fame comes from the pioneering sequences he took of human and animal movement, which were immediate precursors of cinema.

To read the full article click HERE.

Art Theft

Doreen Carvajal has a very interesting article in the NY Times on art theft.  In past years art theft has always seemed have secondary importance when compared to other forms of crime.  But given the increased amount of art theft, and the high exposure of many museums and private collectors, the fight against art crime is now developing and advancing.  There are many books, blogs, journals and now university programs about art crime, which both educates and advances the need to combat with more resources within law enforcement.With a recent increase in high profile art crimes, the various worldwide law enforcement agencies are now taking a harder look at art crime, and the public institutions and private collectors are starting to better protect their collections.

Much of the art theft is believed to be perpetrated by organized crime, in general, and specifically by a small but loosely connected group of art thieves. Many are not sure the purpose, as it can be very difficult to sell internationally recognized art.  As the article points out, it is easy to steal, but much harder to sell prominent stolen art. Ransom for the artwork seems to be a primary motivating factor, although many other motivations remain a mystery.

Carvajal writes

The loose organization of art thievery is illustrated by the case of Bernard Jean Ternus, a French career criminal now sitting in a U.S. jail in Big Spring, Texas, after negotiating with Mr. Wittman and other undercover F.B.I. agents over Champagne on a Miami yacht to sell the Monet and the three other paintings that disappeared in 2007.

The paintings were stolen from Nice’s Museum of Fine Arts by five armed and masked men in jump suits, who were in and out of the galleries in four minutes.

In infiltrating the Nice group — which included the owner of a motorcycle shop and a bulldozer operator who was later arrested — Mr. Wittman also found himself talking with Mr. Ternus and another Frenchman about the availability of two Picasso paintings stolen from the apartment of Picasso’s granddaughter, Diana Widmaier Picasso.

Whether or not Mr. Ternus really had contacts with the gang that stole the Picassos remains unknown, but Mr. Wittman said he received an e-mail with photographs of the stolen paintings posed next to a newspaper dated a week after the theft.

Olivier Baratelli, a French attorney for the Picasso family and also a victim of art theft, said that no one ever demanded a ransom for the two well-known paintings and a Picasso drawing, which have since been recovered. “Frankly, we don’t have explanations, and it all remains a great mystery,” he said.

The thieves were so careful the night of the burglary, he said, that they caused little damage to the paintings except for minor cracks when the works were rolled into tubes.

Ultimately, three middle-aged men — all with ties to the local circuit of flea markets and antique dealing — were arrested when they tried to broker a deal for the painting with a fourth unidentified art expert in a Panama hat. One of the suspects was Abdelatif Redjil, who had gained a measure of fame earlier when he claimed to be the first person to comfort the dying Princess Diana after her car crash a short walk away from the Museum of Modern Art.

Click HERE to read the full NY Times article.

7 Steps for 2010 Heirs

There was a recent discussion post on a LinkedIn forum about an article from Forbes on the current 2010 estate tax situation, and seven steps heirs of 2010 should consider. The article did mention there is still the possibility of the law changing, and also that it could become retroactive.  I have posted on the AW Blog on these topics in the past and have tried to monitor legislation with regards to estate tax. 

Many experts felt the further into 2010 we advanced the less likely we are to see retro-active legislation.  This Forbes articles states there is ample precedent to make any new law retro-active.  Would some 2010 heirs sue, certainly, but most would probably comply.  The article author thinks there is only a remote chance of a new estate tax law being passed this year and if so it will probably settle at something close to the 2009 level of  a $3.5 million exemption and tax rate of 45%.

Only time will tell and congress, particularly the Senate has had opportunities to pass several different legislation dealing with the estate tax and has failed to do so. Time will tell, but it is growing short.

Of the seven steps for heirs to follow, the first is to have assets appraisers, followed by locate purchase records, to delay selling appreciated assets, postpone distributions, extend paperwork deadlines, apply the basis amount fairly, and to guard against executor's risk.  Overall the article has some very good points and enough depth to make the content useful for personal property appraisers.

Deborah Jacobs of Forbes reports:

To further complicate matters, there's a possibility--though as the year wears on it seems increasingly remote--that Congress will restore the tax retroactively with the same $3.5 million exemption and 45% top rate that existed in 2009. Past court cases suggest that is perfectly legal. But some people with a lot at stake have argued that a retroactive tax is unconstitutional and threatened lawsuits. With the prospect of litigation looming, any legislation that takes effect in 2010 would almost certainly need to offer a choice for heirs of people who die this year: Pay estate tax, or use the modified carryover basis system that's in effect while there is no estate tax.

Whether heirs are stuck with carryover basis, or wind up with a choice for 2010 and elect to use the carryover basis/no estate tax option, inheritors and their advisers need to take the following steps.

1. Have assets appraised.

As in past years, unless the date of death value of a costly asset is obvious (as it is, for example, for marketable securities), you will need to get an appraisal.

If estate tax is an issue, you use this information to figure the total value of the estate, and then apply exemptions and deductions. For instance, you subtract charitable bequests from the total. There is also an unlimited marital deduction for assets passing to a citizen spouse, either outright or through certain kinds of trusts.

Under a modified carryover basis system, you use date of death values for a different purpose. Subject to certain limitations, if an asset is worth more when someone dies than she paid for it, her estate can apply the $1.3 million basis allowance to the difference. Once this allowance is used up, there might be income tax, but it's not triggered--meaning it doesn't have to be paid--until the asset is sold (a common misconception). At that point the total amount subject to tax would consist of the difference between the date of death value and the basis allowance, plus any appreciation after the date of death.

Click HERE to read the full Seven Steps for 2010 Heirs in Forbes.

Excerpt from the Journal of Advanced Appraisal Studies - 2010

This weeks excerpt from the Journal of Advanced Appraisal Studies is by Brian Hiatt. of Collectorpro software.  Brian's firm produces software packages for the appraisal and collecting communities.  He is well familiar with the different types of reports personal property appraisers use. Brian breaks the software down in a comparison chart for using a word processor, spreadsheet, database and industry specific programs.

Next week is the final installment of the excerpt series I have been running from the Journal.  Robert J Corey, Ph.D. and Robert W. Cook, D.B.A. write an article entitled Lack of Objectivity Leaves Appraisers at Risk: Index Adjusted Good-Better-B est Appraisal Model Offers Partial Solution.

The following is on using a word process to prepare appraisal reports.

• The appraiser has complete control over the layout and format of the report. Since a word processor allows the writer to place anything anywhere on a page, the appraiser can create a custom appraisal report layout for each and every object in the appraisal.

• Word processors are easy to use and easy to learn and require little technical knowledge to begin creating documents and reports.

• Word processors are “what you see is what you get.” This allows the appraiser to view how the report will look as they create the report.

The cons to using a word processing program include:

• Providing consecutive object numbering may be time consuming. For example, if an appraiser enters 200 objects numbered 1-200 in a word processing document, and then notices the need to remove object number 52, the appraiser must manually renumber every object after number 52 so as not to have skipped numbers in the report.

• Images may be difficult to manage and insert into the word processing document. When an appraiser inserts images into a word processing document, the word processor will push everything below that image down to accommodate for the space needed for the image. This can cause objects after the image to drop to the next page, be split across pages, or cause blank pages. The appraiser must spend time adjusting the image size to make everything fit properly.

• Total valuation calculations must be done manually. The appraiser must use a calculator or adding machine to add up the valuations for each object in order to get a total valuation for the appraisal report.  I talked to one appraiser that told me that he would call out the values and his partner would add them up. He said they did this multiple times to make sure the totals were correct and every time they ended up with a floor full of adding machine paper to wade through.

All proceeds from the sale of the Journal support the educational initiatives and scholarships of the Foundation for Appraisal Education. The cost of the journal is only $55.00, a bargain for the amount of content supplied, and for a short time shipping is free. For more information visit www.appraisaljournal.org to order your copy.

Online Appraisals

The Wall Street Journal has a review of several online appraisal firms.  The firms reviewed included www.Worthpoint.com, www.Whatsisworthtoyou.com, www.Auctionwally.com, www.Valuemystuffnow.com, and www.Instaappraisal.com.

The author contacted the International Society of Appraisers Director of Eduction, Leon Castner, ISA CAPP for background on appraising and to review the estimates and conclusions given from the online groups.  According to Castner, many of the prices were correct, while a few he felt were not.  The article seemed very focused on the turnaround time of these groups, and that faster results were deemed a necessary element of the process.

The article states

We tested five sites where a single appraisal costs up to $20 and takes one to eight days to complete. The items appraised were a pair of vintage diamond and black onyx earrings bought in the 1940s, a 19th century gilded Meissen porcelain bowl bought in 1947 at the State Hermitage Museum in St. Petersburg, Russia, and a vintage Olivetti Valentine typewriter. Each appraisal included its estimated value as well as additional information about our items, such as history and care instructions.

In most instances, we uploaded detailed photos of three items to the website and included information we had available for each object. Appraisal results were mixed. For example, auction values for the earrings varied by as much as $625. "You could ask five appraisers [for] five values and get 15 answers," says Leon Castner, director of education at the International Society of Appraisers and a partner in an appraisal firm in Hope, N.J. He examined our photos and then vetted the other five appraisals that we received.

Mr. Castner points out that it's important to understand what type of value is listed in the quote. An auction or fair market value, for example, is significantly higher than quick sale value, which is what an item would yield at a pawn shop, he says.

To read the complete article, click HERE.

Corporate Art

Jill Lawless writing from London for the Associated Press has an article on corporations, profits and decisions to be made on selling corporate art collections in order to improve the bottom line. Much of the commentary has already been covered in the press and here on the AW Blog, such as the Lehman Brother sales.

Lawless also states some of the rationale and reasons for corporate collections.  She covers a lot of points,  in a short article. Lawless quotes Judd Tulley as saying some corporations do not wish to sell off art because of the negative impression it leaves with the public. Sort of a last resort, and that the company must behaving problems.

Lawless states

"Over the last five or six years we've dealt with more and more corporate as well as private clients," said Saul Ingram, head of European corporate art services at Sotheby's auction house.

"Obviously there have been economic changes in the last couple of years, and I think that has heralded a change in attitudes — that these collections need to be trimmed, to focus on quality."

Cathy Elkies, head of private and corporate collections at Christie's, also says she has seen an increase in the corporate side of the business, and expects it to continue.

"In some cases, organizations are editing and refocusing their collections," she said. "Others are looking to completely divest themselves of their art offerings."

Corporations collect art for a variety of reasons, of which turning a profit is often the least important. Some companies like to see supporting emerging artists as a form of corporate social responsibility, or philanthropy — works can be lent to museums and galleries for shows.

Others use art to flaunt their corporate wealth. Fred Goodwin, former chief executive of the once high-flying but now state-owned Royal Bank of Scotland used to boast about the David Hockney in his office.

Sometimes, art is used to enliven the work environment. Half a century ago, industrialist Alexander Orlow adorned the walls of his Turmac tobacco factory in the Netherlands with bright abstract works — inspired by the theme "joie de vivre" — to cheer his workers.

British American Tobacco later acquired the company and closed the factory. In March, BAT sold more than 160 of the artworks at auction for 13.6 million euros.

Click HERE to read the full article.

Auto Sells for over $30 Million

Bloomberg is reporting a 1936 Bugatti Type 57SC Atlantic sold for $30 million. The Huffington Post reports it was $35 million, and that the car was purchased in 1971 for $59,000.00.  That is a very nice ROI.

The Huffington Post article states that the collector car market is red hot at the moment, with prices sharply increasing. I am not sure of the collector auto market, and if that interest and increase in values is just at the top of the market, for truly rare examples like the Type 57SC Atlantic or if runs deeper.

Which makes this extraordinarily beautiful and precious car we are gazing at even more impressive. Considered by many to be the ultimate expression of the motor car as art form, the auction house which negotiated the sale says the price was 'between $30 and $40 million,' but a charming older woman sitting next to me at cocktails (where Lanson Champagne celebrated its 250th anniversary with a fine pouring) said, "I know the seller's family very well, and the final price was exactly $35 million." The car was one of only three built by Jean Bugatti, son and heir of the legendary Ettore. The prototype 'Aerolithe Electron Coupe' was in the1935 Paris Auto Show; it was then developed further and - radical in design and engineering - used riveted aluminum panels which he mounted on Bugatti's most sophisticated, powerful and revolutionary Type 57S chassis. This one (chassis #57374) was sold to Lord Victor Rothschild of London, who ordered it in light blue with a dark blue interior. In 1939 he sent it back to the factory to have a supercharger installed. The only other example remaining is in the collection of designer Raph Lauren.

To read the full article, click HERE.

Another Shot at the Art Market

The NY Times recently ran an opinion piece by past investment banker and author William Cohen.  Cohen starts out saying that once you have been made on Wall Street, it is a natural progression to become an art collector and advocate.  Cohen then states how, just like on Wall Street, the art market can be dangerous to collectors. 

Cohen basis his arguments on two recent events, both of which have been topics of posts on the AW Blog. The first is the yard sale photographic negatives stated to be by Ansel Adams, and the other is the recently found Degas plaster molds. Cohen rightfully states the danger being that the art world has yet to decide the authenticity of the items and sales are being arranged for large dollar amounts.  Although, if you are an art speculator, then perhaps the risk is considered and may be acceptable.

Cohen states that each time authenticity is challenged for a high profile work of art, the integrity of the art market is damaged.  That is just too broad of statement to be acceptable. I dont completely agree, granted the Ansel Adams situation and $200 million valuation does hurt the image of the art market, but scholarship and technological abilities to authenticate change over time, and therefore attribution can also change.  To me. this is not a negative, but a positive as the art market assesses and re-assesses noted works and artists.

Cohen states

Bankers and traders — and especially hedge-fund managers and private-equity titans — seem to think that art is not only a great place to stash their cash but also bestows upon them a certain intangible cachet that their jobs, especially these days, don’t provide.

There is a long history of Wall Street tycoons indulging themselves this way, and some actually seemed to know what they were doing in buying art. Not for nothing did Bobbie Lehman, the patriarch of Lehman Brothers after World War II, have one of the best private art collections on the planet. Other financiers — like Michel David-Weill, the scion of the Lazard banking fortune; Stephen A. Cohen, the self-made hedge-fund billionaire; and Leon Black, the private-equity don — are widely considered to have among the finest art collections in the world.

But like Wall Street, the art market is a very dangerous place, populated by any number of unscrupulous figures finding increasingly sophisticated ways to separate people from their money. Although no one is likely to have much sympathy for a bunch of Wall Street types who may end up getting snookered while trying to use art to improve their tarnished images, the fact remains that as the sums paid for works of art spiral upwards — in May, a Picasso painting sold for a record $106.5 million — the questionable behavior seems to be metastasizing. This must stop.

To read the full NY Times opinion piece, click HERE.

Online High End Art Fair

Scott Reyburn has an article on Bloomberg about VIP, an online art fair which will focus on high end contemporary art.  Some of the artist to exhibit online with VIP are Jeff Koons, Richard Prince, Damien Hirst and Andreas Gurksy.   The online art fair is now scheduled for Jan. 22 to Jan. 30, 2011. This is not your ordinary online art sale.  Online admission has tickets selling for $100.00 during the first two days and $20.00 for the rest of the week.  There will be direct internet contact between potential buyers and exhibiting galleries through instant message, Skype and the telephone. The cost to galleries is about 1/5 of what it costs for a live exhibition, so the savings as well as exposure to new collectors is a positive.  The question is will collectors catch on and be willing to first pay the entry fee and then buy expensive art online.

The idea is not as far fetched as it sounds.  Consider that international auction houses have been using and promoting more and more sales online.  Additionally, much of the buying public and collectors are shopping and then  buying online.  Art fairs online just seem like a natural progression.  I think it could work and also add competition to auctions houses, so long a value is offered.  There might be some benefits for appraisers as additional market information of the offerings, sales and transactions become more public and transparent.

I will try to monitor the progress of the VIP online art fair and update and report here on the AW Blog.

Reyburn reports

The fair’s website will allow visitors to zoom in on the paintings, enjoy multiple views of sculptures and watch videos.

“It’s a lot easier to go to an art fair when you can do it in an easy chair,” Levin said. The lavish parties and dinners thrown by galleries when collectors fly into town wouldn’t be missed. “If the social aspect is why you’re participating at an art fair, you’re not going for the right reason,” he said.

Dealers are attracted to the VIP Art Fair, the first of its kind, by the opportunity of gaining new clients from emerging economies, said James Cohan, co-founder of the fair, who also has a gallery in Shanghai.

Chinese Presence

Buyers from China, which this month became the world’s second-largest economy, have so far been a limited presence at Western dealer-led art events.

The fair also appeals to increasingly cost-conscious gallery owners who spend hundreds of thousands of dollars each year on booths, travel, shipping, accommodation and entertaining.

To read the full article, click HERE.

Can You Trust Art Dealers?

Daniel Grant writes an interesting piece in the Wall Street Journal on trusting art dealers.  Grant mentions the recent flurry of lawsuits where collectors feel the prices they have paid from dealers does not represent value.  This has long been an issue, and from an appraisal perspective, many appraisers need to be cautious and understand differing market levels, and the difference between price and value.

Grant spares no one, from museums, to auctions houses to private dealers, they all share in how art is valued and represented.  A very interesting article for the dealer, auctioneers, collector and appraiser. Although his article is more of a list of several cases where sales were contested, it is still a good article to be familiar with.  He does mentioned court cases and the importantance or at least the responsibility that comes along with expertise.

Grant states

The dealer, of course, may not necessarily be in the wrong. A South Korean citizen, Najung Seung, paid Manhattan art dealer Mary Dinaburg $290,000 for a Julian Schnabel painting, after the dealer told her it was worth as much as $500,000—only to find out soon afterward that it was worth closer to $110,000, according the Ms. Seung's lawyer, Michael F. Maschio. Ms. Seung wasn't entitled to get her money back, because the dealer who sold it to her wasn't an expert on the artist's work, according to a New York State Supreme Court ruling filed in 2009.

The court ruled that claims regarding an object's value aren't to be relied upon "if the facts were not peculiarly within [the] other party's knowledge." Ms. Dinaburg didn't possess any "unique or specialized" expertise in the valuation of contemporary art, and Ms. Seung's "blind reliance on Dinaburg's alleged statements of the painting's value is not reasonable as a matter of law." In addition, she "could have, but did not, obtain her own appraisal," which would have made clear the painting's value.

Especially pertinent in this kind of fraud lawsuit is the issue of who sets the price. Carl and Anne Rice of Tucson, Ariz., bought two paintings by Martin Johnson Heade at a local estate sale for $88 in 1996, and later sold the works at Christie's auction house in New York for more than $1 million. They were then sued by the estate in 1998. The Arizona Court of Appeals ruled in the Rices' favor, since the price for the paintings in the estate sale had been set by the sellers or their representatives.

So how do you avoid becoming a sucker? Gaining expertise in a hurry may not be possible, but there are ways to obtain enough information to proceed cautiously. There are, for instance, online auction-results sites that buyers and sellers use regularly—such as ArtNet.com, AskArt.com and Artprice.com—and they may offer a sense of how comparable works of art have done at public sales. (Art dealers and gallery owners tend to keep their own price and sales information confidential.)

To read the full WSJ article, click HERE.

Excerpt from the Journal of Advanced Appraisal Studies - 2010

Another week passes and it is time for an Excerpt from the Journal of Advanced Appraisal Studies. This weeks excerpt is by appraiser Scott Zema, ISA CAPP on Personal Property Appraising and the Element of Time. Scott has written extensively on investments in fine art and collectible, and applies investment theory to appraising and collecting.

Next week, Brian Hiatt of Collector Pro software compares different software used in compiling personal property appraisal reports.

Remember, free shipping ends on the 23rd of August.See below for links to order your copy of the Journal of Advanced Appraisal Studies.

Scott Zema writes:

For investors of any type, it is an interest in the movement of time itself that is considered a key element in considering the rewards conferred by the acquisition, retention and eventual disposal of commodities for eventual profit. So for the investor in personal properties, an interest in how these commodities behave in the marketplace and the general investment-related characteristics of properties as identified through change and evolving circumstances are important considerations.

In contrast, proper appraisal practice consists of localizing and describing characteristics and values of property as of a specific date. The appraiser, in effect, takes a 'snapshot' of value of a particular property and incorporates this into a report for various functions, purposes, circumstances, and client requirements and is not to be distracted from documenting that important valuation moment.

This snapshot approach is professionally essential at one level, but I believe that it comes at the expense of productive consideration of enormous swaths of cultural assumptions, market theory and product information which should be of great interest to the appraisal community. This information extends beyond the momentary and immediate. It can tell appraisers a great deal about properties they characteristically evaluate rather than what is apparent and simply tied to the date of sale or to the date of the appraisal.

I have come to believe that it benefits appraisers to consider the nature of any item of personal property in the marketplace, not only at the moment of the valuation, but also at an ongoing temporal and consequently larger theoretical scale. This is similar to how an investor in personal properties might view the marketplace. In other words, appraisers need to connect the momentary ‘dots’ and create what I would describe as a conceptual moving picture of properties and to learn how to track properties over time and through the markets in order to develop a more comprehensive understanding of what they are evaluating.

I am not arguing that appraising is the same activity as investing, or that investing is somehow superior to appraising, or that the two disciplines should be combined. What I am saying is that my study of the investment market has proven revelatory to my professional practice. As an appraiser it has had the effect of sharpening and deepening my understanding of valuable properties and how they are to be appraised.

All proceeds from the sale of the Journal support the educational initiatives and scholarships of the Foundation for Appraisal Education. The cost of the journal is only $55.00, a bargain for the amount of content supplied, and for a short time shipping is free. For more information visit www.appraisaljournal.org to order your copy.

Cutting Costs

Daniel Grant has an interesting article on the Huffington Post about artists and galleries using email instead of print.  We have seen the auction houses cut back on print and mailing expenses, and it now appears to have taken hold within art galleries as well.  Many galleries and artist are cutting back on exhibition notices and fliers and are using email delivery systems.

The trend is of course moving toward more electronic communications, but many gallery and artists are using a slower and more common sense approach and taking advantage of both print/mail media as well as  electronic media.  But there is no question more and more items are moving to the web, especially with the new viewers and flash based movies, as well as social media.

Grant reports

To a certain degree, the move toward email-only communication is becoming less of a choice for gallery owners and, by extension, for artists. Fewer and fewer actual and prospective collectors offer their traditional home addresses and home telephone numbers on those sign-in books at the gallery desk or when they meet dealers at galleries or art fairs, preferring the more anonymous cell phones and email addresses. Jessica Martin, a painter in Healdsburg, California, stated that between one-quarter and one-third of her mailing list is email addresses only, and she claimed that "the Internet is the primary source of information for more and more of the people interested in my work." The artist sends "physical announcements" - postcards and flyers - for major events, such as solo exhibitions but emails for everything else (inclusion in a group show, updates about her career, notices about newly produced paintings, new galleries representing her work). When people on her mailing list move, the postcards are often returned by the postal service, "but people keep their email addresses, so they get the information anyway."

These modern forms of communication allow would-be buyers to be more accessible wherever they are and whatever they are doing, and it is also a way of being "green" by opting out of the cut-down-trees system of information dissemination.

Sometimes, of course, round-the-clock accessibility sounds better than it actually is. "I called up one collector on his cell phone to ask, 'Are you still interested in that $35,000 painting?' and he said, 'I'm in the bathroom now,'" Louis Newman, director of New York's David Findlay Jr. Fine Art, said. "Another time, I called up a collector who told me that he is in his doctor's office." After that, Newman specifically began to request land lines when asking for contact information of gallery visitors and collectors. Those kinds of awkward moments occur with increasing regularity these days. "It's not a big deal," said Andrew Witkin, director of Boston's Barbara Krakow Gallery who has had similar experiences. "Everyone's polite and understanding."

To read the full article, click HERE.

Wedgwood Museum in Jeopardy

The Art Newspaper is reporting the Wedgwood Museum in England may be in jeopardy. Depending upon how the courts rule, the contents of the museum could be sold to satisfy the pension plan funding of the now bankrupt parent company. According to the article the pension fund is underfunded in the amount of 134 million pounds, or approximately $209 million.  The article estimates the museum collection is worth approximately $23 million and includes 8,000 ceramic and 75,000 manuscripts.

The Wedgwood/Waterford factory was sold to a New York equity firm, KPS Capital Partners, and is currently in operations today.

The Art Newspaper reports

Because of the pensions issue, the Wedgwood Museum Trust was itself put under administration in January, and it is temporarily run by insolvency practitioner Begbies Traynor. The next stage is for the courts to decide whether the museum’s assets could be seized. This is a complex legal matter and is likely to require a detailed hearing to resolve this autumn. In the meantime, the museum remains open to visitors, as normal.

If the courts rule that the pension plan trustees can claim against the museum, then “we would consider launching a public appeal to raise money to buy back the collection, and to request time for this to happen,” said Begbies Traynor executive Bob Young. An application might also be made to the Heritage Lottery Fund (HLF), which supported the redisplay of the award-winning museum.

Although the value of the collection is unknown, we understand that it is around £15m. It comprises 8,000 ceramics, 75,000 manuscripts, and paintings including works by Stubbs and Reynolds. These were brought together by the Wedgwood company as a museum in 1906.

Click HERE to read the full article.

Update: Senator Reid Letter

I was able to find the appraiser who wrote the letter to Harry Reid (click HERE to read original post), and a response was sent stating they would look into the suggesting and consider the ramifications.  That might sound like a typical bureaucratic response, but also keep in mind the full letter and Harry Reid's request to the Treasury Asst Secretary was published on the Planned Giving Design Centers website.

Perhaps the request is being taken seriously, and it certainly does make sense.

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Wendell Garrett of the Magazine Antiques called the 2008 edition of the Journal of Advanced Appraisal Studies "Sound in scholarship, lively in presentation, sharp in focus. These articles bring to life the accuracy, interest and importance of judging and evaluating the practice of appraising. A must have for anyone in the appraisal field." Click HERE to read the Maine Antique Digest review of the 2008 edition.Click HERE to read a full article from the Journal by Jane Brennom on Appraising vs Authenticating.

The opportunity to order the Journal of Advanced Appraisal Studies (all editions 2008, 2009 and 2010) with free shipping is about to end.  Order before Monday, August 23rd in order to take advantage of free shipping. Order at www.appraisaljournal.org

All proceeds from the sale of the Journal support the educational initiatives and scholarships of the Foundation for Appraisal Education. The cost of the journal is only $55.00, a bargain for the amount of content supplied ($35.00 for 2008 & 2009).  For more information visit www.appraisaljournal.org to order your copy.

More on Adams Photos and Uncle Earl

Fellow appraiser Louise Allrich, ASA sent me two additional links on the intersting story of the near Ansel Adams glass negatives. The first if from the UK Daily Mail, the second is from the LA Times.  Both are interesting to read.

The UK Daily Mail stated

The only fly in the ointment for Mr Norsigian is that Adams' family has cast doubt on the find.

And now relatives of a nature photographer called 'Uncle Earl' or 'Pop Laval' have claimed he took the images.

Miriam Walton says her uncle Earl Brooks, an amateur photographer who lived in California in the 1920s - the decade experts said the photos were taken - is behind the images.

The 87-year-old from Oakland, California, saw the photos in news reports and called in experts to study some of the snaps she owned, specifically that of Jeffrey Pine, a much-photographed tree on top of Sentinel Dome at Yosemite, California.

'I'm looking at the picture that's hanging on my wall and I knew that Ansel Adams didn't take them,' Mrs Walton said.

'I knew my Uncle Earl took them.'

Read more: http://www.dailymail.co.uk/news/worldnews/article-1299227/Has-Ansel-Adams-mystery-garage-sale-negatives-solved.html#ixzz0wzKhYvPd

For the UK Daily Mail click HERE.

The LA Times reported

Nichols told The Times last week that the slight differences in the tree's shadow and the clouds behind it were probably caused by a short time lapse between the taking of each picture. Everything else -- the focus, brightness and angle, were the same. It was the best evidence yet, he said, of what he and other dealers, as well as Adams' family and professional circle of former assistants already had concluded: that Norsigian's negatives had been shot by somebody other than America's greatest nature photographer.

On Friday, Nichols sent digital images of Marian Walton's four pictures to William Turnage, Ansel Adams' former business manager and now managing trustee in charge of granting the rights to publish or copy Adams' work, and to Alan Ross, John Sexton and Rod Dresser, photographers who worked closely with Adams as his assistants during the 10 years before his death in 1984.

Last year, Norsigian's team sent Ross 61 of the images, hoping he would confirm that they had been taken by Adams. He didn't. So, Ross was able to make comparisons not just between Walton's prints and the 17 pictures Norsigian had published, but also to most of the Norsigian find.

The findings: One of Walton's prints, showing Old Inspiration Point road in Yosemite, is a seemingly identical match to an unpublished Norsigian image, Ross and Sexton said in e-mails that Turnage shared with The Times.

For  the LA Times, click HERE.

Sen Harry Reid Forwards Appraisal Letter

Fellow appraiser Maureen Heenan, ISA AM sent me some interesting appraisal related material from the Planned Giving Design Center.  I have posted information from the site in the past on the AW Blog, but what Maureen sent me was very interesting.

An appraiser sent a letter to Senate majority lead Harry Reid of Nevada about expanding the rules for qualified appraisers and appraisals into estate appraisals.  The letter states with the current review of estate tax legislation, an addition to include qualified appraiser and appraisal requirement would make much sense. The appraiser who wrote the letter states they are an ISA member. The current IRS code is  designed for charitable donations and not for estate tax.  Reid forwarded the letter to Michael Mundaca, the Assistant Secretary of the Treasury for Tax Policy and requested a response to the constituent and copy to the Senator.

The Planned Giving Design Center website states

Senate Majority Leader Harry Reid (D-NV) has forwarded to Treasury for review correspondence sent to him by a constituent. The constituent, who is a Certified Personal Property Appraiser, recommends that appraisers and appraisals of personal property for federal estate tax purposes meet the same "qualified" appraiser and appraisal requirements applicable to charitable contributions and that any future estate tax reform proposals include such provisions.
[Planned Giving Design Center]

Full Text:

July 12, 2010

The Honorable Michael Mundaca
Assistant Secretary of the Treasury for Tax Policy
U.S. Department of the Treasury
1500 Pennsylvania Avenue NW
Washington, D.C. 20220

Dear Assistant Secretary Mundaca:

Enclosed is a letter from my constituent, * * *, regarding valuations used for estate tax purposes. I would appreciate your reviewing the matter and responding to my constituent's concerns. Please reply to * * * directly and send a copy of your response to me.

Thank you for your cooperation and assistance.

Sincerely,

Harry Reid
United States Senator
Nevada

To read the letter from the appraiser to Senator Reid on the Planned Giving Design Center website, click HERE.  Although a small matter like this given Senators position as majority leader and current re-election campaign there may not be much follow through, but I will try to see if there is a response from the Assistant Secretary of the Treasury, and if so post the response on the AW Blog.

(If the sender of the letter is a reader of the AW Blog, please let me know and keep me updated on any response.)

Ansel Adams or Not

Fellow appraiser Francine Proulx, ASA, ISA AM sent me an interesting article from the NY Times on a box of glass photo negatives purchased 10 years ago at a yard sale for $45.00. The story has all that we have come to expect, and perhaps even more from these yard sale "discoveries".

We have the dealer/appraiser with background issues and who states he is “Los Angeles’s leading appraiser of all genres of fine art and celebrity memorabilia.” , there are attorneys involved, claims of the negatives being by Ansel Adam (or at least the "sort" produced by Adams) and worth $200 million, Adams grandson saying they are not by Adams and that the authentication was more of a scam, as well as claims they are actually by an amateur photographer.

It would be hard to make this stuff up.

The art debate has its roots in Mr. Norsigian’s purchase of the box of negatives, a rummage-sale find that took on a new light when he later noticed in an Adams biography that certain features of the plate-glass negatives he bought, which depict California landscape scenes from Carmel, Yosemite and around San Francisco, seemed to match events in in Adams’s life. In particular, the plates showed evidence of fire damage, and in 1937 Adams lost negatives to a darkroom fire.

“The size, the fire damage, the locations and different stuff like that,” Mr. Norsigian said. “I kept researching little pieces at a time.”

He took his discovery to members of the Adams family, who disputed his claims. Adams had been notoriously protective of his negatives, locking them in a bank vault when he lived in San Francisco. Would he misplace a box of negatives?

“Ansel would never have done something like that,” said William Turnage, managing trustee of the Ansel Adams Publishing Rights Trust, which owns the rights to Adams’s name and work.

But in 2007 Mr. Norsigian and Mr. Peter, his lawyer, set about organizing an authentication team that included a former F.B.I. agent, a former United States attorney, two handwriting experts, a meteorologist (to track cloud patterns in the images), a landscape photographer and a former curator of European decorative arts and sculpture for the Museum of Fine Arts, Boston.

They concluded, without question, that the prints were of the sort made by Adams as a young photographer in the 1920s.

Mr. Peter said he decided to market the materials through Mr. Streets, whom he did not know but whose work as a dealer he was aware of. Mr. Streets, who moved to California from New Orleans in 2005, bills himself as “Los Angeles’s leading appraiser of all genres of fine art and celebrity memorabilia.”

To read the full article, click HERE.

US to Afghan Rug Weavers

The Washington Post carried an article on the Afghan war and aid that is meant to help the rug weaving economy.  According to the article, many rugs are woven in Afghanistan but most are shipped to Pakistan for the final process of washing and finishing.  The US is about to grant a $1 million contract to assist the weavers in Afghanistan wash and finish the rugs.  The contracts was designed so specifically it was meant for only one person, London-based Richard Ringrose, who for many years was the vice president for Oriental carpets at New York's ABC Carpet. The contract seems to make sense, but then the article points out the outsourcing the finihsing and washing process is usually less expensive in Pakistan as wages are lower and the weather is more conducive to the process.

Regardless of the politics involved, I found the article very interesting.

In Afghanistan, the challenges are different. There is no Afghan "brand" for rugs on the worldwide market. And instead of mass-production factories, the country has a cottage industry of weavers working mostly out of their homes. Ninety-five percent of the rugs produced in Afghanistan are shipped to Pakistan for washing and finishing, then labeled "Pakistani" rugs, according to a 2006 report by the USAID-sponsored Afghanistan Competitiveness Project.

Unwashed and unfinished Oriental rugs are essentially diamonds in the rough, and defense officials said as much as 40 percent of the wholesale value of an Afghan rug is lost to Pakistan. Moreover, each carpet requires seven or eight people for washing and trimming -- jobs that are also being lost to Pakistan.

Ringrose, under Pentagon contracting rules, was prohibited from speaking publicly with a reporter. The defense official and a person involved in the contract said that Ringrose would seek in the next year to establish training facilities for washing and trimming in Mazar-e Sharif and Herat, where much of the Afghan carpet weaving is centered. He will also create an Istanbul "hub" where foreign buyers unwilling to travel to Afghanistan could examine the merchandise.

The hope is that each facility would generate $20 million to $30 million in business, the defense official said.

The 2006 report, however, noted that Pakistan dominates the washing and trimming business because it has several advantages over Afghanistan, including lower wages and warmer weather, allowing for quicker drying. The report said such facilities in Mazar-e Sharif would need to use heaters indoors or close for at least two months in the winter.

To read the full article, click HERE.

Update: Park West vs Fine Art Registry

The Detroit Free Press has been a good source of information on the litigation between Park West Gallery and Fine Art Registry.  Teri Franks of the Fine Art Registry also has a statement on the FAR website. The following excerpts are from Teri Franks at FAR and the Detroit Free Press article on Judge Zatkoff's recent ruling vacating the juries decision and ordering a new trial.  Each of the statements sheds additional information and commentary on the judges decision to vacate.

As was the case after the initial verdict, Park West stated they would appeal, attorneys for Fine Art Registry will appeal the judges decision to vacate the juries decision as well.

Some legal experts state in many of these situations the two parties typically will settle before a retrial.  Those involved in the case state they will not settle, so we can probably expect another trial.

Teri Franks of the Fine Art Registry states

Suffice it to state that it is my opinion and the opinion of many others that the Judge's order is utterly one-sided, colored, and exceedingly distorted. We will appeal seeking to have the Judge's ruling reversed and the jury verdict reinstated.

The truth is a defense to defamation. During the trial, I was precluded and in fact stripped of my right to present the truth regarding Park West Gallery's unfair and deceptive trade practices through relevant testimony and key evidence--nearly all of the damning evidence I had gathered about Park West Gallery over the last three years was stricken--all of the documents redacted so much so that one could not even recognize them from the original. All of it taken completely out of context by the Park West lawyers.

Much to my shock, it wasn't until after the trial that it was revealed to me that there might be a "special relationship" that exists or existed between Park West Gallery lawyer, Rodger Young and Judge Zatkoff. Given Zatkoff's recent ruling, it will now be necessary to follow up on the details of this disclosure, especially given my recent discovery of the relationship between Rodger Young and Michigan Attorney General, Mike Cox. (See my recent videos on the Mike Cox race for Governor and Rodger Young's involvement.)

In any event, eight jurors sacrificed 5 1/2 weeks of their time to render a verdict in this case. It was the right verdict and it should not have been disturbed--not by Zatkoff anyway. Learn what a juror had to say about the Judge's order in my video that will be published soon. Why have a jury trial at all when a Judge can instantly render the verdict void with the flick of his pen. It's insanity and it's an outrage for the jurors who served and for the Michigan taxpayer who footed the bill for this trial.

To read the full statement by Teri Franks of FAR, click HERE.

From the Detroit Free Press

His decision thrilled Park West founder Albert Scaglione and his lawyers, Rodger Young and Jaye Quadrozzi of Southfield.

"We felt it was an egregious case of misconduct on the part of the defendants and the defendant's lawyers. We are delighted the court has agreed with us and look forward to a new trial," Young said, adding that he's confident of winning the case on retrial.


Payton called the decision unfair and vowed to appeal.

"We think the decision is certainly one-sided and doesn't consider all of what went on at the trial," he said. "We made mistakes, but so did they, and the judge overlooked them."

Franks launched an Internet crusade against Park West in 2007 after hearing from customers who said Park West overcharged them for mostly worthless artwork.

She has posted more than 200 articles and videos and helped customers obtain more than $2 million in refunds.

Scaglione sued her for defamation, saying she cost him $46 million in losses and fueled more customer suits. Several lawsuits are pending in Oakland County and Washington state.

In late April, a jury in Zatkoff's case unanimously rejected Scaglione's defamation claims against Frank and awarded her $500,000 for trademark infringement. The jury said Park West created a Web site with a name similar to that of Frank's to lure away her users and berate her.

Zatkoff's decision voided the $500,000 damage award.

It's unusual for a judge to throw out a jury verdict, especially after a costly 5 1/2 -week trial, legal experts said.

Carl Tobias, a law professor at the University of Richmond in Virginia, said judges will do it if they think the lawyers' conduct has unfairly influenced the jury.

Michael Downey, a practicing lawyer who teaches legal ethics at Washington University law school in St. Louis, said it's not unusual for such cases to settle before retrial.

But Young said he and Park West have no intention of settling.

To read the full Detroit Free Press article, click HERE.

Christie's Announces First Half Results

The Antiques Trade Gazette reports on the first half 2010 earnings for Christie's.  Sales volume is up 46 percent over the same period for 2009.

Chrisites totaled $2.3 billion in sales in the first six months of 2010, with Sotheby's close behind at $2.2 billion.

The ATG report is short, so I will post in its entirety.

CHRISTIE’S have announced worldwide sales of £1.7bn ($2.57m) for the first half of 2010 – 46 per cent up on the same period for 2009.

With £1.53bn ($2.3bn) of that from auction sales, Christie's claimed a 51 per cent market share against Sotheby's, who declared £1.46bn ($2.2bn) for January to June this year.

For Christie's, sales in the UK and Continental Europe remained stable, with just a one per cent rise to £650.3m, but sales in the Americas more than doubled to total £666.4m. Totals were further boosted by a 132 per cent leap in Hong Kong, with £200.5m in sales.


New York's Modern art sales were instrumental in reviving the company's fortunes; the £65.1m hammer taken for Picasso's Nude Green Leaves, and Bust, which set a record for any artwork sold at auction when it sold on May 4, capped a string of record prices for Modern masters.

Sotheby's, as a publicly quoted company, shed more light on actual company revenues, and these saw a healthy 73 per cent rise to £253.8m ($383.3m) for the first half of 2010, with a net profit of £55.7m ($84.1m), turning around a £14.8m ($22.3m) loss for the same period in 2009.

Like Christie's, Sotheby's pointed to the bounce back of Impressionist, Modern and Contemporary art. Both auction houses noted the importance of Chinese art and the growing significance of their Hong Kong sales.

Free Shipping Soon to End

The opportunity to order the Journal of Advanced Appraisal Studies (all editions 2008, 2009 and 2010) with free shipping is about to end.  Order before August 23rd in order to take advantage of free shipping. Order at www.appraisaljournal.org

All proceeds from the sale of the Journal support the educational initiatives and scholarships of the Foundation for Appraisal Education. The cost of the journal is only $55.00, a bargain for the amount of content supplied ($35.00 for 2008 & 2009).  For more information visit www.appraisaljournal.org to order your copy.

UPDATE: Lehman Collection

Scott Reyburn of Bloomberg reports on the fall auctions that will be selling portions of the Lehman Brothers art collection.  Sotheby's NY, Freeman's in Philadelphia and Christie's London will both be involved in selling portions of the 1,000 lot collection.  Creditors of Lehman Brothers may see close to $16 million from the sale which includes work by Damien Hirst, Lucian Freud, Andreas Gursky and Gary Hume. The lots for these sales will be mixed in quality, with Christie's having 30% of its lots estimated under 1,000 pounds (approximately $1,560.00). Some minor lots have already been sold at earlier sales at Freemans with the sales performing better than expected. It will be interesting to see if the trend of continues.

Reyburn reports

About 250 further pieces from the Neuberger Berman and Lehman collections will come up for sale at Freeman’s in November. Freeman’s said that the lots are mostly contemporary works on paper produced during the last 10 years and are expected to raise between $250,000 and $350,000.

The Philadelphia auction house last year sold four groups of ex-Lehman artworks for a total of $2.2 million. More than 50 artists’ records were set and all of the lots were sold, said Freeman’s in an e-mailed statement.

Trophy Buys

“We had a lot of new buyers,” Anne Henry, the company’s vice-president of modern and contemporary art, said in an interview. “Some were bankers looking for trophies. Others were people who thought that if it was good enough for Lehman, then it was good enough for them to dip a toe into art collecting. Provenance had everything to do with it.”

Lehman’s creditors include Goldman Sachs Group Inc., UBS AG, the New York Giants and Abu Dhabi Investment Authority as well as individuals who hold Lehman bonds.

The bank has said it may spend five more years selling assets to pay unsecured creditors as little as 14.7 cents on the dollar.

To read the full article, click HERE.

Excerpt from the Journal of Advanced Appraisal Studies - 2010

Time for another excerpt from the 2010 edition of the Journal of Advanced Appraisal Studies. Art appraiser Judy Nelson, ISA AM writes an articled entitled Reading a Two-Dimensional Artwork: Suggestions for the Generalist Appraiser.

This article, similar to last weeks article by Brian Kahtenes on coins and stamps is meant to be a guide in assisting the generalist appraiser.  They are to be used as a tool to assist in determining the level of quality and condition and scope of work for the generalist appraiser.  The generalist needs basic levels of knowledge to assess assignments and also needs to know his or her own competencies for when to consult with an expert.

I very much liked Judy's article and the way she describes how to look at a painting. Next weeks excerpt will be Personal Property Appraising and the Element of Time.

Judy Nelson writes

Generalist, antique and residential contents (ARC) appraisers often
come across works of art in the course of appraising estates or household contents. Most of these works fall within the realm of decorative art valued at under $3,000, but appraisers must be careful not to make assumptions of value based on cursory observations. As noted above, failure to recognize quality artworks and to properly value them not only hurts the client but opens the appraiser to potential legal proceedings.

Fine art appraisers encourage the generalist or ARC appraiser to re-
fer these items to them, not only because they are trained in art identification and evaluation, but also because they have specific knowledge of the unique markets involved and established relationships with art dealers, artists and art specialists.

The objective of this article is to provide some points for those appraisers who do not specialize in art to consider when appraising a work of art. Further, the following remarks pertain to late nineteenth and twentieth century paintings and works on paper. These items – mostly representational rather than abstract - are routinely encountered by the generalist or ARC appraiser in the course of appraising households for various intended uses.

Of course, the ideal art appraisal involves a work by a “first-tier” or
“listed” artist with a recognizable signature, active secondary market and/or gallery representation, auction records, provenance and inclusion in numerous reference materials. However, appraisers often encounter the opposite – a work by an artist for whom there are few or no records to guide the appraiser in establishing a supportable valuation. In this situation, the appraiser may look for comparables based solely or primarily on subject matter, style and approximate date of creation. While this is a start, a more accurate valuation may be obtained by examining and factoring in additional indicators of value.

If there is so little information on the artist, one may ask why an appraisal is either indicated or desired. An appraisal is often needed for insurance coverage or for damage claims. Sometimes the art in question is part of a collection or estate where family members may be seeking a means of equitable distribution. And there is always the client who is curious about the value of a work in his possession.

Another objection that may surface is whether there is, after all, much difference in value between a relatively little-known artist’s work and that of any other artist working in the same style and within the same time frame. Is it worth the extra time it may take the appraiser to evaluate the work? Yes, because the formally-trained professional artist will almost always produce a work which is more successful than the amateur or hobbyist, whose training may run from none to extensive. The professional’s work will command a higher value.

All proceeds from the sale of the Journal support the educational initiatives and scholarships of the Foundation for Appraisal Education. The cost of the journal is only $55.00, a bargain for the amount of content supplied, and for a short time shipping is free.  For more information visit www.appraisaljournal.org to order your copy.

Update: Park West Gallery - Appeal Verdict

I have just heard from one of the witnesses from the Park West/Fine Art Registry lawsuit that the $500,000.00 awarded to Fine Art Registry has been overturned on appeal, and the judge has ordered a new trial. Federal Judge Lawrence P. Zatkoff of the United States District Court for the Eastern District of Michigan was the appeals court judge and also the presiding judge at the trial. If you recall, the award to the Fine Art Registry was based on trademark infringement and immediately after the initial verdict Park West said they would appeal. Other parts of the verdict harmful to Park West were also overturned, leaving only the defamation acquittal of Bruce Hochman.

The Michigan Lawyer blog posted some of the Judges comments on the appeal verdict, and they are a rather strong rebuke of Fine Art Registry.

According to The Michigan Lawyer blog

On Aug. 12, Hon. Lawrence P. Zatkoff of U.S. District Court for the Eastern District of Michigan vacated the jury’s verdict and ordered a new trial. He said that FAR founder Theresa Franks and counsel Donald L. Payton and Jonathan H. Schwartz “engaged in persistent misconduct in front of the jury throughout the trial, and it would be fair to characterize the misconduct as ‘contumacious conduct.’”

For one, Zatkoff wrote, “counsel violated the Court’s in limine ruling regarding other legal disputes involving Plaintiff.”

Then, “Franks’ complaints that Plaintiff’s counsel was taking things ‘out of context’ and giving the jury only ‘bits and pieces’ are indicative of how she repeatedly attempted to prejudice the jury regarding rulings Plaintiff had appropriately obtained from this Court. … [T]here were many other times (both when she was called by Plaintiff and by her own counsel) that Franks’ testimony went far beyond what was appropriate or acceptable.”

And, during defendants’ opening statements, 15 newspapers and television stations that had written articles or aired shows about Plaintiff’s art cruises were mentioned. Because of that, “Plaintiff suffered the stigma in the jury’s eyes each time Plaintiff had to object to such reports during testimony,” and “the reading of the media reports was improper in light of the manner in which the FAR Defendants subsequently attempted to introduce them.”

I dont have many of the details but as soon as I get additional information and  confirming reports I will post to the AW Blog.

Stay tuned!

Clarifications on Haunch of Venison and Robert Goff

The other day I posted about a NY Observer article on gallerist Robert Goff and Christie's owned Haunch of Venison.  Goff is joining Haunch as a Director in the fall.  After posting on the NY Observer article I was contacted by Prentice Art Communications, Inc who is representing Haunch with some clarifications to the article. The following is the Media Alert from Haunch on Robert Goff as sent to me by Prentice Art Communications.

Gallerist Robert Goff to Join Haunch of Venison

Emilio Steinberger and Barrett White are pleased to announce that gallerist Robert Goff will join Haunch of Venison New York as a Director in the fall. Goff is a respected member of the art community whose eponymous gallery was best known for cultivating strong relationships between their artists and the curatorial and museum communities, an objective that remains continually important to Goff in his new role at Haunch of Venison. Before entering the gallery world, he spent three years at Forbes Magazine as a journalist reporting on collectors, collecting and the auction business before joining EyeStorm as its Vice President of Business Development. Artists whose careers Goff has carefully managed for years, including Isca Greenfield-Sanders and Ahmed Alsoudani will be incorporated in Haunch of Venison's global gallery program. In addition to continuing to manage these artists, Goff will focus on facilitating private sales and bringing exciting new artists like Susanne Kuhn and the sculptor Kevin Francis Gray into the program.

For information please contact Bettina Prentice at Prentice Art Communications, Inc:
T (212) 228-4048
E bettina@bettinaprentice.com

Art Market Analysis

I think it is great the NY Observer is taking the art market seriously and is starting to report on the fine and decorative arts. Alexander Peers has an interesting article in the NY Observer, including an interview with Sergey Skaterschikov. Skaterschikov analyzes the art market, particularly Russian art. His company, Skate's Art Market Research performs research on both art market and individual artists, produces research reports for collectors and operates an art market stock fund.

Skaterschikov has some interesting perspective on the art market, including why gallery sales are still struggling when compared to the large international auction house and private sales.

The interview is interesting as Skaterschikov reveals how he formed his client base and points out the importance of Russia buyers in the art market.

Peers reports

Sergey Skaterschikov has an unusual specialty: art-market analysis. Almost unheard of two decades ago, it is a rapidly expanding field. But the Moscow-born Mr. Skaterschikov's particular expertise is the Russian buyers who have played an increasingly pivotal role in the past five years of art buying, especially at the top end. With sponsors that include Russia's largest commercial bank, Alfa, he founded the Insiders Club in Moscow, an art discussion group for the high-net-worth set.

His six-year-old company, Skate's Art Market Research, has a partnership deal with collector Peter Brant's Brant Publications and a database of the 5,000 most expensive artworks. It rates the market performance of artists, produces research reports for collectors on individual paintings and runs an art-stocks index based on the few publicly traded art-business companies.

To read the full article and interview, click HERE.

Help for Phillips de Pury

Art Net's digitgal magazine has a good humor piece on Phillips de Pury.  It is a top ten list on how to save to assist the contemporary art auction house.  I will post in its entirety, some of the items on the list are rather  amusing.

The new Phillips de Pury & Company space opening on 57th Street and Park Avenue this September, advertised with smashing photo-blow-ups in the windows of Warhol's Jackie and a Richard Prince Nurse, thrills me every time I pass it. But I sink into sadness when I read of the house's weak auction results, and consequently I rack my brain as to how to juice up the auctioneer’s performance.

So here goes:

1) CHANGE ITS NAME. to PdeP and market a whole line of PdeP handbags and accessories plus SIMON cologne, with the slogan SIMONIZE Yourself.

2) HAVE JERRY SALTZ MAN THE DOOR AT THE EVENING SALES. For a huge fee, the popular TV personality could broadcast live from the PdeP red carpet.

3) RAFFLE OFF A WARHOL. With PdeP paying the taxes and the lucky winner agreeing to hold onto the piece for a decade, people would flock to the space.

4) SELL A PIECE OF PdeP TO JAY Z. The NBA Nets have the worst record in basketball -- but now that a Russian mogul and the popular rapper have bought the team, they could sign Chris Paul.

5) USE CELEBRITY AUCTIONEERS ONLY. Lady Gaga, Robert Pattinson, Betty White, Scott Brown, all preferably nude.

6) BAN CAROL VOGEL FROM THE EVENING SALES. Nothing says "publicity" more than shutting out some big-shot reporter.

7) STOP AUCTIONING ART FOR A YEAR. Auctioning other stuff like cruises, condos, dresses and baseball cards will create pent-up demand.

8) AUCTION ONLY WORK BY BLACK ARTISTS. Even though the jazz art sale at Swann (regrettably) tanked, there's gotta be a way to skim the bling crowd.

9) DO A BIG BUCKS FUNDRAISER FOR BARACK OBAMA. The way things are going for our harried Prez, by next year he may actually need it.

10) TURN THE PLACE INTO A TV STUDIO FOR SIX MONTHS. And film a reality show called "Big Brother Survives a Work of Art," in which major art-world personalities are forced to live with work by Thomas Kinkade, Peter Max, Norman Rockwell and Victor Vasarely until they pay top dollar to bid their way back to freedom. That should put PdeP in the black!

Chrisitie's Expanding its Art Gallery

Alexandra Peers, writing for the NY Observer reports that Haunch of Venison, the art dealer owned by Christie's is purchasing Chelsea Gallery Robert Goff. It is reported that Haunch will leave its Rockefeller Center Gallery and reopen in Chelsea with the addition of Goff and several of his artists. Goff is to remain as director of the newly located New York Haunch gallery.

As I have mentioned several times on the Appraiser Workshops blog, Christie's has been very aggressive in expanding its art related, but non-auction ventures.  Peers also notes that since taking over haunch many fairs have not allowed Haunch to display, considering the gallery as a front for the auction house and private sales division.

Peers reports

Goff said he was approached by Haunch to show his artists in London and asked himself: "How to I grow as a gallery and not have these artists poached in the next few years? The only thing I had stopping me was my name on the door, and I decided that wasn't important." He added: "I think that's part of why they wanted me, as I had run a Chelsea gallery." Haunch also has galleries in London, Berlin and Zurich.

In 2007, Francois Pinault's Christie's International (parent of Christie's auction house) bought the London gallery Haunch of Venison, which represents Bill Viola, Richard Long, and Keith Tyson. It seemed a savvy move for Christie's at the time: Collectors traditionally turn to selling through dealers, not at auction, when prices weaken. Haunch then opened in the fall of 2008 in a 17,000-square-foot duplex penthouse atop the same building as Christie's headquarters. Its early shoppers included Roman Abramovich, the Russian billionaire.

But Haunch was barred from exhibiting at some key art fairs and was plagued by rumors (as it continues to be) that it was a front for the auction house's contemporary art division. Because Haunch handles all of Christie's private sales, it never seemed a stand-alone gallery, despite some very good exhibitions. Goff stressed: "I'll be managing my own artists." Goff's better-known artists include Ahmed Alsoudani, who is collected in the Middle East, and painter Isca Greenfield-Sanders, daughter of noted photographer Timothy.

To read the complete article, click HERE.

Courtroom Art

Courtroom art, perhaps a new sector in the Fine Arts.  Daniel Grant has an interesting article in the Wall Street Journal about courtroom artists.  From an appraisal perspective, the value is rather low, but many of the courtroom artists do find a market for their work in addition to the pay they getting for the drawings.  Sometimes it is lawyers and judges whom they draw during the course of the trial.  Some of the artist state they can draw anywhere from $500.00 to $1,500.00 for the drawings.

One artist mentions the courtroom drawings are not quite fine art and not really illustration art either, and that galleries dont know what to do with works.  Some of the courtroom artist charge $500.00 to $650.00 per day per client.  If drawing for multiple clients, the days pay could total a nice sum.

Grant states

When the hearing ended, Ms. Cornell, Ms. Rosenberg and all the other courtroom artists in attendance rushed outside, where photographers were waiting to take pictures of their sketches that could be transmitted quickly back to the newsrooms. Sometimes, they can lean the drawings up against a wall, or someone brings an easel. On occasion, things get a bit fancier. For the 2005 child-molestation trial of Michael Jackson, a booth with lighting was set up outside the courthouse for Sacramento, Calif., artist Vicki Behringer's watercolor scenes of the trial. Undoubtedly, you saw those pictures, too. You take in the visual information, not giving a thought to what it must be like to hold a palette in your left hand, painting with your right and praying that no one jostles you, causing the bottle of water in your bag to spill. "The look of courtroom art in New York is pastel," Ms. Behringer said. "The look in California is watercolor."

She noted that "I really haven't had many accidents. Pastels are messy, and the pastel dusts make me cough. Watercolors, on the other hand, dry quickly, and you can apply large swaths of color."

For courtroom artists, the work is sporadic (a celebrity in trouble with the law helps), and it is most lucrative when a number of different news outlets call on a single artist. Bill Robles, a courtroom artist in Los Angeles who has covered the trials of Jackson, Patty Hearst, Rodney King and Timothy McVeigh, noted that he is paid between $500 and $650 per day (the more network affiliates use the story, the more he receives) per client. He covered the U.S. government's lawsuit against Arizona's new immigration law for eight different news outlets, which he called "a very good day's work."

To read the full article, click HERE.

Tech Tip: Google Maps

Google never ceases to amaze me.  I received a phone message from a Google rep the other day saying Google photographers were in the Alexandria, VA area and I was on the schedule for photographs of my shop interior and exterior to be placed on Google Maps and Google Business.  The photographer was in today and stated he could take images of my shop for the listing and would include a virtual 360 degree interior view as well.  They take four wide angle shots and stitch them together.

When Google maps is searched for Antique Dealers for Alexandria, VA my shop will come up with the images of now not only the exterior, but also the interior, showing the type of antiques I sell. Plus the listing is free.  This must be costing Google a lot of money, as they had 6 photographers in Alexandria for the 4 days or so.  Each photographer can process about 6 shops in a day.

I am not sure if Google is doing this only in metropolitan areas or not, but if you have a shop or gallery the benefits of the listing could be great.  The listing is free, if you are interested call 1-877-737-8518  for more information.  For more information go to Google Maps, there is a link for putting businesses on Google Maps/Google Places.  Click on HERE for more information on Google Maps and Places.

It is all about getting noticed and this is one way of increasing your profile.

American Folk Art Museum Struggles Continue

Kate Taylor has a good article in the NY Times about the ongoing difficulties at the American Folk Art Museum in New York City.  According to the article, the museum is current in its debt payments to bondholders, but is falling behind in debt service payments required by the bond contract.  I assume that is some form of a sinking fund designed to accumulate funds to pay the debt off.  The museum borrowed $32 million through a New York State bond program and is having difficulties servicing the debt.  The Museum is now in the process of negotiating new debt terms.  Taylor states the operating expenses have declined, from $10.3 in 2009, $8.5 million in 2010 and is expected to be $7 million in 2011.  Visitors to the museum has seen growth which is a positive, but it is still far under expectations.

Taylor reports

Among the other cost-cutting measures, the museum has ceased publication of Folk Art Magazine, which went to members, and has begun publishing some of its exhibition catalogs only online. It also decided to stop leasing auxiliary office space on East 52nd Street.

Over the years attendance and revenue figures have fallen far short of the projections made while the new building was being constructed. At that time it was predicted that attendance would reach 255,000 a year by 2005 and generate $1.7 million in revenue.

Actual attendance was half that in 2005, and attendance today, though growing, remains at 160,000 a year. Admission revenue was $306,000 in the 2009 fiscal year, according to the museum’s draft financial statements.

The cost of operating the building, meanwhile, has been higher than expected, and the museum’s tax returns show that in recent years expenses have outpaced revenue. Net assets, which were $26 million in June 2002, had dropped to $3.1 million by June 2009.

One additional revenue source, Mr. Corelli said, may be the sale of the museum’s air rights to Hines, the developer of the planned Jean Nouvel tower on West 53rd Street. Hines has postponed the development of its building, however, because of conditions in the commercial real estate market.

To read the full article, click HERE.

Appraisal Library for Sale

I posted a short while ago about an appraisal library that was for sale.  Steve Minor offered his complete library but was not able to find a buyer.  As noted in that post, if he was unable to sell as a whole he would then offer the reference book collection individually.  He is now selling the books with some very good prices.

Steve is selling them on a first come basis. If you are interested, I would recommend contacting Steve for availability and condition sooner rather than later.  His email address is sgminor@mindspring.com


Click HERE to view the books available and individual prices. Use the slider located in the bottom left corner to increase/decrease view size.

Excerpt from the Journal of Advanced Appraisal Studies - 2010

Brian Kathenes, ISA CAPP writing his third article for the Journal of Advanced Appraisal Studies looks at how to appraiser coins and stamps. Brain gives some excellent tips for the generalist as far as what to look for and how to look at both accumulations of coins and collections of coins. It is an excellent article for the generalist appraiser to be familiar with as it is not uncommon to come across stamp and coin collections.

Next week excerpt will be from fine art appraiser Judy Nelson who writes on Reading a Two-Dimensional Artwork: Suggestions for the Generalist Appraiser. This is an excellent article on how to look at and evaluate paintings.

Brian Kathenes writes:

The quantity of minted coins or printed stamps is not necessarily the
most important factor in establishing value. It is the supply of desirable stamps and coins that create those rare headlines: “Penny Worth Ten Thousand Dollars Found in Gumball Machine.” The most desirable and valuable stamps and coins are usually scarce and in excellent condition.

It is the rarest of coins and stamps in the best of condition that make these items valuable. Rarity and condition are the two major keys that create value in stamps and coins.

Most stamps and coins are not as rare, scarce, or as complex as you might first think.

Knowing just a little bit about them will put you way ahead of the general public and ahead of most appraisers. As in any specialty, a few basic concepts will provide you with a solid foundation in this field.

Early one-cent US coins known as “Indian-head” pennies are great examples of supply and demand. They were minted from 1869-1909 and display the profile of a Native American princess on the front (most folks think it is an Indian Chief). In 1876, approximately eight million of these coins were minted. About six million were minted in 1878. But in 1877 less than one million pennies were minted. The 1877 pennies are valued at approximately ten times more than coins in similar condition from 1876 or 1878. The rarity of this 1877 coin alone makes it desirable.

The condition of coins and stamps is also an important factor. An 1877 Indian-head” penny in “uncirculated condition” (really good shape)can be worth ten times more than an 1877 penny in “good” condition. Superb, uncirculated, 1877 “Indian-head” pennies can be found in coin shops selling for over $2,000.00 – (go get your own comps).

The same supply and demand rules apply to postage stamps. Generally, unused stamps are more valuable than the same stamp in used condition. Stamps in superb condition are usually more valuable than similar stamps in poor condition.

Stamp collectors look for stamps that are well-centered and have even, uniform margins. Stamps that are clean and free of tears are more valuable than their dirty, worn counterparts.

Just because a stamp or coin is old does not mean it is valuable. A coin from the Constantine Period of the Roman Empire, which is about 330-345 AD, is over 1,600 years old. It can be purchased from a reputable coin dealer for approximately $100.00. Although this Roman Empire coin is quite interesting, it is very common. They were sold by the barrel just a fewdecades ago.

A full sheet of commemorative stamps from the 1940s is worth little more than the value of the postage. Dealers are currently paying less than face-value for these common unused stamps. Theses sheets of stamps are available in great quantities and there is little demand for them as collectibles or as postage. You’ll need a huge envelope to hold forty-four cents worth of three-cent stamps.
Identifying the Pile Appraisers occasionally get blindsided by a client just as they are completing a long, challenging, on-site inspection. The client says: “Oh, I almost forgot – just two more items; a coin collection and a stamp collection.” As Charlie Brown of Peanuts fame says: “Arrrgh!”

The very first step in appraising a group of stamps or coins is to identify it as an “accumulation” or a “collection.” A collection is almost always more valuable than a comparable accumulation. There is a distinct difference between a collection and an accumulation. An accumulation is an unorganized batch of stamps or coins. There is no system for cataloging or a system to easily identify what is what.

A typical stamp accumulation is an assortment of big envelopes, folders, and loose items piled into a shoe box or tin. Unused and used stamps are mixed together in one box or folder.

All proceeds from the sale of the Journal support the educational initiatives and scholarships of the Foundation for Appraisal Education. The cost of the journal is only $55.00, a bargain for the amount of content supplied, and for a short time shipping is free.  For more information visit www.appraisaljournal.org to order your copy.

Turning Around the Arts

Jacqueline Trescott has a good article in the Washington Post about Michael Kaiser, the director of the Kennedy Center and author of the The Art of the Turnaround. Kaiser is touring 50 states discussing the state of art organizations and dealing with the realities of the current economy.

Trescott reports that Kaiser promotes the following guidelines for an arts recovery and eventual stability.

• Do not reduce programming. Trim behind the scenes on discretionary items, such as staff travel.

• Plan ahead for four or five years, and then let the public know what's on the drawing board so it will be clear that the organization plans to be around.

• Planning should be done by both large and small groups.

• Develop collaborations with local artistic groups, museums and schools.

• Find and train entrepreneurial managers.

• Develop new streams of revenue.

• Make the board members ambassadors for the work being presented, as well as fundraisers.

To read the full Washington Post article, click HERE. You might have to register to read the full article, but it is free.