NY Auctions May be Forced to Reveal Buyers

I am trying to get more information on this lawsuit, but the Antiques Trade Gazette is reporting a New York court is requiring that auction contracts disclose both the buyer and seller.  The ruling came up in an action brought by William Jenack auctions on an unpaid auction purchase. As the ATG article states, the implications of such a ruling could be very large indeed.  Even the judge stated that given the nature of the auction world, perhaps legislation should be passed for auction houses to be exempt.  Christie's has joined the appeal to try and overturn the ruling.

More news on this when I have it.

The ATG reports

The General Obligations Law states: "Every agreement, promise or undertaking is void, unless it or some note or memorandum thereof be in writing, and subscribed by the party to be charged therewith, or his lawful agent…

"If the goods be sold at public auction, and the auctioneer at the time of sale, enters in a sale book, a memorandum specifying the nature and price of the property sold, the terms of the sale, the name of the purchaser, and the name of the person on whose account the sale was made, such memorandum is equivalent in effect to a note of the contract or sale, subscribed by the party to be charged therewith."

Justice Peter B. Skelos (with three other justices concurring) agreed in his ruling that the General Obligations Law was clear on this matter. He rebuffed the auction house's claim that they had merely followed common practice when they did not disclose the consignor's name (instead the consignor of the Russian box was noted simply with the number 428).

William Jenack's attorneys, Benjamin Ostrer and Cynthia Dolan, argued that the requirement specifying the name of the person for whom they were selling was "satisfied solely by inclusion of the consignor's assigned number on the clerking sheets". Justice Skelos said that was not enough.

"The plaintiff [Jenack] claims that it is common practice for auction houses not to disclose the names of their consignors, and that such disclosure is 'unnecessary'. While it may be true that auction houses commonly withhold the names of consignors, this court is governed not by the practice in the trade, but by the relevant statute.... In that regard, the statute clearly and unambiguously requires that the 'name of the person on whose account the sale was made'... be provided in the memorandum."

Source:The Antiques Trade Gazette