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Judith H. Dobrzynski on Culture

Art Market

Ethics 101 For Dealers: Deaccessioning

Are dealers are “accessories” to an ethical violation if they agree to sell works of art for museums, like the Delaware Art Museum (pictured below), that are selling to raise money for capital or operational purposes? Accessories to criminal acts may, after all, be guilty of an infraction.

That’s the underlying question, but not my point, in a short piece I wrote, published today, on a  a new(ish) website based in London and with an international audience, mainly of art and antiques dealers.

Delaware-Art-MuseumThe site, Art Antiques Design, was started by a former antiques dealer named Elliot Lee, and he describes it as “a virtual meeting place and a connector for art, antiques and design professionals. It is a bridge for integration, learning and dialogue between these three markets.” Lee says he advocates greater transparency in the art markets. 

My piece, headlined Ethics for Dealers: Deaccessioning, was meant to provoke thinking on the issue, not criminalize business. What I learned in the reporting of it is that none of the dealer trade associations I checked with, including the Art Dealers Association of America and the Private Art Dealers Association, mention the issue in their codes of ethics — if they have a code of ethics. Dealers are obviously self-policing, and just obviously these groups could expel a member for bad behavior. But wouldn’t it be better to have something written down?

I did not cover the auction houses in the piece — for obvious reasons. They usually get the business from deaccessioners for any purpose because they seem more transparent than private dealers. In actuality, probably just a little. But they are bigger, corporate businesses, and they’re not going to quibble about the motive of a consignor (most probably).

I’ve written two other short pieces for AAD, both much lighter in topic and tone. One was about Art Everywhere US, here, and the other a trifle on the Jeff Koons handbag offered to Whitney Museum members in an “exclusive” way that was not so exclusive under examination — but was a great marketing tool. 

You might check out AAD. I won’t be cross-posting everything here.

Photo Credit: Courtesy MC McGrath

Detroit Creditors Stir Up More Trouble

Just when things were looking good for the Detroit Institute of Arts, what with pensioners approving the “grand bargain” that allows the DIA to buy its freedom from the city, and with the DIA getting close to its goal of raising $100 million for the grand bargain to work, another creditor has come along to rock the boat.

The Financial Guaranty Insurance Company hired Victor Weiner Associates to assess the value of the collection and, in a rush job, VWA put a total value on it of $8.5 billion. You may recall that another “complete collection estimate” by Artvest of New York was between $2.76 billion and $4.6 billion.

20140709132757_CircumcisionAs the Detroit News, which had the account of the VWA estimate, noted in an article published on Sunday,

The dueling estimates set the stage for a lively battle of experts when the bankruptcy trial before U.S. Bankruptcy Judge Steven Rhodes gets underway Aug. 14.

VMA made a different assumption in its valuation:

The VWA appraisal, conducted with the help of 11 experts in various fields, anticipates that the collection would be used as collateral for a loan to the city, not sold.

This echoes one of five proposals for “monetizing” the collection put forward by Christie’s Appraisals when it issued its report in December. That assessment, which only looked at 2,800 works, or about five percent of the museum’s collection, put the value between $454 million and $867 million.

Artvest assumed a sale, taking into consideration that only so many works could be absorbed by the market at top prices.

One trouble with this estimate, though, is that it was VWA completed it in two weeks, relying on other estimate and not seeing the works in person, for the most part. It also apparently accepted insurance valuations as the correct value for a sale, and the two are not always comparable.

Nonetheless, that big number makes headlines and stirs up trouble for the DIA, both with some segments of the public and probably for its legal team, which may have contend with the number in court.

Photo Credit: Parmigianino’s Circumcision (worth $25 million according to the new report), courtesy of the DIA via the Detroit News

Seizure: Federal Prosecutors Issue Forfeiture Action

Federal prosecutors have filed another forfeiture complaint, this one for a 13th century painting that had been up for sale in the Important Old Masters sale at Sotheby’s in January. Sotheby’s voluntarily pulled the painting and told Courthouse News Service that it had “cooperated fully with the government on this matter.” Sotheby’s has not been accused of wrongdoing. The troubling issues with the work surfaced when Sotheby’s was doing due diligence on the painting.

sothebys-madonna-cimabueCourthouse News said the painting was a “Madonna and Child” (at right) listed in the catalogue as by a “Florentine painter within the ambit of Cimabue.” The painting had “disappeared from a Swiss safety deposit box nearly three decades ago was imported to the United State this year” to be auctioned, according to the forfeiture complaint.

It’s a complicated case, but here’s the gist, quoting from CN:

The complaint details a mysterious Feb. 6, 1991 report that Geneva police provided to Interpol investigating the theft allegations, which appear to involve a squabble over an inheritance from the late Camille Marie Rose Aprosio.

That report is thin on details about the lives of Aprosio and her family, and it is difficult to locate public information about them. Born Aligardi, Aprosio owned half of the painting when she died in 1980, and left her interest to her heirs Paulette and Roger Aligardi, according to the complaint.

These heirs designated as a representative to that interest a man named Henri Aligardi, whose relationship to them is not revealed in the complaint. The other half of the interest belonged to a man named John Cunningham, prosecutors say.

“In or about 1986, Henri Aligardi and Cunningham placed the painting in a new safe deposit box at a separate branch of UBS in Geneva,” the complaint states.

“The heirs of Camille Marie Rose Aprosio reported that Cunningham had also ceded a percentage of his interest in the painting to two other individuals, Michael Hennessy and John Ryan. Hennessy and Ryan subsequently reported that Cunningham had removed the painting from UBS to an account held at Lloyd’s Bank in Geneva and solely in Cunningham’s name.”

But no one appears to know what happened to it since then. And the report did not say who consigned the work to Sotheby’s — or where it is now. But the evidence must be pretty good for the U.S. Attorney’s office to issue a forfeiture complaint.

Photo Credit: Courtesy of Sotheby’s via Courthouse News

The Deathbed Deal With Cornelius Gurlitt

The Wall Street Journal published an excellent narrative of Cornelius Gurlitt’s final days the other day. You can read it here, assuming it is not behind the paywall. But it may, and so I thought I’d relate a few key paragraphs of the story, by Mary Lane and Bertrand Benoit. It documented, as I suspected, Gurlitt’s revenge on Germany.

CGurlittThe article begins:

Cornelius Gurlitt [at left], 81 years old and his heart faltering, in early January called a notary to his hospital bed in southern Germany, determined to write a last will and testament inspired by love and hate.

Mr. Gurlitt—stung by the local government’s seizure of the cache of priceless art that he called his life’s only love and by the world-wide furor over the fact that much of it was snatched from Jews by the Nazis—had two desires: to burnish his family name by giving the trove to a museum and to send it out of Germany….

…Mr. Gurlitt’s decision, people close to him say, reflected in part his alienation from his country and anger at the Bavarian officials who confiscated his collection. At first, he “felt like a victim of Bavaria,” a person close to the collector says. But, as he began “growing paler by the day, he wanted to keep his father’s name from being tarnished and give back the Jewish art.” …

…The government deal, involving Bavarian and national agencies, happened partly because of Mr. Gurlitt’s hope he would see the art again before his death—a wish that went unfulfilled….

Apparently, Germany proposed the donation idea:

In December, a government official involved in the case sat down with Mr. Gurlitt for what the official described as a serene, deeply personal one-on-one conversation….this person suggested Mr. Gurlitt could transfer his collection to a foundation—preferably in Germany—that would restore stolen art to its rightful owners in line with the Washington Principles and show the rest in a state-financed museum. He seemed interested.

A few weeks later, Mr. Gurlitt took the idea but used it to snub his native land.

Gurlitt had only the slightest connection to the Bern museum to which he willed his treasures:

…In 1990, he sold an unidentified artwork for $48,757 via the Kornfeld auction house in Bern and told a lawyer earlier this year that Eberhard Kornfeld, the auction house’s owner, remained an acquaintance. Mr. Kornfeld is a significant patron of the museum. …

2013 became 2014 and:

In February, [Christoph] Edel [Gurlitt’s court-appointed guardian] announced he had removed 60 fresh artworks, whose existence was hitherto unknown, from Mr. Gurlitt’s second home in Salzburg, Austria, and put them into storage. These included a Claude Monet painting that experts valued at $12 million and that had been presumed lost.

…Mr. Gurlitt at the intensive-care unit. Mr. Gurlitt, growing impatient to finalize the talks, instructed his guardian to end [Hannes] Hartung’s [a criminal lawyer who wanted the painting sold, with proceeds going to Gurlitt] contract, which Mr. Edel did on March 27…Mr. Hartung’s dismissal crippled parallel negotiations he had been conducting with French and American heirs to a Matisse painting in the trove, valued at $20 million, [but] it propelled the talks with the government.

…The agreement in which Mr. Gurlitt would pledge to return all stolen works was finalized between the lawyers and the government the first week of April. Mr. Gurlitt asked for the weekend of April 5 to read through the six-page contract. The government negotiators, aware of his declining health, had inserted a clause that would bind Mr. Gurlitt’s heirs.

On April 7 at 1 p.m., in the presence of Mr. Edel, he signed the document, which gave the task force one year to research dubious paintings, with the German and Bavarian governments covering all costs. Mr. Edel called the Bavarian justice ministry shortly thereafter.

Two days later, the prosecutors’ office said it released the art for Mr. Gurlitt to retrieve, citing “fresh elements,” adding that its investigation was continuing. The art remains in a government-rented warehouse.

Mr. Gurlitt remained mentally active throughout the negotiations. Mr. Edel visited him on May 5, telling colleagues he hadn’t appeared weaker than usual. He died the next day.

It’s good reading, if you can get the whole story.

Photo Credit: Zuma Press via the WSJ

 

“Spring Masters” Show Hires Architect To Radically Redesign

SpringMasters1Last year about this time, I wrote here about the Spring Show at the Park Avenue Armory, lauding the use of color on the walls of the booths. This year it was  Spring Masters, New York — they called it and “inaugural fair” as it was under new management, but it is basically a reincarnation of the Spring Show. This year, it had the same array of colored walls — well, maybe a little less flashy: I didn’t see the bright red, yellows and greens that were there last year. But this year it had something else, as its website claims:

SpringMasters2…a design by architect Rafael Viñoly that reimagines the visual impact, layout, and experience of the fair. Viñoly’s design includes hexagonal booths and floor plan that encourage and accommodate an array of presentation strategies. The redesign represents the most significant change in the Armory fair format in three decades…

SpringMasters3So the design — see the map I’ve posted — had two aisles instead of three, and a couple of clusters in the middle. That was supposed to be more relaxing, but I found it a tad confusing — I had to double-back occasionally to make sure I had seen every booth. As for the hexagonal booths, dealers told me they were intended to give them more wall space. Maybe you can tell a little from the pictures I’ve posted. I was told that about 95% of the visitors said they liked it. I didn’t mind the new layout, but I think SOFA, the design show, which had bare floors and very spare booths, was more radical than this. I still like the colors of this show, which when well chosen really bring out the artworks.

SpringMastersmap

 

Photo Credits:  © Judith H. Dobrzynski

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About Judith H. Dobrzynski

Now an independent journalist, I've worked as a reporter in the culture and business sections of The New York Times, and been the editor of the Sunday business section and deputy business editor there as well as a senior editor of Business Week and the managing editor of CNBC, the cable TV

About Real Clear Arts

This blog is about culture in America as seen through my lens, which is informed and colored by years of reporting not only on the arts and humanities, but also on business, philanthropy, science, government and other subjects. I may break news, but more likely I will comment, provide

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