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New York Court of Appeals to Address Jenack Decision Requiring Disclosure of Consignment Seller’s Identity to Enforce Sale Contract

Posted by Nicholas O'Donnell on January 18, 2013 at 4:15 AM

There is a new development in the decision last fall in which the Appellate Division of the New York Supreme Court ruled that an auctioneer must disclose the name of any owner who has consigned the work for sale, or a sale against a successful bidder cannot be enforced consistent with New York General Obligations law § 5-701, the New York Statute of Frauds. After the adverse decision, the William J. Jenack auction house petitioned the Court of Appeals for leave to appeal (in New York, as in many states, one can only appeal to the highest court with that court’s permission).

The odds of any such petition are always long, but on January 10, 2013 the Court of Appeals allowed Jenack’s motion for leave to appeal the lower court win by Albert Rabizadeh. The case will now be briefed in the coming months. Most notably for now, the existence of an appeal will give any interested constituencies a platform to seek to file an amicus brief.

The outcome will be an important one for anyone involved in auctions and sales on consignment.

Topics: consignment, New York General Obligations Law § 5-701, New York Court of Appeals, Statute of Frauds, Albert Rabizadeh, William J. Jenack

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The Art Law Report provides timely updates and commentary on legal issues in the museum and visual arts communities. It is authored by Nicholas M. O'Donnell, partner in our Art & Museum Law Practice.

The material on this site is for general information only and is not legal advice. No liability is accepted for any loss or damage which may result from reliance on it. Always consult a qualified lawyer about a specific legal problem.

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