Art Law Report

California Resale Royalty Act Ruled Unconstitutional as to Out of State Sales, What Effect on the Market?

Posted by Nicholas O'Donnell on May 6, 2015 at 6:53 AM

In a decision long awaited by artists and auction houses in particular, the Ninth Circuit Court of Appeals has ruled that the California Resale Royalty Act of 1976 (CRA)—America’s only droit de suite—is unconstitutional top regulate any sales of art outside of California. The court concluded, however, that that portion of the law is severable from the rest, and let the regulation of in-California sales stand for further interpretation by a subsidiary panel of the appeals court. There are two likely aftereffects of this decision. Galleries and auction houses can put any concerns to rest about sales in New York in particular, but one has to wonder about the effect it will have on putting items for sale in California, which will effectively have a premium not present in other states. It also raises the possibility that the resulting piecemeal framework will motivate movement on the pending federal bill (the American Royalties Too (ART) Act of 2015) concerning resale royalties. Could this be the development that prompts movement in Congress?

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Topics: Legislation, Resale Royalties, Chuck Close, Supreme Court, Christie's, Cal. Civ. Code § 986(a), Dormant Commerce Clause, droit de suite, sales tax, Cal. Redev. Ass’n v. Matosantos, use tax, American Royalties Too (ART) Act of 2015, California Resale Royalty Act, Copyright, Ninth Circuit Court of Appeals, Sotheby's, eBay

The Woman in Gold: Why the Altmann Case Matters

Posted by Nicholas O'Donnell on April 10, 2015 at 6:35 AM

The release last week of The Woman in Gold, the feature film adaptation of The Lady in Gold by Anne Marie O’Connor, starring Helen Mirren and Ryan Reynolds as Maria Altmann and her attorney E. Randol Schoenberg, respectively, as well as Tatiana Maslany as the younger Altmann and Daniel Brühl as Austrian journalist Hubertus Czernin, is an important opportunity to reflect on the legal importance of the case. Even today, the case provides lessons about the way some victims are still treated, and how one individual can make sure the past is never forgotten. The looting of Jewish art collections was a concerted effort whose prominence should never be forgotten. And perhaps even more, it robs those who did survive of the dignity of remembering their family experiences. Consider: the next time you gather with your extended family, look around the room. Pick something that you’re accustomed to seeing when the family meets. Now, imagine it had been stolen or surrendered under duress, and was hanging on the wall of a national collection that denied it had been taken. How would you feel? This is the dilemma faced by many claimants, and it is precisely why Altmann matters so much.

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Topics: Maria Altmann, The Lady in Gold, Adele Bloch-Bauer, Guelph Treasure, The Woman in Gold, Daniel Brühl, Germany, Nazi-looted art, Academy of Fine Arts, Foreign Sovereign Immunities Act, Hitler, Tatiana Maslany, Anne Marie O’Connor, Supreme Court, A Few Good Men, Belvedere, E. Randol Schoenberg, World Jewish Congress, Stiftung Preussischer Kulturbesitz, Ryan Reynolds, FSIA, expropriation exception”, Restitution, Neue Galerie, World War II, Foreign Sovereign Immunities, Switzerland, Ferdinand Bloch-Bauer, Helen Mirren, Museums, Fritz Altmann, Gustav Klimt, Vienna, Welfenschatz, Hubertus Czernin, Ronald Lauder, Austrian National Gallery

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The Art Law Report provides timely updates and commentary on legal issues in the museum and visual arts communities.

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