Deposition transcripts play critical role in art-sale lawsuit
One of the few products that never depreciates is artwork. This may be why one of the industries to never get slowed by the economy is modern art. But, every now and then, through the convoluted buyer and seller system, something can go awry.
Larry Gagosian, who owns 11 high-end, art galleries across the world, is being sued by collector Jan Cowles for allegedly selling a classic 1964 painting by Roy Lichtenstein called "Girl in Mirror" without his consent – and for half price. According to Bloomberg, Gagosian is accused of fraud, breach of fiduciary duty and unjust enrichment. Gagosian allegedly withheld critical information from the buyer to "enrich himself."
In January 2009, Deborah McLeod, the senior director of the Gagosian gallery in Los Angeles, offered the Lichtenstein painting to Thompson Dean, a CEO of Avista Capital Partners, for $3.5 million, according to the lawsuit's deposition transcripts. Dean didn't bite, though.
Then in June 2009, Charles Cowles, who owned the gallery the work was being hung in, announced he was closing. McLeod reached out to Dean once again, stating that the "seller [is] now in terrible straits and needs cash. Are you interested in making a cruel and offensive offer?" Dean offered half price.
McLeod said, "that's approximately half price, so I like it!" According to McLeod's deposition, what she meant to say was that the price is fair, because in 2009 most works were only going for half-price.
"I like it, market is off about half, this is about half price, I like it," she said, according to the deposition transcript. The way in which McLeod represented both the buyer and the seller is fueling the lawsuit, and complicating the deposition transcripts.
As Gagosian's lawsuit involves many characters, email exchanges and recanting, it's crucial that litigators use the best court reporters. Lawyers in the Midwest who, regardless of the case, want to provide their clients with the most accurate deposition transcripts, should partner with Milwaukee court reporters.
