Successful negotiation

Successful negotiation prevents litigation

The case
In 2006 Andrew Hartley's auctioneers, a well-established auction house in Yorkshire, had one of its consigned items - J.O. Imbertson Stained Glass panels within oak frames in an Islamic style - for an upcoming sale identified as being on the Art Loss Register database. Logged as missing in 1997 by the victim, who is an eminent London dealer, the stained glass panels had disappeared in transit between the US and UK. Having bought the glass in good faith at auction and enjoyed it in their house for close to a decade, the consignors were selling due to downsizing. As a subscriber of the ALR database checking service, the auction house immediately withdrew the lot and a private deal was brokered between the victim and the consignor. In this case the solution entailed a payment similar to that of the glass at auction 9 years prior.

Procedures followed by auctioneers
1. Item identified and auction house notified;
2. Confirmatory ALR evidence accepted;
3. Lot withdrawn from sale;
4. Informed consignor, suggesting direct contact with ALR
5. Acted as relay between ALR and consignor until the latter realised that negotiation was the only solution to avoid court action;
6. Released lot on confirmation from ALR and consignor that deal had been brokered.

Quote
‘No longer is it only the trade that needs to be wary of illegitimate items on the market. More and more the unsuspecting enthusiast or private collector is finding him/herself in possession of an acquisition with bad title. Heartache can be avoided, regardless of an encouraging price or the beauty of the item, by conducting due diligence checks ranging from Internet research to checking against the ALR database.' (Nicholas Wilby, Art Loss Register)

Lessons learnt

Check all consigned items with the one of the Databases of stolen art.
Always request item provenance and research it.
There is a thriving trade based on the acquisition of goods that are rendered unidentifiable due to poor labelling and paperwork whilst being transported. The shipping or freight company will have a lien over the goods for any freight charges payable. If these are not satisfied the company may seek to sell the goods. This allows open market sale of lost items.
If both sides are law abiding there is opportunity to find middle ground in a contest between vendor and consignor that is acceptable.
Success of any brokering is enhanced by positive involvement of the auction house, gallery or dealer that received the consignment.

Further Information
Art Loss Register
Nicholas Wilby
Email: nick.wilby@artloss.com
Tel: +44 (0)20 7841 5780
Fax: +44 (0)20 7841 5781