(April 15, 2010, Weil Gotshal News)
On March 30, 2010, Weil achieved a total victory in U.S. District Court on behalf of Sotheby's, Inc. in an action for breach of contract against CNet founder, Halsey Minor. Minor was the high bidder in Sotheby's auctions for three notable paintings for a total of approximately $13.8 million. The paintings included Edward Hicks'
The Peaceable Kingdom with the Leopard of Serenity, Andy Warhol's
Diamond Dust Shoes and Childe Hassam's
Carriage in Winter. Minor failed to pay for any of the paintings.
Regarding the Hicks and Hassam paintings, Minor argued that the contracts should be rescinded because Sotheby's had not disclosed that it had security interests in the paintings (based on loans to their consignors). Minor argued that the security interests were equivalent to ownership interests, which allegedly had to be disclosed under several theories.
In granting summary judgment to Sotheby's, Judge Barbara S. Jones held that Sotheby's auctions were conducted in complete accordance with the law and that, even giving Minor the "benefit of every rational inference derived from" the evidence he presented, his claims were insufficient. The Court awarded Sotheby's approximately $6.6 million in damages, based on the difference between the amount Minor agreed to pay and the amount Sotheby's had already received when it resold the paintings during this past year, plus interest. The Court also held that Sotheby's is contractually entitled to recover its legal fees.
The Weil team representing Sotheby’s included partners Steven Reiss and Howard Comet, associate Vanessa Chandis, with assistance provided by paralegal Hillary Axon.