Fap Art Management GmbH & Co KG v Philbrick & Anor [2022] EWHC 603 (QB) (23 March 2022)

Fap Art Management GmbH & Co KG v Philbrick & Anor [2022] EWHC 603 (QB) (23 March 2022)

The Collateral Agreement was a binding contract supported by consideration, but Claimants failed to perfect their security interest under UCC 9-313 as possession was not unequivocal, absolute, and notorious, nor was there an authenticated record. Ownership of items 3 and 10 was proven by payment and credit; claims to other items failed.

Citation
[2022] EWHC 603
Parties
Creditor: FAP Art Management GMBH & Co KG; Debtor: Inigo Philbrick; Debtor: Inigo Philbrick Ltd; HCEO: Equivo Ltd; HCEO: Nicholas Davy Todd; Third Party Claimant: Aiden Fine Arts Inc; Third Party Claimant: V&A Collection LLC
Jurisdiction
England and Wales
Judgment Date
23 March 2022
Procedural Posture
Third Party Claim Under CPR 85.5 / Judgment on Proprietary Claims to Artworks Subject to Writ of Control
Outcome
Claimants succeed in establishing ownership of items 3 and 10 and a 50% share in items 1 and 2; claims based on Collateral Agreement for other items fail.
Legal Topics
Enforcement of Judgments, Proprietary Interests, Security Interests, Perfection Under UCC, Consideration Under New York Law, Art Fraud
Civil Procedure Property Law Contract Law International Law Enforcement of Judgments Proprietary Interests Security Interests Perfection Under UCC +2 more

Case Brief

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Parties

FAP Art Management GMBH & Co KG

Creditor

Inigo Philbrick

Debtor

Inigo Philbrick Ltd

Debtor

Equivo Ltd

HCEO

Nicholas Davy Todd

HCEO

Aiden Fine Arts Inc

Third Party Claimant

V&A Collection LLC

Third Party Claimant

Procedural Posture

Third Party Claim Under CPR 85.5 / Judgment on Proprietary Claims to Artworks Subject to Writ of Control

Legal Issues

  1. 1 Whether Collateral Agreement gave proprietary interest to Claimants in artworks
  2. 2 Whether Claimants perfected security interest under New York UCC
  3. 3 Ownership of specific artworks based on payment and credit

Ratio Decidendi

The Collateral Agreement was a binding contract supported by consideration, but Claimants failed to perfect their security interest under UCC 9-313 as possession was not unequivocal, absolute, and notorious, nor was there an authenticated record. Ownership of items 3 and 10 was proven by payment and credit; claims to other items failed.

Court Disposition

Claimants succeed in establishing ownership of items 3 and 10 and a 50% share in items 1 and 2; claims based on Collateral Agreement for other items fail.

Orders

  • Claimants declared owners of items 3 and 10 and 50% share of items 1 and 2.
  • Claims to other artworks under Collateral Agreement dismissed.