Sotheby's v Mark Weiss Ltd & Ors

Sotheby's v Mark Weiss Ltd & Ors

Fairlight was bound as principal under the consignment agreement with Sotheby's, either directly or as a partner with MWL. The sub-agency authorities did not apply on the facts. The 'generally accepted views' proviso did not require a majority or headcount of expert opinion, and as at the relevant date, there was no generally accepted view among scholars and experts regarding the painting's attribution. Nevada remained the original buyer and was entitled to rescind under the authenticity guarantee. The appeal was dismissed on all grounds.

Parties
Claimant/first Respondent: Sotheby's; First Defendant/second Respondent: Mark Weiss Limited; Second Defendant/appellant: Fairlight Art Ventures LLP; Third Defendant: Mark Adrian F. Weiss
Jurisdiction
England and Wales
Judgment Date
23 November 2020
Procedural Posture
Civil Appeal / Court of Appeal Judgment on Appeal From Commercial Court
Outcome
Appeal dismissed
Legal Topics
Privity of Contract, Sub Agency, Partnership Existence, Interpretation of Contract Clauses, Authenticity Guarantees in Art Sales, Remedies for Rescission, Contribution and Indemnity
Contract Law Agency Law Partnership Law Commercial Law Privity of Contract Sub Agency Partnership Existence Interpretation of Contract Clauses +3 more

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Parties

Sotheby's

Claimant/first Respondent

Mark Weiss Limited

First Defendant/second Respondent

Fairlight Art Ventures LLP

Second Defendant/appellant

Mark Adrian F. Weiss

Third Defendant

Procedural Posture

Civil Appeal / Court of Appeal Judgment on Appeal From Commercial Court

Legal Issues

  1. 1 Whether Fairlight was in privity of contract with Sotheby's under the consignment agreement (Contract A)
  2. 2 Whether MWL and Fairlight were in partnership regarding the painting
  3. 3 Proper construction of the 'generally accepted views' proviso in the authenticity guarantee

Ratio Decidendi

Fairlight was bound as principal under the consignment agreement with Sotheby's, either directly or as a partner with MWL. The sub-agency authorities did not apply on the facts. The 'generally accepted views' proviso did not require a majority or headcount of expert opinion, and as at the relevant date, there was no generally accepted view among scholars and experts regarding the painting's attribution. Nevada remained the original buyer and was entitled to rescind under the authenticity guarantee. The appeal was dismissed on all grounds.

Court Disposition

Appeal dismissed

Orders

  • Fairlight to pay Sotheby's US$6,550,000 principal (less set-off)
  • Fairlight to pay MWL US$2,100,000