Sotheby’s Sued by Art Collector Over Alleged Fake Painting
An art collector has filed a lawsuit against Sotheby’s, claiming the auction house is backing out of a deal to buy back a $1.5 million painting that might not be real.
Charles Kahn, the investor, alleges that in 2003, Sotheby’s sold him “Portrait of Leopold Zborowski,” which is attributed to the renowned Italian artist Amedeo Modigliani. However, he later discovered that the painting could be a forgery.
In an effort to placate Kahn, Sotheby’s agreed to a contract allowing him to sell the painting again by 2031, but according to the lawsuit filed last week in Manhattan Supreme Court, the auction house has failed to uphold its end of the bargain.
The lawsuit states that “Sotheby’s did not accept the consignment, did not sell the painting at auction, and did not pay Mr. Kahn the amount owed,” and is seeking damages totaling $2.6 million.
Kahn claims he has reached out to the auction house twice since June to activate the agreement, but has not heard back.
He initially bought the Modigliani works at auction for a cumulative total of $1.55 million. However, in 2016, Sotheby’s itself raised concerns about the authenticity of the painting, stating it “does not meet certain standards” and lacks “salable value” in the art market, as noted in the complaint.
Under the contract signed in 2016, Sotheby’s was supposed to resell the painting and ensure Kahn received at least the original purchase price plus interest. If Kahn chooses to sell the painting by 2031, Sotheby’s would auction it off and pay him either the original price plus annual compounded interest or the auction price, depending on which is higher.
In return, Kahn was to release Sotheby’s from any claims related to the painting. He sent a letter to them in June, asking about how to proceed with the agreement, but allegedly did not get a response.
A communication between lawyers in September suggested that Sotheby’s’ lack of reply indicates they have no intention of fulfilling their obligations. The letter concluded with a warning that Kahn would consider legal action if Sotheby’s did not respond.
The painting, dating back to around 1917, was previously owned by Modigliani’s principal dealer, Leopold Zborowski, who bought it directly from the artist. Sotheby’s initially sold the artwork in 1960, and it had been displayed in Brussels and Basel during the 1930s. The auction house repurchased it from Perls Gallery in 1992.
Recently, Sotheby’s relocated from its prior location on 1st Avenue to the iconic Breuer Building on Madison Avenue, which it purchased for $100 million in 2023.
A spokesperson for Sotheby’s stated that the auction house “does not comment on pending litigation,” while Kahn’s representative did not provide any comments upon request.
