De Sole v. Knoedler Gallery, LLC

Glafira Rosales was an art dealer who claimed to have access to a collection of paintings by well-renowned artists. Rosales met Ann Freedman, president of the well-respected Knoedler Gallery, LLC (Knoedler) (defendant) and sought to sell paintings to Knoedler. Rosales claimed that the paintings had belonged to a deceased businessman (Mr. X). She said that Mr. X’s son wanted to sell the paintings. Rosales initially claimed that Alfonso Ossorio, an artist, had advised Mr. X on his collection and that Mr. X had purchased many artworks directly from the artists. Knoedler failed to confirm Rosales’s story. In 2001, Knoedler sold a purported Jackson Pollock that it purchased from Rosales. The International Foundation for Art Research (foundation) reviewed the Pollock painting for authenticity. The foundation determined that it could not attribute the painting to Pollock and that it was “inconceivable” that Pollock sold his artwork through Ossorio. Knoedler did not submit any other paintings from Rosales for review. Later, Rosales and Freedman changed their story about the origin of Rosales’s paintings and replaced Ossorio with David Herbert. In 2004, the De Soles (plaintiffs) purchased a purported painting by Mark Rothko that Knoedler acquired from Rosales. Prior to the purchase, Freedman met with Jim Kelly, consultant and agent for the De Soles. Freedman insisted the painting was authentic and that it would soon be officially recognized by the official committee (catalogue raisonné) for Rothko works. Freedman provided additional written assurances that the painting was acquired directly from Rothko by Mr. X through Herbert. Eventually, forensic analysis revealed that some of the paintings from Rosales were forgeries. Knoedler became unprofitable after it stopped selling paintings from Rosales and closed after 165 years, which was reported in the New York Times in November 2011. The De Soles brought a claim against Knoedler for fraud, among other claims, after seeing the report.