Foxley v. Sotheby’s Inc.

In 1987 William Foxley (plaintiff), an experienced art buyer and seller, purchased a painting from Sotheby’s, Inc. (defendant) for $632,500. The painting, which was purportedly by Mary Cassatt, was supposed to come with a letter discussing the artwork that was written by art historian Adelyn Dohme Breeskin. In 1993, after Foxley realized that he did not have the Breeskin letter, Sotheby’s gave him a letter written by Breeskin describing the painting based on a photograph, rather than the original. Later that year, Foxley attempted to sell the painting at auction at Sotheby’s but was told that the painting might be inauthentic. Foxley withdrew the painting from the auction, and Sotheby’s agreed to refund him the purchase price. In 1994, after Sotheby’s failed to refund him, Foxley filed a lawsuit in federal district court against Sotheby’s, alleging fraud. Foxley claimed that Sotheby’s did not have a copy of the Breeskin letter when it sold him the painting, that Sotheby’s knowingly hid the fact that the Breeskin letter was based on a photograph, and that Sotheby’s knowingly failed to disclose that Breeskin’s scholarship authenticating paintings had become unreliable. Foxley also claimed that Sotheby’s failed to disclose the name of the painting’s previous owner, Michael Altman, who was known to be an unreliable art dealer. However, Sotheby’s did not regularly disclose the names of its sellers. Sotheby’s moved to dismiss Foxley’s fraud claims, arguing that Foxley had failed to show that Sotheby’s knowingly made false representations, that Foxley had not reasonably relied on any false representations, and that Foxley’s fraud claims were barred by the six-year statute of limitations.