Greenwood v. Koven

Jane Koven (defendant) owned a painting purportedly painted by Georges Braque, which she purchased from the Rosenberg Gallery. Koven sought to sell the painting via the auction house Christie, Manson & Woods, International, Inc. (Christie) (defendant). Prior to consignment, two of Christie’s specialists examined the painting and concluded that it was authentic. The painting also passed Christie’s departmental-review process. Barbaralee Diamonstein (defendant) won the auction for the painting. Soon after, Diamonstein began questioning the painting’s authenticity. The Rosenberg Gallery confirmed the painting’s origin. Christie reassured Diamonstein of the painting’s authenticity, but Diamonstein was not satisfied. Consequently, Christie contacted Quentin Laurens, who, under French law, was the holder of the moral right to certify the authenticity of works by Braque. Laurens, believing the painting was inauthentic, refused to issue a certificate of authenticity. Accordingly, Christie rescinded the sale of the painting based on a right to rescission provided for in the consignment agreement between Christie and Koven. This provision granted Christie the right to rescind the sale of the painting if it determined “in its sole judgment” that such sale subjected Christie to liability, including liability for guarantee of authenticity. Christie returned Diamonstein’s payment and sought repayment from Koven. Koven refused, so Christie filed an insurance claim. Christie’s insurer, Lloyd’s of London (Lloyd’s) (plaintiff) brought a subrogation action against Koven to recover the money. Koven filed a third-party claim against Christie for breach of fiduciary duty and against Diamonstein. Lloyd’s and Christie moved for summary judgment.