Seltzer v. Morton

Western-art expert Steve Seltzer (plaintiff) sued Steve Morton, attorney Dennis Gladwell, and Gladwell’s firm, Gibson, Dunn & Crutcher LLP (GDC) (defendants) for malicious prosecution and abuse of process. Morton and his brother bought a painting purportedly signed by Charles M. Russell from the Kennedy Galleries in 1972. When Morton decided to sell the painting in 1998, an appraiser said a real Russell would fetch $650,000. However, Seltzer attributed the painting to his grandfather, painter O.C. Seltzer, making it much less valuable. Morton took the painting to a second expert, Ginger Renner, who confirmed O.C. Seltzer painted it. Morton sent a letter thanking Renner and expressing shock and had an attorney write the Kennedy Galleries accusing them of fraudulently misrepresenting the painting’s origin. Morton tried to sell the painting as a Russell twice, but the dealers refused. When Morton retained Gladwell, he sent letters demanding that Seltzer and Renner recant their opinions or the Mortons would sue for punitive damages. Seltzer did not respond, and a GDC associate sued Seltzer on the Mortons’ behalf. Despite minimal funds, Seltzer retained counsel, who served discovery requesting documents concerning the painting’s authenticity. However, Morton did not produce the letters to Renner or the Kennedy Galleries admitting the painting was not a real Russell. Seltzer requested summary judgment, submitting affidavits from 10 Western-art experts opining the painting was not a Russell. After seven months, Gladwell and Morton acknowledged they could not prevail, and the court dismissed the lawsuit. Seltzer incurred over $45,000 in legal fees and suffered damage to his reputation and severe emotional distress resulting in debilitating physical trauma. The jury awarded Seltzer damages totaling $20.35 million, which the court reduced by $10.5 million. The parties cross-appealed.