Art Appraiser Safe|From Fraud Claim

(CN) - An art expert is safe from a fraud claim based on his appraisal of a Gauguin painting because the appraisal was based on his opinion, a New York appeals court ruled. Mandarin Trading Co. complained that it lost money on Paul Gauguin's "Paysage aux Trois Arbres."

Guy Wildenstein, a world-renowned Gauguin expert, estimated that the painting was worth between $15 million and $17 million.

Mandarin then bought the painting for $11.8 million but was able to resell it for only $9 million.

The trial court dismissed Mandarin's complaint against Wildenstein, and the Manhattan-based appeals court agreed.

"The complaint fails to state a cause of action for fraudulent misrepresentation, because the appraisal consists of opinion, which is not actionable," the judges wrote.

"Mandarin's unjust enrichment claim cannot be a back door to recovery based on reliance on the appraisal, when it was not entitled to rely on the appraisal in the first place," the judges ruled.

Subscribe to Closing Arguments

Sign up for new weekly newsletter Closing Arguments to get the latest about ongoing trials, major litigation and hot cases and rulings in courthouses around the U.S. and the world.

Email *

Submit