Halsey Minor - Legal Complications

Legal Complications

Minor was engaged in lawsuits beginning in 2007 with both Christie's and Sotheby's.

On May 22, 2008, Minor was the winning bidder in a Sotheby's auction of Edward Hicks' The Peaceable Kingdom, with a hammer price of $9.6 million, a record for the artist. Minor also won two other paintings, Diamond Dust Shoes by Andy Warhol and Paris, Winter Days by Childe Hassam. The Peaceable Kingdom had been on loan to the American Folk Art Museum from 2000 until 2008. The painting was owned by Ralph O. Esmerian, who took it back to pay his debts to Sotheby's, Christie's, and Merrill Lynch.

In September 2008 Minor was sued for failure to pay for these paintings while allegedly waiting for Sotheby's to provide the promised documents that showed their actions had not violated New York law. In October, Minor countersued, contending the Sotheby's had had an interest in The Peaceable Kingdom that they did not disclose. Minor sought to have his countersuit designated as a class action October 1, 2008, in Northern District California but this claim was dismissed.

The outcome of this complex litigation has been both favorable and unfavorable to Minor.

On March 30, 2010, Sotheby's won on all counts, and Minor was ordered to pay them nearly $4.4 million, plus interest, late charges and legal fees. That amount represents the perceived drop in the resale value of Mr. Minor's artworks during the five months that Christie's kept the pieces—a lag that took place between late May and early November 2008 as the art market spiraled into recession. This case is currently under appeal.

On the other hand, a May 21, 2010 jury verdict found for Minor in U.S. District Court. Judge William Alsup ordered Christie's to pay $8.57 million in damages to Mr. Minor. Christie's was found guilty of fraud, theft and failure to honor a contract by a 10 person jury in federal court. Christie's then faced another $1.14 billion in outstanding litigation, the most threatening from billionaire Bill Koch. On March 18, 2011, this suit was settled in Christie's favor.

Three days later, however, on May 24, 2010, Manhattan federal Judge Barbara Jones ordered Minor to pay the $6.6 million-plus he owed Sotheby's (see March 30, 2010 award cited above) for reneging on his winning bids for three paintings. Minor satisfied the judgment and appealed in June 2010.

In addition to the suits cited above with the Landmark Hotel in Charlottesville, Minor now has actions against John Burnetti in Florida, Merrill Lynch in California and an appeal of Sotheby's non-trial verdict in New York Federal court. Merrill Lynch is being sued under the Rosenthal Act which defines the rights of debtors to be protected from abusive treatment by financial institutions.

Minor v. Merrill, filed March 10, 2009, State Superior Court, Los Angeles. Merrill filed a demurrer October 7, 2009; a hearing was set for November 25, 2009.

Minor currently owes over 10.4 million dollars in taxes to the State of California which have gone unpaid since 2009. https://www.ftb.ca.gov/aboutFTB/Delinquent_Taxpayers.shtml