Victory for 5Pointz Artists in the Second Circuit

5pointz artworks being whitewashed in 2013

In a ruling which will likely feature in future art law coursebooks, the Second Circuit has affirmed a $6.75 million judgment against a real estate developer for whitewashing a number of murals at 5Pointz. This is a rare victory for artist’s moral rights in an American court.

The site became known as a prominent aerosol art haven in 2002 when the developer Gerald Wolkoff asked Jonathan Cohen to install some art on a warehouse in Long Island City in Queens. Cohen curated the space and had a rotation of various artists use the building. It attracted worldwide attention. It also displayed itself to passengers every time a 7 train would pass by:

As is often the case with moral rights cases that have been litigated under the Visual Artists Rights Act, changed circumstances for the building led to the deveoloper seeking to capitalize on the new-found gentrification of the neighborhood. In 2013 artists learned that Wolkoff was planning to destroy the warehouses to build a condominium complex. The artists sought landmark status and asked for an injunction under the Visual Artists Rights Act. That injunction was not granted, and rather than wait for the legal process to play out, or wait to let the artists preserve their works, Wolkoff whitewashed the art. That act probably did more harm to Wolkoff’s argument than any thing, with the district court finding the art had achieved recognized stature and imposing the maximum statutory damages of $150,000 per work (45 works in total) of art in order to sanction Wolkoff’s conduct and to vindicate the policy supporting the moral rights act.

Donn Zaretsky in commenting on the ruling wrote that the damages may have been the most interesting part of the ruling:

Now, it may be the facts of this case were so unique and so egregious that it won’t have a wider impact — basically what happened is that early in the litigation the artists got a TRO preventing the demolition of the site, it expired, and, while the district court was considering their application for a preliminary injunction to replace it, the developer had the work painted over, “without any genuine business need” to do so, “simply, as the district court found, an ‘act of pure pique and revenge.'” But the idea that significant statutory damages can be awarded in a VARA case even where actual damages can’t be proven could be a big deal.

The Art Law Blog

Moral rights are rights that have been around for a very long time. They originated in the French Revolutionary idea of ‘droit moral de l’auteur’, stemming from the idea that if art is harmed, the artist also is harmed.

I am always surprised when I encounter art lawyers and academics who are critical of the idea of moral rights. They will often make the argument that artists do not want or need moral rights, and developers like Wolkoff will not allow art anywhere near their buildings ever again. But this elides the reality, these condominium developments have as I understand it been built to take advantage of the newly gentrified neighborhood, and the new ‘luxury’ development will still be called 5 Pointz, and feature aerosol art. The art will happen no matter what, this ruling just gives the artists vindication for the personality of these artists that was bound up and integral in these images. Developers like Wolkoff claim that these moral rights damage their property rights; but a moral right is not an economic right. Instead it accounts for the psychological suffering which takes place when an artist’s art has been harmed in some way.

The IFAR Art Law & Cultural Property Database

This is an unsolicited plug—I have no doubt that many folks are very familiar with the good work that the International Foundation for Art Research (IFAR) has done for many years. But one of its most remarkable accomplishments is its Art Law and Cultural Property Database. If you are a student, attorney, art professional, or cultural heritage advocate and not availing yourself of this resource, you are likely duplicating work and failing to account for much of the advocacy and scholarship which has come before. I encouraged my own librarians to secure a subscription for my work, and the work of students in my Art Law Seminars. I’ve used this terrific resource many many times in preparing lectures and informing my own scholarship, and I encourage you to consider adding a subscription for your own firm or institution.

Information on the database is available here.

Elmyr de Hory Documentary Screening in New York Wednesday Evening

On Wednesday evening at the National Arts Club in New York a screening this new documentary examining Elmyr de Hory will take place.

Here are the details:

Real Fake: The Art, Life and Crimes of Elmyr de Hory   A Film By Jeff Oppenheim

Wednesday, February 5, 8:00 PM 
THE NATIONAL ARTS CLUB 
15 Gramercy Park S, New York, NY 10003
Elmyr de Hory was one of the most notorious forgers. He is alleged to have painted thousands of “fakes,” many of which still hang in major museums and private collections worldwide. Having eluded prosecution from Interpol, Scotland Yard and other authorities, veteran filmmaker Jeff Oppenheim re-opens the case in this investigative caper that sheds new light on the depth of Elmyr’s crimes. 

This event is free and open to the public, however an RSVP is required at nationalartsclub.eventbrite.com.


PLEASE NOTE: Seating is first-come, first-served and entry to the event can not be guaranteed. Please arrive 20 minutes before the event start time. 

Essay on Financial Innovation and the Market for Pop Art

Jasper Johns ‘Flag’ (1954-55) Museum of Modern Art, New York. The work was included in an exhibition at the Leo Castelli Gallery in 1958.

The art market owes much of its success to tax policy. A new essay in the Columbia Journal of Law & the Arts examines many of the financial structures used by Pop Art gallerist Leo Castelli in the middle of the 20th Century. The Essay is authored by Michael W. Maizels (visiting researcher at the Harvard metaLAB) and William E. Foster (Associate Dean for Academic Affairs at Arkansas School of Law)

This essay focuses on the efforts of an enterprising art gallerist, Leo Castelli, to aggressively promote his stable of Pop artists through the development of several financial structures, including some designed to leverage the relatively generous income tax deductions and anemic enforcement regime of the time. In doing so, Castelli not only seeded the ground for the international ascendance of American visual art, but also engineered financial arrangements that fostered the development of a lucrative and resilient art market that endures to this day. With the aim to provide insights into both the legal-political and the art historical registers, this essay describes a tax law framework that provides a key piece missing from the art historical puzzle.

Maizels, Michael and Foster, William E., The Gallerist’s Gambit: Financial Innovation, Tax Law, and the Making of the Contemporary Art Market (November 21, 2019). Columbia Journal of Law & the Arts, Vol. 42, No. 2, 2019. Available at SSRN: https://ssrn.com/abstract=3491207 or http://dx.doi.org/10.2139/ssrn.3491207