Case Review: Abbott Labs v. Feinberg (2020)

By SaBreigha Dixon.

Abbott Laboratories v. Feinberg, No. 1:18-cv-08468 (S.D.N.Y. Dec. 9, 2020).

At the heart of this case involving both art theft and forgery is Abbott Laboratories (“Abbott”), a corporation organized under Illinois state law that specializes in multinational medical devices and healthcare. A longtime patron of the arts, Abbott Laboratories acquired a corporate collection of fine art which decorates the halls of Abbott’s headquarters.^[1] In early 2016, Abbott hired an expert art appraiser to assess and update the valuation of several pieces of art in its current collection for insurance purposes. Several months later, in March 2016, the appraiser returned a report to Abbott laboratories informing the corporation that one piece of art in particular was a deliberate forgery of their original painting. The original oil painting, entitled “Maine Flowers” by Marsden Hartley and roughly worth $1 million, was purchased by Abbott Laboratories in 1960 from an art dealer in New York City (the “Painting”).

After learning about the forgery, Abbott Laboratories contacted law enforcement and began an investigation to locate the Painting. In 2018, the Painting was discovered to be in the possession of Carol Feinberg in New York City. Ms. Feinberg asserted that she purchased the Painting in good faith from an art gallery in 1993 from a New York art collector named Eric Kaufman. It is believed that the Painting was stolen in 1987, by a Mr. R. Duncan who sold it to Mr. Kaufman, after the painting was sent for offsite cleaning. Ms. Feinberg declined to give the Painting back to Abbott Laboratories and the parties were unable to negotiate a settlement. Instead, on August 31, 2018, Ms. Feinberg filed a declaratory judgment action in the Northern District of Illinois, seeking a declaration that she had title and was the rightful owner of the Painting.^[2] She also asserted that Abbott Laboratories was barred from asserting title to the Painting by the statute of limitations.^[3]