Case Review: Art Works, Inc. v. Diana Al-Hadid

By Nina Rice*

The history of New York’s statutory law pertaining to the art market is relatively brief despite the state’s long held status as the art capital of the United States, if not the world. As visual arts continue to evolve in complexity, lawsuits between artists and their gallerists, too, have become increasingly more complex. It begs the question of whether New York should expand upon its legislative history with further amendments to the New York Arts & Cultural Affairs (NYACAL) or any other art laws. For example, currently, NYACAL, which governs artist-gallery relationships, does not explicitly address any scenario where the gallerist or merchant funds the creation of an artwork and employs a third party to assist in producing the works nor does it address any of the complications that such interactions can create in an artist-gallerist relationship. NY’s Commercial Code similarly is silent on this point.

Background

On February 23, 2021, Marianne Boesky Gallery, incorporated as Art Works, Inc., ("Art Works") filed a complaint against sculptor and mixed media artist Diana Al-Hadid declaring that Art Works had an ownership interest in Al-Hadid’s unsold works and was entitled to share in the proceeds from any sale.^[1] On May 9, 2022, Justice Louis Nock entered a judgment in favor of Al-Hadid. What sets this lawsuit apart from notable cases between artists and gallerists dealing with the question of ownership, which is clearly stated in NYACAL § 12, is the fact that the gallerist here funded a third party to assist in creation of the works. Terms of ownership set forth in NYACAL do not explicitly address circumstances which include a third party interest and the gallerist's funding of the creation of works. Thus, this case looks to the terms of the contract.