Liquidating Assets When the Asset is an Andy Warhol

centerforartlaw May 4, 2013

Andy Warhol, Portrait of Dolly Parton, from Christie's May 2012
Post-War and Contemporary Art Morning Session. The
provenance lists that the Andy Warhol Foundation sold it to a
private collector (now known as Chris Schoen).

Bank of America has filed a complaint against real estate developers Chris Schoen and Hal Barry in Atlanta after they defaulted on their $4.5 million loan. They are requiring Schoen and Barry to liquidate assets—these assets include four paintings owned by Schoen appraised by Christie’s at $3.1 million. In addition, the bank is calling foul: at the May 2012 Christie’s Contemporary Art Sale Schoen sold his Portrait of Dolly Parton by Andy Warhol for $626,500 (Sale 2558, Lot 158) and failed to report the income to the bank. Bank of America is seeking Schoen’s four remaining paintings, the $626,500 profit from the Warhol sale, attorney’s fees, interest of $424 per day, and complete repayment. The lawsuit filed in the Northern District of Georgia Atlanta Division on April 22, 2013, Bank of America v. Barry Real Estate Companies, Inc., Bstwenty, LLC, Christian B. Shoen and Harold V. Barry, states:

"Plaintiff desires to repossess and sell the Artwork and is entitled to take possession of the Artwork and any proceeds from the sale of Artwork, possession of which has been wrongfully withheld from Plaintiff by Schoen. Schoen has advised Plaintiff that he will not sell or turnover the remaining Artwork in his possession, custody or control and has failed to turn over the $555,000.00 (net) generated from the May 2012 sale of the Portrait of Dolly Parton.... Schoen's failure and/or refusal to relinquish control and possession of the Artwork and proceeds therefore is in bad faith, constitutes stubborn litigiousness, and has caused Plaintiff unnecessary trouble and expense thereby entitling Plaintiff to recover its expenses of litigation, including reasonable attorney's fees and costs pursuant to O.C.G.A § 13-6-11."

Hal Barry celebrating the opening of his helipad in Atlanta.

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Disclaimer: This article is for educational purposes only and is not meant to provide legal advice. Readers should not construe or rely on any comment or statement in this article as legal advice. For legal advice, readers should seek a consultation with an attorney.