“A handshake…doesn’t cut it any more”

Law.com has a very interesting article regarding the increase in lawsuits and litigation in the “artworld,” as well as a realization of the importance of having written agreements between art collectors, sellers, and artists. The article indicates a move by certain U.S. law firms to initiate artlaw departments.

“The art of making an art deal used to involve a handshake, but these days it increasingly involves litigation…. ‘A handshake, unfortunately, doesn’t cut it any more,’ said Alan Effron, a litigation partner at New York’s Pelosi Wolf Effron & Spates.

‘‘The stakes are so much higher in the art world, and there are so many well-funded people.’…With art pieces becoming increasingly expensive, deals crossing more borders and a growing number of people acquiring art, lawyers said they are seeing more lawsuits.”

Speaking to the Emperor about his missing Louis Vuitton attire, Effron continues:

“I’ve seen litigation increase on each of those sides of the triangle,” he said. “A lot of art world participants are reluctant to acknowledge the role that financial aspects play. … But I think a lot of them are rethinking that.”

Citing another reason for the increase of law in art, “Virginia Rutledge, who chairs the Art Law Committee at the Association of the Bar of the City of New York, said more people without a history in collecting are getting involved, which has led to increased activity in the art market.” The lack of detailed contracts and sufficient paperwork are other factors.