Can an Art Dealer Represent Both Buyer & Seller? Gagosian Testifies

Ouch. Artinfo just published a sizzler, which basically asks a key question of agency.

What exactly is a dealer’s duty to his client? In his deposition, Gagosian said, “As a matter of practice, art dealers frequently represent the buyer and the seller.” His gallery has often done so, he admitted, without disclosing his relationship to both parties. “That’s the way dealers work,” he said. But [the adverse party's] lawyers argue that this practice is illegal.

The article notes that Gagosian is currently involved in another lawsuit, against the seller.