Park West Galleries v. Fine Art Registry [1]

Park West Galleries (PWG), an art gallery that also performs auctions on cruise ships, sued Fine Art Registry (FAR), an organization that, according to The Art Newspaper [2], offers “advocacy to victims of art fraud and abuse” including a system of tagging and registering art, along with Theresa Franks, CEO and founder of FAR, and Bruce Hochman, Gallery Director for the Salvador Dali Gallery in San Juan and art expert for FAR.  (Compl. [3] ¶¶ 2-3, 5-6.) 

According to the complaint [3], FAR, Franks, and Hochman allegedly orchestrated an eleven-month "smear campaign" through the FAR website, making "false and defamatory statements" about PWG in an "attempt[] to destroy Park West's goodwill and reputation."  (Compl. ¶¶ 4, 7, 24.)  Specifically, PWG complains that FAR, Franks, and Hochman have falsely accused it of selling fake artwork during its "at-sea" auctions.  (Compl. ¶25-33.)  PWG is seeking monetary damages and a permanent injunction barring FAR, Franks, and Hochman from making any further defamatory statements.

Shortly after this suit began, PWG brought a similar suit against David Phillips, who participated in an allegedly defamatory interview with Hochman that was posted to FAR's website.  In March, 2009, the court consolidated [4] the two cases.

The court denied [5] Hochman's motion to dismiss [6] for lack of personal jurisdiction or forum non conveniens and improper venue.  FAR and Franks also filed a motion to dismiss [7] for lack of personal jurisdiction and/or improper venue.  The court found [8] that jurisdiction was proper over FAR, but not Franks, and dismissed Franks from the lawsuit.  It denied the request to change venue.

In May 2009, FAR and Phillips filed a counterclaim [9] against PWG, accusing it of a "concerted effort to defame, smear, and destroy the business and personal reputations of F[AR] and P[hillips]."  (Counterclaim [9] ¶ 12.)  The counterclaim includes counts of defamation, tortious interference, interference with prospective business advantage, trademark infringement under the Lanham Act, and conspiracy.  FAR and Phillips are seeking actual and punitive damages.

The court has yet to rule on PWG's motion to dismiss [10] FAR's and Phillips' counterclaim.

Update:

02/26/2010 - The court granted in part and denied in part [11] the motions for summary judgment filed by Global Fine Art Registry, David Charles Phillips, Theresa Franks, and Bruce Hochman and The Salvador Dali Gallery. Among other rulings, the court determined that posting allegedly defamatory statements under a pseudonym triggered a longer statute of limitations period applicable to "fraudulent concealment."