Source: http://vlaa.org/artist-gallery-consignment-statutes/
Timestamp: 2017-02-28 05:25:12
Document Index: 90511971

Matched Legal Cases: ['§ 44', '§ 986', '§ 1738', '§ 42', '§ 12', '§ 25', '§ 5815', '§ 359', '§ 2121', '§ 5', '§ 47']

Artist-Gallery Consignment Statutes – VLAA
Artist-Gallery Consignment StatutesHome Artist-Gallery Consignment Statutes
More than 30 states have statutes governing the business relationship between artists and art galleries. Most of the laws dictate that the art dealer owes a fiduciary duty to the artist, meaning that the gallery cannot take actions that are inconsistent with the artist’s financial well-being. This state-by-state summary highlights the unique provisions of the statutes.
Ariz. Rev. Stat. Ann. §§ 44-1771 to 44-1778 (2012).
An art dealer after receipt of a work of fine art for purposes of sale or exhibition to the public is the agent of the artist and must hold the artwork and proceeds from the sale of such artwork in trust, creating a fiduciary relationship. An art dealer who violates these statutes is liable to the artist for five hundred dollars ($500.00), actual damages, including incidental and consequential damages, and reasonable attorney’s fees. An art dealer who sells a work of fine art which is on consignment but who fails to transmit all monies due the artist on a monthly basis is liable to the artist for three (3) times the amount due the artist. Dealer is strictly liable for loss or damage while the work of fine art is in the dealer’s possession. If any portion of the artist or dealer agreement waives a provision of the statute, that portion of the agreement is void.
Cal. Civ. Code Ann. § 986 (2009); Cal Civ. Code Ann. §§ 1738, 1738.5-1738.7 (2012). The California resale royalty law is unique in the United States, although it is a well-established legal right in some other countries. An artist has a right to receive five percent (5%) of the sale price (if greater than one thousand dollars [$1,000] for a work of fine art sold by a gallery or at auction. Signed into law in 1979, the state’s resale royalty law was held invalid by the U.S. District Court in Central California in 2012 for being in violation of the Commerce Clause of the U.S. Constitution. The case is in the appeals process.
A consignee of a work of fine art is the agent for the artist. The consignee holds the art in trust for the consignor and proceeds from the sale of such art will similarly be held in trust. The consignee is responsible for loss of or damage to the art.
Conn. Gen. Stat. §§ 42-116k – 42-116m (2012).
Indiana’s general consignment statute applies to works of art sold on consignment. Consignment agreement between consignor and consignee creates a trust and a fiduciary relationship. Trust property cannot be used to pay consignee’s debts. Consignee must transmit proceeds of sale to consignor within 30 days. If purchase is being paid to consignee in installments, the consignee must use the proceeds from the installment payment to pay the consignor first, unless otherwise specified by the artist. If art is damaged while on consignment, consignee is strictly liable for the cost of the art unless damage occurs more than 30 days after the date by which the consignor has agreed to remove item. If consignee violates agreement, consignor can bring an action and recover an amount equal to $50, any damages sustained, and reasonable attorney’s fees.
McKinney’s Arts and Cultural Affairs Law § 12.01 et seq. (2012).
An art dealer after receipt of a work of fine art for purposes of exhibition or sale is the agent of the artist and must hold the artwork and proceeds from the sale of such artwork in trust, creating a fiduciary relationship. Any waiver of rights under chapter must be clear, conspicuous, and in writing, and does not apply to first twenty five hundred dollars ($2500.00) in proceeds from sales of artwork in the first 12 months of the agreement.
Effective Nov. 6, 2012, New York amended and strengthened its consignment law for artists. Galleries and art dealers (consignees) now must keep their own funds and funds in artist trusts completely separate. Funds in artist trusts cannot be used to pay the consignee’s debts. If a consignee is inter-mingling the funds, an artist or other beneficiary of the trust can bring a criminal action for violating the statute as well as a civil action to recover damages. The amended statute also expands the definition of an ‘heir’ to the trust and makes it easier for appointed beneficiaries to gain control of the trust and bring action on behalf of it.
N.C.G.S.A. § 25C-1 et seq. (2012).
No trust relationship, but artwork is “bailment property” until artist has been paid in full, and artwork is not subject to the claims of creditors. Bailment property is not subject to the claims of an art dealer’s creditors.
OH R.C. § 5815.42 et seq. (2012).
An art dealer after receipt of a work of fine art for purposes of exhibition or sale is the agent of the artist and must hold the artwork and proceeds from the sale of such artwork in trust, creating a fiduciary relationship. Requires gallery to attribute artist for work displayed. Any waiver of rights by artist is void. Gallery liable to artist for attorneys’ fees and actual damages for violation.
O.R.S. § 359.200. (2011).
On written demand, gallery must provide names of customers purchasing artist’s work to artist. If gallery violates chapter, artist can collect damages up to three times amount of artist’s portion of retail value of artwork. Artist must be paid within thirty (30) days of sale. Requires gallery to attribute artist for work displayed. Any waiver of rights by artist is void.
73 P.S. § 2121 et seq. (2012).
An art dealer after receipt of a work of fine art for purposes of exhibition or sale is the agent of the artist and must hold the artwork and proceeds from the sale of such artwork in trust, creating a fiduciary relationship. Any waiver of rights by artist must be in writing.
R.I. Gen. Laws § 5-62-2 et seq. (2013).
T.C.A. § 47-25-1001. (2012).
An art dealer after receipt of a work of fine art for purposes of exhibition or sale is the agent of the artist and must hold the artwork and proceeds from the sale of such artwork in trust, creating a fiduciary relationship. Any waiver of rights by artist is void, except when a cooperative agrees with its members to waive rights.
W.S.A. Ch. 129.01 et seq. (2012).
An art dealer after receipt of a work of fine art for purposes of exhibition or sale is the agent of the artist and must hold the artwork and proceeds from the sale of such artwork in trust, creating a fiduciary relationship. If Gallery violates this chapter, the artist can void the gallery’s right to compensation. Requires gallery to attribute artist for work displayed. Any waiver of rights by artist is void. Gallery liable to artist for attorneys’ fees and actual damages for violation.
This compilation was researched and written in 2010 by Erin McGowan, a student volunteer attending St. Louis University School of Law. Her work was edited by VLAA volunteer attorney Keisa Johnson. Special thanks to Rebecca Stroder, co-founder of the Kansas City Lawyers and Accountants for the Arts. Ellen Eichner, a student volunteer attending Washington University School of Law, updated this info in 2013.