Bakalar v. Vavra

237 F.R.D. 59, 2006 U.S. Dist. LEXIS 51475, 2006 WL 2089884
CourtDistrict Court, S.D. New York
DecidedJuly 28, 2006
DocketNo. 05 CIV. 3037 (WHP)
StatusPublished
Cited by22 cases

This text of 237 F.R.D. 59 (Bakalar v. Vavra) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bakalar v. Vavra, 237 F.R.D. 59, 2006 U.S. Dist. LEXIS 51475, 2006 WL 2089884 (S.D.N.Y. 2006).

Opinion

MEMORANDUM AND ORDER

PAULEY, District Judge.

Defendants and Counterclaim-Plaintiffs Milos Vavra (‘Vavra”) and Leon Fischer (“Fischer”) (together, the “Heirs”) move pursuant to Rule 23 of the Federal Rules of Civil Procedure to certify a defendant class comprised of six subclasses. The subclasses consist of private individuals, museums, art dealers and others involved with artworks that were part of the estate of Fritz Grunbaum (“Grunbaum”). The Heirs seek to name the following Counterclaim-Defendants as class representatives: David Bakalar (“Bakalar”), The Museum of Modern Art (“MoMA”), Neue Galerie, Oberlin College (“Oberlin”), Sotheby’s, Inc. (“Sotheby’s”) and Schenker, Inc. (“Schenker”) (collectively, the “Counterclaim-Defendants”). For the following reasons, the Heirs’ motion for class certification is denied.

BACKGROUND

On March 21, 2005, David Bakalar commenced this action seeking a declaratory judgment that he is the rightful owner of a drawing by Austrian expressionist artist Egon Schiele (“Schiele”) known as Seated Woman with, Bent Left Leg (Torso) (the “Drawing”). (Complaint, dated Mar. 21, 2005 (“Complaint” or “Compl.”) II4.) It is estimated that prior to his death in 1918, Schiele created over 2,700 drawings. (Declaration of Jane Kallir, dated Jan. 27, 2006 (“Kallir Deck”) at IT 2; Transcript of Oral Argument on Apr. 27, 2006 (“Tr.”) at 7.)

Bakalar is a prominent Massachusetts businessman and philanthropist. (Compl.H 4.) In 1964, he purchased the Drawing from a New York art dealer for a nominal sum. (Declaration of William L. Charron in Support of Bakalar’s Opposition to Motion for Class Certification, dated Mar. 10, 2006 (“Charron Deck”) H14.) He kept the Drawing until 2004, when he consigned it to Sotheby’s for sale. (Charron Deck If15.) In February 2005, Sotheby’s auctioned the Drawing in London for approximately $726,000. (Charron Deck f 15.) The sale was never consummated because the Heirs asserted a claim to the Drawing. (Compl.H10.) Through their attorney, the Heirs informed Sotheby’s that the Nazis expropriated the Drawing from Grunbaum in 1938, and that as his legal heirs they are the proper titleholders. (Comphfl 10.)

In 2002, an Austrian court declared Vavra and Fischer to be the legal heirs of Grunbaum’s estate. (First Amended Counterclaims and Answer, dated Feb. 6, 2006 (“Answer”) HH 243, 247.) Grunbaum was a well-known cabaret performer who resided with his wife Elisabeth in Vienna prior to World War II. (Compl.H 22.) Grunbaum and his wife were Jewish. (Answer H 252.) They owned an extensive art collection, including many works by Schiele. (Compl.H 22.) On April 1, 1938, the Nazis arrested Fritz Grunbaum and placed him in the Dachau concen[62]*62tration camp, where he died in 1941. (Answer H 91; Declaration of Herbert Gruber in Support of Class Certification, dated Jan. 5, 2006 (“Gruber Decl.”) at H 29.) Thereafter, on July 20, 1938, the Nazis evicted Elisabeth Grunbaum from the apartment. She was arrested and died in the Maly Trostinec concentration camp in 1942. (Answer 11245; Gruber Decl. 1129.)

Following Elisabeth Grunbaum’s eviction, Dr. Franz Kieslinger, an alleged agent of the Nazis, inventoried the Grunbaum art collection in the Vienna apartment. (Answer 1ÍH 103, 249 & Ex. B: Inventory of Grunbaum Art Collection by Dr. Kieslinger (“Kieslinger Inventory”); Gruber Decl. 1129.) The Kieslinger Inventory reflects over 450 individual works, including 81 by Schiele, which are described as follows:1

1. E. Schiele The Self Seers, oil on canvas
2. “ Portrait of a Woman, oil on canvas
3. “ Town by a River (Dead City)
4. “ Small Landscape with Trees
5. “ Ships in the Harbor
* * *
37. Large drawings by Schiele, 55 works colored a. 20 drawings and 1 print from Schiele

(Answer Ex. B.) Only five of the 81 Schieles included in the Inventory are identified by title. (Answer Ex. B.)

Following Kieslinger’s inventory, approximately 420 Grunbaum works were deposited with a storage company, Schenker & Co. A.G. (“Schenker & Co.”). (Answer 11257 & Ex. C: Schenker & Co. Request for Export Permit, dated Sept. 8, 1938). An invoice prepared by Schenker & Co. (the “Schenker Invoice”) describes this artwork in broad categories such as “10 Drawings” and “278 Drawings, some in color.” (Answer Ex. C.) The Heirs contend that in 1931, the German Railways, a Nazi enterprise, acquired Schenker & Co. and, thus, Schenker & Co. “was acting as an instrumentality of the Nazis and ... expropriating [Grunbaum] property.” (Answer HH112-13, 260.)

What happened to the Grunbaum art collection between 1938 and 1952 is a mystery. (Compl.H 25.) Beginning in 1952, many works resurfaced in Switzerland. (Compl.H 29.) Eberhard Kornfeld (“Kornfeld”), a gallery owner in Bern, Switzerland, maintains that between 1952 and 1955, Mathilde Lukács (“Lukács”), the sister of Elisabeth Grunbaum, delivered many works to him for auction or private sale. (Charron Decl. H16 & Ex. 8: Collection of Kornfeld Correspondence.) At least 45 of these pieces were Schiele works. (Charron Decl. Ex. 8(g): Lists of Schiele Work Purchased from Lukács.) Kornfeld contends that in 1998 he learned that the Lukács artwork came from the Grunbaum collection when the Reif family approached him as purported Grunbaum heirs.2 (Charron Decl. Ex. 8(f): Letter from Kornfeld to Gruber, dated Feb. 7, 2006.)

Vavra and Fischer dispute Kornfeld’s account. (Answer 1111272-75.) Herbert Gruber (“Gruber”), the Heirs’ genealogical consultant, attests that “[o]ver time, Kornfeld has told many inconsistent stories to the press and in correspondence about what Ma-tilde [sic] Lukács told him about the provenance of the works that she allegedly sold to him.” (Gruber Decl. 1135.) On February 7, 2006, Kornfeld responded to these assertions by challenging Gruber’s declaration as untruthful and noting that Gruber never contacted him. (Charron Decl. Ex. 8(f).)

When the Heirs answered the Complaint, they interposed two counterclaims against Bakalar and a putative class of defendants concerning the ownership of the Grunbaum art collection. (Verified Answer and Counterclaims, dated June 1, 2005 HIT 230 — 46.) Following discovery on the proposed defendant class, the Heirs advanced seven counterclaims against Bakalar, MoMA, Neue Galerie, Oberlin, Sotheby’s and Schenker individually and on behalf of a putative class [63]*63of similarly situated defendants, The proposed defendant class consists of:

[A]ll persons having taken possession of, asserting ownership in, actually possessing, or who have derived revenues or commissions from the sale of artworks originating from the estate of Fritz Grunbaum from September 8, 1928 to the present.

(Answer 11193.) Vavra and Fischer seek to divide this class into six subclasses, each represented by one of the named Counterclaim-Defendants:

A. By Bakalar: all private individuals currently in possession of and claiming ownership to artworks originating from the estate of Fritz Grunbaum;

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Bluebook (online)
237 F.R.D. 59, 2006 U.S. Dist. LEXIS 51475, 2006 WL 2089884, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bakalar-v-vavra-nysd-2006.