Beskow v. Halow

223 A.D. 434, 228 N.Y.S. 414, 1928 N.Y. App. Div. LEXIS 6230
CourtAppellate Division of the Supreme Court of the State of New York
DecidedApril 27, 1928
StatusPublished
Cited by2 cases

This text of 223 A.D. 434 (Beskow v. Halow) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Beskow v. Halow, 223 A.D. 434, 228 N.Y.S. 414, 1928 N.Y. App. Div. LEXIS 6230 (N.Y. Ct. App. 1928).

Opinion

Martin, J.

The plaintiff was the owner of a valuable collection of paintings and other objects of art. In December, 1922, be [435]*435made an arrangement with the defendant corporation, engaged in the business, as its name implies, of selling works of art, to sell his collection on a ten per cent commission basis. The articles to be offered for sale were delivered to the defendant corporation's place of business in January, 1923. The plaintiff now demands their return, or if sold, that defendant account for the proceeds of the sale.

The particular items for which the defendant has failed to account, except to the extent of $4,500, ate as follows: (1) “ Christ taken down from the Cross,” Van Dyck, $22,000; (2) “Madonna and Child,” Giampetrini, $8,000; “ Madonna,” Massys, $4,500; (3) “ Bathing Nymph,” Diaz, $500; (4) “ Wooden Sculpture,” $500; (5) “ Ante-Pendium,” $200; total $35,800; less ten per cent commission of $3,580, or $32,220, less amount received on account of pictures sold to Fisher of $4,500, leaving $27,720, alleged to be due plaintiff.

In June, 1923, the plaintiff went to Sweden. While absent, the “ Van Dyck ” was delivered on approval to one Vincent D. Cliff of Detroit. The defendant corporation through its officers or employees agreed that if Mr. Cliff kept the “ Van Dyck ” it would take in part payment therefor a picture known as “ Doubting Thomas,” and a Damascus rug, which had been sold and delivered to Mr. Cliff in October, 1922. The “ Doubting Thomas ” and the rug were not the property of the plaintiff, but had belonged to another consignor and in the exchange were to be valued at $14,225 and $2,500 respectively. It is important to note that they appear to have been delivered to the defendant corporation by Mr. Cliff before October 12, 1923, about a year prior to the death of Mr. Halow.

The plaintiff returned to this country in October, 1923, and was then told by Mr. Halow that Mr. Cliff had the “ Van Dyck.” Nothing appears to have been said about the price or the terms of the sale. The picture remained with Mr. Cliff down to the time of the trial.

The plaintiff again went abroad in July, 1924, and on the twenty-fourth of that month Mr. Halow was taken ill. He was operated on two or three days later. Mrs. Halow, a director and treasurer of the company since July, 1922, was given to understand after the operation that her husband would probably not live more than thirty days, whereupon she sent for her brother, Mr. Bradley, to help carry on the business. Mrs. Halow then came into full control of the company; 795 shares out of 845 shares of the stock of the company were transferred to her. In addition she was a large creditor. At'the time of the trial she said the company owed her $11,000.

[436]*436Confronted with the condition brought about by the serious illness of her husband, she wired Mr. Cliff to come to her home at Great Neck, L. I., for a conference. He came in August, 1924, and there were present at the conference Mr. Cliff, Mrs. Halow, Mr. Bradley and the bookkeeper, a Miss Aufort.

The respective claims of Mr. Cliff and the Consignment Arts, Inc., were talked over, and the account adjusted. The statement which was made up at that time is in the record. It shows that there had been an open account between Mr. Cliff and the Consignment Arts, Inc., since 1922; that payments and credits due Mr. Cliff amounted to $59,496.28 and by the account he is debited to the extent of $63,078.78, leaving $3,582.50 due the Consignment Arts, Inc.

A letter was signed by both Mr. Cliff and the defendant corporation settling this account, with the exception of a claim against the Consignment Arts, Inc., on account of certain diamonds delivered by Mr. Cliff's wife and daughter to Mr. Halow. In the account, next to the last item, Mr. Cliff is charged $22,000 for the “ Van Dyck " and he is credited with the “ Doubting Thomas ” at $14,225 and the rug at $2,500. This is in accordance with his letter of October 12, 1923.

Mr. Cliff testified that he had purchased the “ Van Dyck." The court has found that Mr. Cliff bought this picture and that the Consignment Arts, Inc., received in part payment the Doubting Thomas," and the Damascus rug.

The plaintiff returned to this country in 1924 and he then learned of the death of Mr. Halow on September 22, 1924. He saw Mrs. Halow in the latter part of September or the first part of October when she told him that Mr. Halow had died. On inquiry of her about the “ Van Dyck " she told him that it had been sold, and on asking her the price she said she did not know it; that she would have to await the arrival of her brother in New York, in order to ascertain the details. The only information that the plaintiff seems to have thereafter received from Mr. Bradley was that the picture was sold to Mr. Cliff and that he had paid part of the price but not the whole. The record does not disclose what became of the Damascus rug. Mrs. Halow said that she understood that the “ Doubting Thomas ” valued at $14,225 was returned to the owner.

It is apparent that the defendant corporation used the plaintiff's $22,000 “Van Dyck ” to settle the open account of Mr. Cliff; that the defendant paid the plaintiff no cash whatever; that the “ Doubting Thomas," valued at $14,225, was eventually returned to the owner and that the rug, valued at $2,500, has not been [437]*437accounted for. In other words, $22,000 worth of plaintiff’s property has been converted to the use of the defendant corporation.

The Special Term found that the plaintiff is entitled to an accounting from the Consignment Arts, Inc., for the “ Doubting Thomas ” and the 'Damascus rug, and that both the defendants should be charged with $5,275 less ten per cent, being the amount due after deducting from the price of the “ Van Dyck ” the value of the “ Doubting Thomas ” and the Damascus rug.

The plaintiff contends that the Consignment Arts, Inc., and its treasurer, in making this settlement and using the “ Van Dyck ” to settle the account of the Consignment Arts, Inc., violated their trust and that both of these defendants should be charged with the price of the Van Dyck,” $22,000. We believe that the plaintiff is entitled to an accounting from the defendant corporation for the whole $22,000, less ten per cent.

Mr. Cliff had other transactions with the defendant corporation so that the $5,275 was not paid over in cash. The defendant received credit for that amount in its account with Mr. Cliff. The defendant claimed that it had an agreement with the plaintiff that he should receive $8,000 upon the sale of this painting and that the defendant corporation should be entitled to retain any excess. The court very properly rejected that claim.'

The defendant was given the Van Dyck to sell, not to exchange for another picture of doubtful value or for a rug. No permission was given by plaintiff to apply the amount received to the indebtedness due by the defendant corporation to Mr. Cliff. The direction was to sell, deduct the commission and pay over the amount remaining from the sale price of $22,000 less ten per cent to the plaintiff.

With reference to the other pictures, it appears that in the spring of 1924, before the plaintiff went to Europe, he had a talk with Mr. Halow and fixed the price at which two were to be sold, $8,000 for the Giampetrini and $4,500 for the Massys. Mr. Donlan, acting for the Consignment Arts, Inc., sold these pictures in May, 1924, to Frederick J. Fisher of Detroit.

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Bluebook (online)
223 A.D. 434, 228 N.Y.S. 414, 1928 N.Y. App. Div. LEXIS 6230, Counsel Stack Legal Research, https://law.counselstack.com/opinion/beskow-v-halow-nyappdiv-1928.