V&A Collection, LLC v. Guzzini Properties Ltd.

CourtDistrict Court, S.D. New York
DecidedMarch 15, 2021
Docket1:20-cv-01797
StatusUnknown

This text of V&A Collection, LLC v. Guzzini Properties Ltd. (V&A Collection, LLC v. Guzzini Properties Ltd.) 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
V&A Collection, LLC v. Guzzini Properties Ltd., (S.D.N.Y. 2021).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK

V&A COLLECTION, LLC, Plaintiff, 20 Civ. 1797 (KPF) -v.- OPINION AND ORDER GUZZINI PROPERTIES, LTD., Defendant. KATHERINE POLK FAILLA, District Judge: Competing ownership interests in a work by artist Wade Guyton were sold at different times by the same art dealer, Inigo Philbrick, to Plaintiff V&A Collection, LLC (“Plaintiff” or “V&A”) and to Defendant Guzzini Properties, Ltd. (“Defendant” or “Guzzini”). The artwork is currently held by a third party, after being sold by Defendant in November 2019. Plaintiff brought the instant action for conversion, claiming that Defendant interfered with Plaintiff’s ownership interest in the artwork. Now before the Court is Defendant’s motion to dismiss the Complaint on several bases. (Dkt. #27). Finding that it lacks personal jurisdiction over Defendant, the Court grants Defendant’s motion. BACKGROUND1 A. Factual Background Plaintiff V&A is a limited liability company organized under the laws of New York. (Compl. ¶ 8). Defendant Guzzini is a company registered in the

1 The facts in this Opinion are drawn from Plaintiff’s Complaint (“Compl.” (Dkt. #1-1)), as filed in the Supreme Court of the State of New York, County of New York, on February 26, 2020, and removed by Defendant to this Court on February 28, 2020 (Dkt. #1), which Complaint is the operative pleading in this case, as well from the exhibits attached to the Declaration of Wendy J. Lindstrom in Support of Defendant’s British Virgin Islands, with a principal place of business in London. (Id. at ¶ 9). Non-party Modern Collections is a secondary-market art dealership located in London. (See id. at ¶ 16; Lindstrom Decl., Ex. C).

On or about July 1, 2013, V&A purchased from Modern Collections a 50% ownership interest in an artwork by artist Wade Guyton (the “Guyton work”). (See Lindstrom Decl., Ex. C; Grossman Decl., Ex. 2; Compl. ¶ 15). V&A acquired the 50% stake plus $350,000 in exchange for another work V&A had purchased from Modern Collections in 2012. (Compl. ¶ 17; see also Lindstrom Decl., Ex. C; Grossman Decl., Ex. 2). V&A and Modern Collections agreed, as part of the deal, that when the Guyton work was next sold, V&A would receive $850,000, Modern Collections would receive $700,000, and any

additional profits would be split evenly. (Compl. ¶ 18; see also Grossman Decl., Ex. 2). Non-party Inigo Philbrick acted on behalf of Modern Collections in the deal. (See Lindstrom Decl., Ex. C; Grossman Decl., Ex. 2). In June 2017, Inigo Philbrick Limited (“IPL”) — an entity controlled by Philbrick — entered into a purchase and sale agreement (the “June 2017 agreement”) with Defendant Guzzini, through which agreement Defendant acquired three artworks, including the Guyton work, for a total of $6,000,000.

Motion to Dismiss (“Lindstrom Decl., Ex. []” (Dkt. #28)), and the exhibits attached to the Declaration of Judd B. Grossman in Opposition to Defendant’s Motion to Dismiss (“Grossman Decl., Ex. []” (Dkt. #31)). For ease of reference, the Court refers to Defendant’s Memorandum of Law in Support of Its Motion to Dismiss as “Def. Br.” (Dkt. #29); Plaintiff’s Memorandum of Law in Opposition to Defendant’s Motion to Dismiss as “Pl. Opp.” (Dkt. #30); and Defendant’s Reply Memorandum of Law in Further Support of Its Motion to Dismiss as “Def. Reply” (Dkt. #32). (Lindstrom Decl., Ex. D). The agreement warrantied, inter alia, that “[t]he Seller has full legal and beneficial title to the Artworks and is entitled without further action to transfer the legal and beneficial title in the Artworks to the

Buyer on the terms of this Agreement without the consent of any third party.” (Id. at ¶ 4.1.1). The agreement also provided a buy-back option to IPL during a period lasting through August 2018. (Id. at ¶¶ 5-5.6). In a supplemental agreement dated August 28, 2018, Defendant agreed to extend the expiration of the buy-back option for another year, through August 2019, in exchange for an additional option fee. (Grossman Decl., Ex. 3). All other terms of the June 2017 agreement remained in effect. (Id.). IPL did not exercise the buy-back option prior to its expiration. (See Def.

Reply 2). Both the June 2017 agreement and the August 2018 extension document contain choice-of-law provisions specifying that the agreements will be governed by English law. (Lindstrom Decl., Ex. D at ¶¶ 8.7, 8.8; Grossman Decl., Ex. 3 at ¶ 3(b)). On October 30, 2019, Defendant filed an in rem action in the Supreme Court of New York, New York County (the “Stingel action”), seeking to quiet title to an artwork by Rudolf Stingel (the “Stingel work”). See Guzzini Properties Ltd. v. “Untitled by Rudolf Stingel, 2012,” in Rem, Index No. 656467/2019 (N.Y. Sup.

Ct. filed Oct. 30, 2019). Defendant had acquired an ownership interest in the Stingel work from IPL in the same June 2017 agreement through which it acquired an ownership interest in the Guyton work. (Compl. ¶ 12; see also Lindstrom Decl., Ex. D). V&A attempted to intervene in the Stingel action and to obtain an injunction barring Defendant from selling, transferring, or otherwise disposing of the Guyton work pending adjudication of the various parties’ rights under the June 2017 agreement. (See Dkt. #10-5). The state

court denied the request to intervene, as Plaintiff’s claims did not concern the Stingel work, and directed V&A to file a separate complaint concerning the Guyton work. (See id. at 17:6-22). On November 1, 2019, Defendant transferred ownership of the Guyton work to Lanark Services Ltd. (“Lanark”), which has a director in common with Defendant. (Compl. ¶¶ 25, 31; Dkt. #11). The Guyton work is physically located in Switzerland. (Lindstrom Decl., Ex. F, Response to Request No. 1). B. Procedural Background Plaintiff filed suit against Defendant in the Supreme Court of New York,

County of New York, on February 26, 2020. (See Dkt. #1). On February 8, 2020, Defendant removed the action to this Court based on diversity jurisdiction. (See id.). On March 5, 2020, Plaintiff filed a proposed Order to Show Cause seeking authorization to execute service by Federal Express mailing to Defendant’s New York counsel and principal place of business in London, as well as expedited discovery concerning the location of the artwork. (Dkt. #8-10). The Court heard argument on the proposed Order on March 6, 2020, and denied Plaintiff’s requests as moot. (See Minute Entry for March 6,

2020). On April 28, 2020, Defendant filed a pre-motion letter requesting a conference regarding its anticipated motion to dismiss the Complaint. (Dkt. #18). Plaintiff responded on May 1, 2020. (Dkt. #19). The Court held a pretrial conference on May 14, 2020, during which conference the Court authorized limited jurisdictional discovery and set the briefing schedule for

Defendant’s motion to dismiss. (See Minute Entry for May 14, 2020). Plaintiff provided its request for production of documents related to jurisdiction to Defendant on May 21, 2020 (Lindstrom Decl., Ex. E), to which request Defendant responded on July 6, 2020 (id., Ex. F). Defendant filed its motion to dismiss and supporting materials on August 5, 2020 (Dkt. #27-29); Plaintiff filed its opposition on September 4, 2020 (Dkt. #30-31); and Defendant filed its reply on September 18, 2020 (Dkt. #32). The motion is now fully briefed and ripe for resolution.

DISCUSSION Defendant raises four grounds for dismissal: (i) this Court lacks specific personal jurisdiction over Defendant; (ii) this Court is an inconvenient forum for resolution of this action; (iii) Plaintiff has failed to state a cause of action for conversion; and (iv) equity jurisdiction is lacking. (See generally Def. Br.). As explained herein, the Court agrees with Defendant that the Court lacks personal jurisdiction over Defendant.

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