Wesselmann v. International Images, Inc.

169 Misc. 2d 476, 645 N.Y.S.2d 263, 38 U.S.P.Q. 2d (BNA) 1780, 1996 N.Y. Misc. LEXIS 184
CourtNew York Supreme Court
DecidedApril 16, 1996
StatusPublished

This text of 169 Misc. 2d 476 (Wesselmann v. International Images, Inc.) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wesselmann v. International Images, Inc., 169 Misc. 2d 476, 645 N.Y.S.2d 263, 38 U.S.P.Q. 2d (BNA) 1780, 1996 N.Y. Misc. LEXIS 184 (N.Y. Super. Ct. 1996).

Opinion

OPINION OF THE COURT

Beverly S. Cohen, J.

This is a case of first impression involving the interpretation of section 12.01 of the Arts and Cultural Affairs Law. The issues presented are, inter alia, (1) whether a publisher and seller of multiples and prints conceived by an artist is an art merchant as defined by the statute, and (2) whether the artist who conceives the image, delivers it to a printer chosen by the publisher, approves the final prints, and signs them has delivered a "print of his own creation” to an art merchant.

Plaintiff Tom Wesselmann Studios, Inc., moves for an, order granting the following relief: (a) granting leave to amend the complaint to add Karla MacKay Graphics, Inc., Karla MacKay Editions, Inc., and Dedicated Arts, Ltd., as party defendants, and Tom Wesselmann and Claire Wesselmann as party plaintiffs; (b) enjoining defendants during the pendency of this action from transferring, selling, assigning, pledging, exploiting, licensing, conveying, copying, duplicating, disposing of, or doing any other act, either directly or indirectly, that prevents plaintiffs from exercising complete dominion or control over any art created by Tom Wesselmann, except for art created by him but acquired by defendants from independent third parties in which Tom Wesselmann is not a joint owner (hereinafter the Art); (c) directing defendants to turn over the Art to a person chosen by the court, without security; and (d) granting a voluntary discontinuance of the action against defendant MacKay-Cooper, Inc. (MCI).

The complaint names Tom Wesselmann Studios, Inc. (Studios) as the sole plaintiff. Studios, which is owned by Tom Wes[478]*478selmann and his wife Claire, was formed sometime after 1990 to acquire joint title with International Images, Inc., to a building located at 30 Cooper Square in Manhattan. Plaintiff wishes to amend the complaint to add Tom Wesselmann and his wife individually as plaintiffs because the owner of the Art may be determined to be one or both of the Wesselmanns individually or their corporation.

Plaintiff also seeks to add Karla MacKay Graphics, Inc. (KMG), Karla MacKay Editions, Inc., and Dedicated Arts, Ltd., as defendants because these entities have allegedly sold some of the Art and may have possession or control of the Art that remains unsold.

The motions to amend are granted and the amended complaint attached to the moving papers is deemed operative for purposes of this motion, although the new corporate defendants have not yet been served with process and are therefore not yet subject to this court’s jurisdiction. There is no reason not to join the parties who own, possess, control, or have sold the Art and there will be no prejudice to defendants from the granting of this motion since the individual defendant Karla MacKay owns and controls the new corporate defendants.

The motion to discontinue the action against MCI is also granted. The parties agree that any dispute involving the building at 30 Cooper Square is subject to an arbitration agreement. Moreover, the amended complaint contains no allegations regarding and seeks no relief from MCI.

Wesselmann is a world-renowned artist for his work in paintings, sculpture, drawings, and prints. From 1988 until November 1993, all of his limited edition prints were marketed by International Images, Inc. (Images), which is wholly owned by Hugh and Karla MacKay. It is undisputed that through their efforts the value of plaintiff’s work was greatly enhanced.

Hugh and Karla MacKay are husband and wife. They are currently in the process of obtaining a divorce.

The prints were produced from silk screen masters or lithographic plates. It is undisputed that Wesselmann conceived the images for all of the prints.

The process by which most of Wesselmann’s multiple editions were created was that a maquette, a painting, or a lithographic plate of Mr. Wesselmann’s and a color chart work were delivered to a printer hired by the MacKays. The printer would actually create the metal screens from which the prints would be made, or would work from a lithographic plate drawn [479]*479on by Mr. Wesselmann. The parties agree that Mr. Wesselmann would then approve a trial print. After the prints were made, Mr. Wesselmann would sign the ones to be sold.

The parties dispute the issue of delivery of the prints. Mr. Wesselmann claims that he went to the printers, reviewed the trial and final prints, and signed the ones that he approved. Mrs. MacKay contends that the printer delivered the proofs to her for her approval before Mr. Wesselmann signed them.

The parties also dispute their respective roles in supervising the printer. Karla MacKay claims that Mr. Wesselmann "refused to supervise the printing of a single portfolio” (affidavit of Karla MacKay 53). However, plaintiffs submit several affidavits (copies only have been provided to the court) from independent printers which support their claim that Mr. Wesselmann was intimately involved in supervising the printing process.

The agreement between Wesselmann and Images, which was signed by Images’s President Hugh MacKay, is dated August 25, 1988. It provides that:

"On all sales of your works, published by us, the gross profit after expenses of advertising, printing, freight, paper, and related printing expenses, but not sales and travel expenses, will be divided equally (50% / 50%) between us * * *

"A recapitulation of sales, expenses, and monies due will be created on a monthly basis. Payment based upon collected sales will be included with the recapitulation, which will be submitted by us within 30 days after the end of the month which it represents” (moving affidavit, exhibit A [hereinafter the Agreement]).

In November of 1993, Mr. Wesselmann terminated the Agreement because of Hugh MacKay’s poor health and the MacKays’ failed marriage and consigned all prints returned by Images to KMG for marketing.

On March 30, 1995, Karla MacKay (Karla), Dedicated Arts, Ltd. (DAL), Studios, and Mr. Wesselmann entered into a stipulation during the pendency of this action giving Karla and DAL the right to sell certain prints and providing for the proceeds to be submitted to a locked box at the Sterling National Bank.

The first and second causes of action in the complaint are for breach of fiduciary duty and violation of the Arts and Cultural Affairs Law, respectively. They both seek permanent injunctive relief. It is alleged, inter alia, that plaintiff believes that [480]*480defendants, particularly Karla, have removed plaintiff’s artwork from the State of New York, have refused to return it to him, have sold it clandestinely, and have failed to pay plaintiff his share of the proceeds.

Most importantly, it is alleged that the MacKays took possession of the Art as trustees of plaintiff pursuant to the Arts and Cultural Affairs Law.

The record supports many of these claims. Exhibit I to the moving papers is a statement prepared by defendants stating that as of December 31, 1993, they owed Mr. Wesselmann $334,187.16. A quotation from an affidavit filed by Karla in her divorce proceeding admits that the Art was "consigned by [Mr. Wesselmann] in trust to Images” and that "the proceeds derived from the sale of [Mr. Wesselmann’s] art work by Images * * * by statute are deemed to constitute trust funds” (affidavit of Wesselmann ¶ 8, at 3).

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Related

§ 6301
New York CVP § 6301

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Bluebook (online)
169 Misc. 2d 476, 645 N.Y.S.2d 263, 38 U.S.P.Q. 2d (BNA) 1780, 1996 N.Y. Misc. LEXIS 184, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wesselmann-v-international-images-inc-nysupct-1996.