Joyce Newmann
You may have followed the story about the Somali pirates who captured a Ukrainian ship carrying arms cargo. Very serious stuff indeed.
But have you read allegations over the past few years of a different type of alleged piracy occurring on the high seas?
If you’ve cruised recently on Royal Caribbean, Celebrity, Carnival, Disney or other major cruise lines, you may have noticed or participated in their at-sea art auctions.
These auctions promote pieces by Picasso, Dali and even Rembrandt. Buyers are often told the works are “good investments.” I’ve been asked to appraise art works purchased at these auctions and in some cases have had to impart bad news to the owners. The art isn’t worth what the client paid - sometimes not even close.
Last year the New York Times did a piece about Park West Gallery, a Michigan company that conducts cruise ship art auctions. Jori Finkel, the author, interviewed a number of dissatisfied art auction customers. Customer complaints ran the gamut: Poster type prints represented as museumquality Picasso prints; Dali prints described as good investments and other works offered at 40 percent off their appraised value.
The Times also reported that appraisals received on the ship described the art’s value as “the price a client would have to pay to replace the work through a reputable retail art gallery” while the appraisals shipped to buyers with their purchases cited the definition as the “current Park West Gallery retail replacement price.” That’s tantamount to buying a house based on an appraisal by an independent appraiser versus accepting the owner’s word for the home’s value. The numbers might be quite different.
Lawsuits and counter suits involving cruise ship art auctions abound. Early last year two class action lawsuits were filed against Park West Gallery. In the suits, the plaintiffs accused the company of misrepresenting the value of its artwork and are seeking unspecified damages for unfair trade practices, among other complaints.
For their part, cruise lines receive a percentage of art auction revenues as well as a minimum rental fee from the auction company, according to the Times article.
Because these auctions occur in international waters, there’s a question of which, if any, law enforcement agency has jurisdiction.
The bottom line at these auctions, as at any auction, is caveat emptor - let the buyer beware. If it sounds too good to be true, it may be. And always do your homework before you spend big chunks of money - especially in these financial times.
For more information, check out these Websites:
• American Bar Association Journal