Insurers Aim to Deny $20 Million Claim Over Basquiat Artwork Dispute

Insurers are fighting to block a $19.7 million claim for Basquiat art seized by the FBI, claiming the works are forgeries.

Insurers Aim to Deny $20 Million Claim Over Basquiat Artwork Dispute
Insurers Aim to Deny $20 Million Claim Over Basquiat Artwork Dispute

Orlando: The owners of some art taken by the FBI from a Basquiat exhibit are in a tough spot. They’re trying to collect nearly $20 million from their insurance.

Liberty Mutual and Great American insurance companies want a court to rule against this claim. They argue that the artwork is still in FBI custody and, more importantly, that it’s worthless because it’s fake.

The insurers say, “Coverage is unavailable because the property alleged to have been lost does not constitute covered property inasmuch as the property was inauthentic.” Basically, they’re saying the art has no value and should be destroyed.

The FBI hasn’t said what’s happening with the paintings since they were taken. A California auctioneer admitted to making some of the pieces and passing them off as Basquiat’s work.

The owners, known as the Basquiat Venice Collection Group, insist the art is real. Their attorney, Pierce O’Donnell, believes Barzman lied to dodge the FBI’s investigation.

Even though the Orlando Museum of Art is involved in this case, they won’t face any financial hit. The museum took out the insurance policy, but they won’t get any money from it. Their executive director, Cathryn Mattson, explained that they’re not liable since the FBI seized the paintings.

The museum paid $54,600 for the policy, and the owners filed their claim in January 2024.

Interestingly, the insurance companies are using the museum’s lawsuit against its former director to back their case. The museum originally sued him and the owners, claiming they knew the art was fake but still went ahead with the exhibit.

The insurers argue that there’s no real loss since the paintings are just being held by the FBI and are undamaged. They also claim the owners should have known the art was counterfeit.

O’Donnell’s group wants the case moved to federal court, as the owners are from different states. But the insurers and the museum think it’s better to combine this case with the museum’s lawsuit against the former director since they’re all about the same issue: the art being fake.

Despite the legal drama, the museum is doing well this year. After a tough financial period, they’ve reported a positive fiscal year and a big jump in attendance and memberships.

They’re also making progress on repairing the museum’s roof, thanks to some funding from Orange County. While it’s not the most exciting project, it’s crucial for the museum’s future. They’re looking ahead as they approach their 101st year.

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