When galleries go bust, artists and collectors can struggle to recover their works—here, legal experts offer advice
Without proper written agreements, consigners sometimes find themselves in a protracted and costly process
Artists and collectors left without written agreements often struggle to recover works that were consigned to galleries when those galleries go bankrupt. Petra Warrington, a London law firm expert, advises consignors to quickly contact liquidators, assert their ownership rights, and provide evidence of title. Insolvency practitioners typically require documentary proof of ownership, which can be challenging to obtain in the art market where verbal agreements are common.
Even when title is established, securing release from storage providers can take months and may require payment, despite the lack of a legal basis for the consignor's liability. Proving title is crucial and a consignment agreement that clearly states ownership remains with the consignor, while the gallery acts as an agent, is the most effective protection.
If no formal agreement exists, emails, WhatsApp messages, inventory records, transport documents, or insurance policies can be used to establish title. Artists can also register disputed works with the Art Loss Register (ALR) to be notified if a gallery or administrators attempt to sell them without consent. Speed is vital, as the more transactions an artwork undergoes, the more difficult it becomes to regain control.
Some galleries may attempt to retain works as leverage during disputes over commissions or expenses. To avoid such issues, galleries should seek legal advice early, maintain up-to-date inventory and consignment records, and never move, sell, or encumber works without proper advice when insolvency is a concern.
Written by urgent.news from The Art Newspaper's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
