Alexander Melamid sued the two investors who bought his paintings for resale

It has long been known that investing in art - a good thing and very helpful. However, world-renowned Russian artist Alexander Alexander Melamid was forced to because of disagreements with the two investors to file them in court.

The case began in 2005. Hoffeld Jeffrey (Jeffrey Hoffeld), now assistant dean of the New York Studio School of Drawing, Painting and Sculpture (New York Studio School of Drawing, Painting and Sculpture), together with the Rector Neil (Neil Rector), a consultant on insurance from the city of Columbus, Ohio, Melamid approached with a proposal to buy him for 1.2 million dollars in 12 paintings. They are interested in paintings of «Hip-Hop series», which included large-scale portraits of stars of hip-hop music, such as 50 Cent and Snoop Dogg, performed in the classical style typical of paintings by old masters. By opening a joint campaign of Russian Collections Ltd., They have entered into an agreement with the artist on the purchase of works for the purpose of resale. According to Alexander Melamid, they even claimed to be able to find buyers willing to pay 450 thousand dollars for each.

Perhaps all really had to, as planned, if economic circumstances have not changed the art market. The works on display at two exhibitions at Forum Gallery in New York and Los Angeles, where they can be purchased for 200 thousand dollars. However, as the author suggested, none of the paintings to sell to investors or not. Because of this Hoffeld and the Rector did not hold him in London a new exhibition, which was opened in May at the premises of Phillips de Pury & Co., as well as sponsored auction house space gallery of Charles Saatchi . In the exhibit, in addition to portraits of hip-hop artists should enter canvases with images of the clergy and the Russian oligarchs.

The fact is that one of the terms of the agreement, new pictures «Hip-Hop series» the artist is obliged first to offer Russian Collections Ltd., and only in case of refusal, he can sell them to others . The value of paintings to have at least 90 percent of the maximum acceptable retail price fixed by two investors, or their gallery. In an interview Artnet News Alexander Melamid told that it could find buyers willing to pay for the work from an exhibition in London of 80-150 thousand dollars but Hoffeld Rector and insisted on a price of 270 thousand. Since then, angry artist, and filed a lawsuit in the Supreme Court of New York, accusing them of breach of contract, fraud and illegal interference in the conduct of its exhibitions. Particular outrage Alexander Danilovich also caused by the fact that investors have even appealed to the courts of Ohio with the intent to remove him from painting for seven years.

Representatives of Russian Collections Ltd. in his defense claim that a written agreement with the investors in fact violated by the artist himself, that the company is confident in the correctness and, if necessary, take appropriate action.

It should be noted that Alexander Melamid did was not in itself a bad situation. Of the 1.2 million dollars that it originally relied on the contract, he received almost the entire amount, with the exception of the last contribution of 150 thousand, ie, a total of about 1.05 million dollars. The validity of its contract with the two investors will expire on 31 March 2010. Perhaps, but in this case and there will be some clarity.

material produced Catherine Onuchin, AI

Sources: artnet.com , artinvestment.ru