Auction house sued for selling Einstein's letters at throwaway prices
What's the story
A legal battle has broken out between Christie's Auction House and banking tycoon Jacqui Safra, over the alleged underpriced sale of his collection.
The collection featured 55 letters written by Albert Einstein to his first wife, Mileva Maric.
Safra alleges these letters were sold for a paltry $432,000, much lower than their estimated worth of $1.3 million to $2 million.
Legal battle
How did the dispute begin?
Safra has filed a lawsuit in the Manhattan Supreme Court, claiming that Christie's sold a large part of his collection at "fire sale" prices.
The total value of these sales is said to be around $37.5 million.
The legal action comes after a disagreement over an alleged $63 million advance that Safra reportedly defaulted on, Christie's said.
Agreement
Safra's agreement with Christie's
Safra claims his deal with Christie's permitted him to determine the sequence in which his collection was sold.
He planned to use the money from earlier sales to repay the advance in full, thereby keeping pieces with sentimental value.
However, by 2023, Christie's had notified Safra of an alleged default on his advance and started liquidating pieces that were personally valuable to him.
Accusations
Safra accuses Christie's of manipulating loan default
Safra has so far repaid $45 million of the advance, including $37 million from his collection sales and another $8 million in cash. He accused Christie's of fabricating loan default to expedite sale of his works during a financially challenging period for the auction house.
Spokesperson statement
Safra's spokesperson defends his decision to sue Christie's
Safra's spokesperson Melanie Bonvicino defended his decision to take legal action against Christie's.
She described him as "a distinguished financier, philanthropist and art connoisseur who has stewardship of one of the world's most important art collections."
Bonvicino also emphasized that this step was taken after careful consideration, highlighting Safra's commitment to fairness and justice in all his endeavors.
Auction halt
Safra seeks to halt upcoming auction, Christie's denies breach
Meanwhile, Safra is seeking judicial intervention to stop a scheduled auction in February.
Bonvicino hoped that Safra's case will be heard by a judge soon.
Responding to the allegations, a Christie's spokesperson said they didn't violate the agreement with Safra and "the property was sold in accordance with the agreement."