V&A Collection, LLC v. Guzzini Properties Ltd, No. 21-664 (2d Cir. 2022)
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Art dealer Inigo Philbrick sold V&A Collection, LLC an ownership interest in artwork by Wade Guyton (the “Guyton”). In a second transaction, made without V&A’s knowledge or participation, Guzzini Properties Ltd. purchased the Guyton, an artwork by Rudolf Stingel (the “Stingel”), and a third painting. Guzzini removed the second action to federal court and then moved to dismiss for lack of personal jurisdiction. V&A argued that by suing to quiet title to the Stingel in New York state court, Guzzini consented to submit to the jurisdiction of New York courts for all claims arising out of the same agreement. The district court found that because the two lawsuits did not arise out of the same transaction, Guzzini did not implicitly consent to litigate the dispute over the Guyton in New York.
The Second Circuit affirmed. The court explained that the two key elements of conversion are (1) plaintiff’s possessory right or interest in the property and (2) defendant’s dominion over the property or interference with it, in derogation of plaintiff’s rights. Here, the court explained that V&A’s conversion claim is premised on its assertion that it has “a possessory right to and at least a 50% ownership interest in the Guyton”. These assertions, if satisfactorily established, could allow V&A to prevail on its conversion claim regardless of the outcome of the state court action. Even if the state court declares the June 2017 Agreement void, that would not settle the question of whether V&A had a “possessory right or interest in the property.” Thus, to bring its claim, V&A must find a court able to exercise jurisdiction over Guzzini.
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