UK Losing Counsel Series: ACLBDD Holdings Ltd And Others v Staechelin And Others

Were trustees liable for $10m commission on sale of Gauguin painting to Emir of Qatar?

We welcome James McCreath of Wilberforce who will talk through this attempt by trustees to argue that right to a commission on a $210,000,000 sale of a Gauguin painting to the Emir of Qatar had either never accrued, or had been forfeited by the agent's breach of fiduciary duty. Until the trial, the painting had been widely believed to be the most expensive ever sold.

The case in brief

Rudolf Staechelin, a Swiss art collector, bought the Gauguin in 1917. Along with other works of art the Gauguin passed into a Swiss based, New York law, family trust. At the time of the dispute the three trustees were Rudolf's grandson Ruedi Staechelin, an English solicitor and a New York attorney.

The claimants were Mr and Mrs Dde Pury and associated companies. They specialise in art consultancy, advising on sales and purchases of art, and act as brokers. Mr de Pury has been described as 'the Mick Jagger' of art auctions.

Mr De Pury had been at school with Ruedi and from about 2012 onwards was engaged in discussions about a potential sale of the Gauguin to the Emir. Shortly before the sale completed, Ruedi became convinced that Mr De Pury had misled him about a previous...