Blowing off some steam

Hey folks,

Just wanted to share my an unfortunate situitation im going through with you all.
I've had some of my art work in a restaurant downtown Toronto for a few years now on consignment. I heard from the restaurant owner the other day that he sold the restaurant buy had excluded my art in the sale of the restaurant. He gave me the contact info for the new owners and suggested I get ahold of them to schedule a time I could pick up my belongings. I contacted the new owners yesterday and they told me they were unaware that the art had been excluded but they would look deport into it. They called me back today and told md the best they could do is sell me back my posessions at the ticket value I had priced them at. As it turns out I would have to pay 3000 dollars to get my stuff back. I've been trying to contact the restaurant owner I had the arangement with but he will not get back to me. I think I'm **** out of luck and now just trying to blow off some steam.

Walk in there and just take it. It's yours. That's EXACTLY what I'd do.
I can't Believe the new owners, and old for that matter, would behave in such a way!

That really sucks, I don't know about commercial real estate transactions, but when I bought my condo (also in Canada but in Manitoba) a few years ago there was a section in the offer to purchase where I had to specify what was included such as chattels and fixtures, the art would probably be considered the former and should generally be excluded unless stipulated in the sale. I am not a lawyer, but the sale should be a legal transaction so if it were me I would get in contact with the seller for a copy of the agreement and then go from there. Hope everything works out.

Aww naw hell naw! +1 on what Marc said. IT'S YOURS!! Man I'm getting heated just trying to comprehend how anyone can be so damn selfish! Let me know if you wanna borrow this from me. http://gizmodo.com/5866522/knuckle-meat-pounder-to-beat-the-crap-out-of-your-steak

I am not sure about Canadian laws, but if they are similar to US...

Was there an agreement signed with the previous owner to hang your art as consignment? That document alone would be enough to retrieve the art.

If not, it would be a much more difficult process. Basically the previous owner is at fault. Even though there are inventory lists used in sales of businesses, like Tjangula mentioned, once the keys are exchanged (unless it is stipulated otherwise in their contract), all items on the premises are considered exchanged as well. Now this doesn't mean you're out of luck, but you'll need to file in small claims court against the previous owner. He is responsible for giving you the $3000 to either keep or retrieve your property. In court it is his burden of proof to prove that he owns those properties to sell with receipt or other written agreement with you. You won't need to hire an attorney either.

Again, this is based on US laws and I'm fairly certain they are similar in Canada (with the exception of limits for small claims court).

Living in the land of litigation as I do, I'd have a lawyer call them (that wouldn't cost too much) and explain your intent to litigate (that's what would happen in Kalifornia) and I bet they would roll over. it's worth a try.

JohnF said:

I am not sure about Canadian laws, but if they are similar to US...

Was there an agreement signed with the previous owner to hang your art as consignment? That document alone would be enough to retrieve the art.

If not, it would be a much more difficult process. Basically the previous owner is at fault. Even though there are inventory lists used in sales of businesses, like Tjangula mentioned, once the keys are exchanged (unless it is stipulated otherwise in their contract), all items on the premises are considered exchanged as well. Now this doesn't mean you're out of luck, but you'll need to file in small claims court against the previous owner. He is responsible for giving you the $3000 to either keep or retrieve your property. In court it is his burden of proof to prove that he owns those properties to sell with receipt or other written agreement with you. You won't need to hire an attorney either.

Again, this is based on US laws and I'm fairly certain they are similar in Canada (with the exception of limits for small claims court).

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This is the correct answer. If you have a written consignment agreement with the previous owner, he is responsible to you for the agreed selling price. If you don't have a written agreement you may still be able to recover the money, but it will be harder and depend on the content of your correspondence. In the latter case I would recommend consulting an attorney (just to help figure out your options if nothing else).

Good luck,
Mikey

This is slimy but if you contact a buzz oriented food writer in the area of the restaurant a little online press about the situation would probably get you your paintings back. A change in ownership is a terrible time for negative press.

Sometimes slimy is the only recourse. Lawyers are good at that.

I would probably ask layer and advice and would keep the 'walk in & take it' as a last resort as that could also fire back. Publishing the story - if you have the means - should help too. One way or another - I would tend to act fast, before your artworks disappear for good.

Chuckles said:

This is slimy but if you contact a buzz oriented food writer in the area of the restaurant a little online press about the situation would probably get you your paintings back. A change in ownership is a terrible time for negative press.

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Chuckles nailed it. If you go in there and try and take something off the wall that's a good way to get yourself hurt. Even if you are in the right.

Matus said:

... Publishing the story - if you have the means - should help too. One way or another - I would tend to act fast, before your artworks disappear for good.

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Great idea, if you find a way. Now Magazine, I dunno, ... I forget the other TO magazines; maybe there's a way as you'd certainly have some readers on your side and a new resto'd want to avoid bad PR.

Hopefully you have something in writing about your arrangement with the original owner, even if it is just in emails. If so, file a small claims suit against him, or have an attorney write him a letter. He is the one who owes you and/ or is responsible for returning your artwork, not the new owners. You would need to see the sales contract to know what, if anything, was indicated, and I doubt the new owners would freely allow you to see that document. If you do have written documentation from original owner about your arrangement, and you cannot reach him than bring that documentation and show new owner, so at least they know you have a legitimate claim. If that gets you no where another option may be to visit the local police office and talk to someone there.

Thanks everyone for the great advice and comments. I finally got in touch with the original owner today and I may be now getting some where. I will keep you all posted on the out come.

Btw, I have no written contract of the original agreement. Also, the restaurant is now closed for renovations so I can not just go in and take my stuff back like I would like to do. The new owners are having a content sale this Saturday where they plan on selling my things, I hope I can reach an agreement with them before this happens.

stand outside the sale and let people know the ownership of the artwork is in debate, and if they purchase they may find themselves eating the cost when they have to return what is essentially stolen goods. And let the new owners know that as well. Not a fun way to spend a Saturday, but if it keeps you from using $3k it may be worth it.

They can't sell something they don't own. The stuff is yours. It did not belong to the original owner. Original owner can't pass ownership of something he does not own to the new owner. Would think a visit to the local police station could at least put any sale of your property in abeyance.

It the same as if I buy a car that was stolen, the original owner still owns it and I'm likely hosed.

Dude, talk to a lawyer, do it now. If you don't have a written consignment agreement it's on you to prove that it's your property. The old saying that possession is 9/10ths of the law is a myth, but in this case it kinda applies. If you don't think the work is worth the cost, then move on and chalk it up as a learning experience.

Aa a precautionary step you should write, today, right now, to the firm that is running the consignment sale and assert ownership of your items. They are unlikely to want to get involved in a dispute and you have nothing to lose from this step. Once the goods are sold, you have tracing issues and yet another party in the chain.

Adrian said:

Aa a precautionary step you should write, today, right now, to the firm that is running the consignment sale and assert ownership of your items. They are unlikely to want to get involved in a dispute and you have nothing to lose from this step. Once the goods are sold, you have tracing issues and yet another party in the chain.

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I would even suggest having a courier deliver the letter so you get a signed receipt. You are running out of time.

Yes act fast. Was the artwork offered for sale or just on loan as décor in the restaurant. Adrian good advice , don't be pushed around get legal documents now from past owner.

So...as it turns out the new owners had kind hearts and allowed me to have my property back.
I learnt many lessons throughout this whole process, thanks everyone for all of the help and advice. Next time I enter a situitation similar to this I will be much better prepared.

Glad to hear this had a happy ending. I wonder if they had a legal opinion or finally looked over the paperwork and realized the mess they'd end up in had they sold your property. Anyways it's good to be able to put it behind you.

The original owner avoided me like the plague until I was able to get his home phone number from the hew owners.
It sounds like he didn't exclude my property from the sale of the restaurant. When I did finally get to talk to him he was drunk and pissed off. He wasn't real clear on wether he excluded my things or not. He said he didn't think he had a copy so the sales agreement which I believe to be bs, but he was willing to craft on email to the new owners as well as the lawyers for both parties. His email was very convincing and in the end the new owners stated they were patrons of the arts and knew the whole ordeal was not a fault of mine. They said however they felt duped but would allow me to come gather my belongings.

I was wondering how this worked out. I'm glad it worked out in your favor. Sounds like the parties on both sides were rather sphincter-like and you were caught in the middle. Win for you!

There have definitely been some good nuggets on this thread as it relates to your best course of action. Prior to adding a few thoughts it's worth mentioning that I'm not a contract, credit, personal property, or even a real estate attorney, all which might have expertise at play in this situation. I do, however, work in the highly litigious field of M&A (albeit in the US). In a typical acquisitions, the seller provides fundamental representations and warrants related to the operations, assets and liabilities/potential liabilities of their company, violations or misrepresentations of which are indemnified by the seller. There are items which can be excluded from indemnification brackets, but said items are clearly listed on schedules to the Purchase Agreement.
Long story short, I'm thinking the seller, in the event this was a stock sale, failed to list your artwork on the relevant schedule of encumbered assets, or included the art as part of the tangible assets sold in an asset sale.
Usually there are escrow funds established by the seller for just such oversights/issues.
Either way, if you can find a decent corporate lawyer who will work on contingency, might be able to pull a nice settlement out as I doubt restaurant entrepreneurs have any interest in their escrow being burned, or the entire deal put at risk.

EDIT: Didn't realized it got resolved. Still should've told them to smell the glove All's well that ends well though

That's good news. I was also curious how this worked out. I'm glad you got your work back!

I'm glad it worked out in the end. Frustrating when it seems that someone's being unreasonable. Art (especially your own art) is such a personal thing. cool that the new owners could see that.

Congrats on getting your artwork back. Hopefully you can find a new place to display the pieces/ put them on sale, and have a good document signed by the venue so you have a record.