Christie’s Fine Art Storage Services will have to refund an insurance company for more than $700,000 it doled out to a gallery client after an entire art collection stored at their facility was decimated by Hurricane Sandy, an appeals court decided Thursday.
Madison Avenue Gallery Chowaiki & Co lost an estimated $704,478 worth of art they’d stored at the famous auction-house subsidiary, after first floor flooding at the facility during the superstorm ruined the pricey collection.
Christie’s Fine Art Storage Services had alerted patrons they’d be taking extra precautions at their Red Hook facility during the 2012 storm–either by lifting the pieces off the ground or moving them to the upper floors.
But the assurances were empty, and the works were destroyed.
While Chowaiki’s insurance company did cover the cost of the lost art, they turned around and sued the storage facility for the loss, citing negligence, breach of contract, and fraudulent misrepresentation.
The facility argued they weren’t liable for “acts of God” like Sandy, and a New York State Court dismissed the suit.
But the Appellate Division First Department disagreed, deciding Thursday that the facility was liable under the terms of their contractual agreement.
“I am pleased with the decision,” said attorney Eliot Greenberg, who represents the gallery and their insurance company, XL Specialty Insurance.
Christie’s Fine Art Storage Services did not return messages.