Auctions

Christie’s gets sued by Elizabeth Taylor’s trust

AuctionsAug 12, 2016

Christie’s gets sued by Elizabeth Taylor’s trust

The Sothern Trust has accused the auction house of cancelling sales from the record-setting sale of the late actress’s jewelry without good reason and not paying the trust for other items that were sold.


Elizabeth Taylor had a jewelry collection worth millions and even penned a book called “My Love Affair with Jewelry.” Christie’s was tapped to auction the jewels following her death in March 2011 at the age of 79. (Photo credit: Getty Image
Los Angeles--It looks like the 2011 record-setting sale of Elizabeth Taylor’s famed jewelry collection isn’t done making headlines quite yet.

Last week, The Sothern Trust, the trust for the late actress, filed a lawsuit in federal court in Los Angeles against New York-based Christie’s Inc., accusing the auction house of cancelling sales from the auction without good reason and not paying the trust for other items that were sold. 

At the heart of the lawsuit between the two parties is the sale of the “Taj Mahal Diamond,” the third highest-grossing lot of the auction, which remains the most valuable jewelry sale in auction history.

An anonymous buyer paid $8.8 million for the jewel, a heart-shaped diamond set in a jade pendant, later hung on a gold and ruby chain designed by Cartier. The diamond is inscribed with the name of a wife of a Mughal emperor.

According to the lawsuit, filed Feb. 24 in U.S. District Court for the Central District of California, Christie’s canceled the sale when the buyer balked because they claimed the diamond was not from the Mughal period.


Taylor’s trust, however, contends that the auction house wasn’t obligated to do so and, in fact, shouldn’t have because it had an obligation to the trust not to cancel any sales from the Taylor auction unless it “reasonably” believed it was going to get sued.

“Christie’s never warranted or guaranteed the age of the diamond … including its believed Mughal origins,” court papers state. “Christie’s warranted only that the diamond was an ‘Indian’ diamond, a statement that … the buyer did not dispute.”

While the auction house has in the past “consistently (and successfully)” stood by sales when the buyer’s claim fell outside the scope of its warranty, Christie’s did not do that in this case because it wanted to “appease the buyer” who is an “important customer” of the auction house, Taylor’s trust alleges in the lawsuit.

The trust admits that it has declined to give Christie’s back the $8.8 million from the now-canceled sale of the Taj Mahal Diamond, which it said it believes the auction house still has.

Christie’s, in turn,

has withheld $2.9 million for the sale of an emerald and diamond ring by Bulgari in an attempt to “strong-arm” the trust into returning the proceeds from the Taj Mahal sale, the lawsuit states.

The suit goes on to list five other items, including a necklace and ear clips by Ciner that Christie’s allegedly sold but hasn’t paid the trust for yet, along with the sale of a Bela Kadar painting that belonged to Taylor that was “cancelled without explanation” and returned to the trust, and proceeds from the sale of catalogs and signed copies of My Love Affair with Jewelry that were never remitted to the trust.

In a statement issued after the lawsuit was filed, the New York-based auction house did not directly address any of the trust’s claims but pointed out that it presided over an auction that raised more than $183.5 million for the beneficiaries of the trust, Taylor’s friends and family.
 
“This suit stems from Christie’s seeking the return of a small portion of proceeds due to the cancelled sale of a single item from the 1,800-lot collection. Christie’s looks forward to a speedy resolution of this matter,” a spokesperson for the auction house said.

The trust is asking the court to either find that it doesn’t have to return the Taj Mahal Diamond proceeds to Christie’s, or to order the auction house to return the diamond to the trust, and for damages in relation to the other items listed in the lawsuit.

Michelle Graffis the editor-in-chief at National Jeweler, directing the publication’s coverage both online and in print.

The Latest

Accredited Gemologists Association logo
SourcingMar 29, 2024
AGA Brings Back Scholarship, Research Grant

Scholarship applications are being accepted now, and the window for the grant will open in May.

Angelina Conti of Conti Jewelers
IndependentsMar 29, 2024
Angelina Conti of Conti Jewelers Dies at 98

She is remembered by loved ones as a “guiding force” behind the store and an active presence in her community.

Emerald Slinkee Drops earrings
EditorsMar 29, 2024
Piece of the Week: Boochier’s ‘Slinkee Drops’ Earrings

The emerald earrings reference objects from designer Melinda Zeman’s childhood.

Jewelers of America Fly In Washington, D.C.
Brought to you by
How Jewelers of America Represents Your Business

For over 30 years, JA has advocated for the industry, fought against harmful legislation and backed measures that help jewelry businesses.

Future Fortune sapphire ring
TechnologyMar 28, 2024
Pinterest’s 2024 Wedding Report Is Out

The report shows that couples are searching for vintage and antique rings, gold jewelry, pearls, and colorful pieces.

Weekly QuizMar 28, 2024
This Week’s Quiz
Test your jewelry news knowledge with this short test.
Take the Quiz
David Ettinger
IndependentsMar 28, 2024
David Ettinger of Bechdel Jewelers Dies at 69

He’s remembered as a “font of passion,” leaving behind a legacy of dedication to his craft and community.

Jewelers of America logo
IndependentsMar 28, 2024
JA to Host Series of Learning Workshops

The first one will take place next month during the Jewelers of Louisiana’s and Mississippi Jewelers Association’s conventions.

BTYB-HoBrothers-updated.png
Brought to you by
The Scalable, Professional, and Effortless Solution for High-Demand Custom Jewelry Retailers

Ho Brothers offers scalable solutions for the future of custom jewelry.

Jaeger-LeCoultre Madison Avenue NYC store
WatchesMar 28, 2024
Peek Inside Jaeger-LeCoultre’s Revamped NYC Flagship

The redesigned boutique features interactive displays and a workshop space for hands-on learning about watchmaking.

Asian Star’s diamond manufacturing facility in India
SourcingMar 27, 2024
Compliance, Caution, and Concern: The Current Outlook of Indian Diamantaires

There is a willingness to comply with new government-mandated regulations, with an insistence that they should be practical and realistic.

Kira Diam solar plant
Lab-GrownMar 27, 2024
Indian Lab-Grown Diamond Manufacturers Keep Growing

A combination of factors is driving growth in the industry despite the precipitous drop in prices across the board.

Bharat Ratnam, a Mega Common Facilitation Centre (CFC)
SourcingMar 27, 2024
Reinvigorating SEEPZ, the Epicenter of India’s Studded Jewelry Exports

The zone’s modernization will enhance and increase India’s jewelry manufacturing capabilities while aiding small and mid-sized businesses.

SRK Empire and SRK House
Policies & IssuesMar 27, 2024
SRK Exports’ Journey Toward Net Zero Impact

By the end of this year, SRK’s diamond manufacturing complexes will achieve net zero emissions, one of an impressive array of achievements.

Georgia May Jagger Tommy Hilfiger ad campaign
FinancialsMar 27, 2024
Movado’s Full-Year Sales Sink 11%

The company plans to invest $25 million in marketing initiatives to boost awareness around its namesake and licensed brands.

Hand holding shopping bags
SurveysMar 27, 2024
Consumer Confidence Held Steady in March

Optimism about the current state of the economy was offset by anxiety around inflation and the political environment.

Bernadette Mack
Policies & IssuesMar 27, 2024
Mercury Free Mining Hires Bernadette Mack

The former WJA executive director is MFM’s new managing director.

April Is Diamonds Do Good Month
Policies & IssuesMar 27, 2024
Diamonds Do Good Announces Its April Initiative

DDG encourages retailers to educate customers on the positive impact of purchasing natural diamonds.

Tiffany & Co. With Love, Since 1837
MajorsMar 26, 2024
Tiffany & Co. Debuts ‘With Love, Since 1837’ Campaign

Highlighting the most iconic Tiffany collections, it’s inspired by the company’s late window designer, Gene Moore.

National Jeweler columnists Duvall O’Steen and Jen Cullen Williams
ColumnistsMar 26, 2024
Creative Connecting: AI Tools and Tips for Social Media

Jen Cullen Williams and Duvall O’Steen explore how jewelers can save time and money by using AI to analyze engagement and create content.

Nordstrom Men’s Store New York City
MajorsMar 26, 2024
Nordstrom May Go Private, Says Report

The retailer previously turned down an $8.4 billion offer in 2018.

Interior of Miami Lakes Jewelers
IndependentsMar 26, 2024
Miami Lakes Jewelers to Close After 37 Years

The Florida store’s owner Miguel Gonzalez is retiring.

 International Gemological Institute
GradingMar 26, 2024
IGI Announces Tech for ID’ing Lab-Grown Colored Diamonds

The lab stresses the importance of accurate identification, as the difference in price is “substantial.”

Kendra Scott lab-grown diamond jewelry
CollectionsMar 25, 2024
Kendra Scott Debuts Lab-Grown Diamond Fashion Jewelry

The brand also plans to expand its retail footprint from 138 to 200 stores over the next three years.

Instappraise logo NAJA logo
Events & AwardsMar 25, 2024
NAJA, Instappraise Offering Scholarships for Aspiring Jewelry Appraisers

One is reserved for a NAJA member, the other for a non-member.

Carie Lehrke and Megan Mattice
MajorsMar 25, 2024
Borsheims Announces New VP of HR, Assistant Manager

Longtime employees Carie Lehrke and Megan Mattice have received promotions.

My Next Question graphic vintage jewelry webinar
Recorded WebinarsMar 22, 2024
Watch: How to Buy and Sell Vintage Jewelry

Three guests joined National Jeweler and Jewelers of America to discuss trending time periods, spotting reproductions, and more.

Chris Clipper and Robert Lepere
MajorsMar 22, 2024
David Yurman Announces New CFO, Chief People Officer

Chris Clipper and Robert Lepere join the company with 50 years of combined experience.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy