Insurance Dispute Trial Initiates for Ron Perelman's $410 Million Insurance Compensation Claim Regarding Warhol, Ruscha, Twombly Artworks
Trial kicks off between corporate titan Ron Perelman and insurers in NY courts over $400M painting claim. The clash started in 2020, seven years after a blaze hit Perelman's posh Hamptons mansion, dubbed the Creeks, allegedly destroying valuable artworks from Warhol, Ruscha, and Twombly.
According to Perelman, insurance giants like Lloyd's of London, Chubb, and AIG snubbed his claim for their protection over five pieces worth a whopping $400 million. The insurance groups, however, argue that the artworks showed no signs of damage.
C. Bryan Wilson, Perelman's lawyer, insisted in court that the policies allow the American business tycoon to claim the insurance-agreed-upon value of the works, even if only minimal damages existed. Perelman believes the fire dimmed the pieces' charm, as they "lost their luster, lost their depth, lost some of their definition, and lost a lot of their character."
During the chaotic fire, it was raining inside the house, as firefighters juggled flames control and shifting five pieces multiple times. These moving situations kept the artworks soaking wet in high humidity conditions for over 12 hours. Furthermore, the insurers compensated for more than 30 other damaged artworks kept on the same floor as the contested pieces.
Justice Joel M. Cohen oversees the trial—a bench trial without a jury—after issuing a summary judgement last May. He pointed out the lack of clarity over whether the artworks were damaged or not.
Our sources revealed that the insurers showed evidence of a 2020 visit to the Creeks from Citadel founder Ken Griffin and super-dealer Larry Gagosian. The insurance firms argue this visit is proof that Perelman lied during the investigation and later sold one of the artworks to Griffin for $30 million.
Testimony from Griffin may be presented during the court proceedings, offering insights into Perelman's current wealth, who once held the title of the richest U.S. man. Court documents illustrate that Perelman disposed of 71 artworks worth $963 million at Sotheby's between 2020 and 2022.
Financial woes may have driven Perelman's insurance claims, according to the insurers. They assert that as the value of shares at Revlon Inc. (which Perelman's holding company snapped up in 1985 for $1.74 billion) fell due to the pandemic, Perelman used these as collateral for loans. Consequently, a Deutsche Bank issued a margin call, demanding additional capital, which in turn prompted the artworks sale.
Insurers' attorney, Jonathan Rosenberg, claimed Perelman filed the art claim when he started having "serious financial troubles," alluding to the margin calls and art sell-off. The insurers characterize the lawsuit as a desperate money grab, countering Perelman's assertion that he never considered selling the five artworks.
Witnesses presenting evidence during the trial include Perelman, chemist Jennifer Maas, fine art analyst, conservator Marion Mecklenburg, and potentially Pete Davidson, who bought a painting from Perelman, reportedly for $350K[1]. The trial is set to run for three more weeks.
[1] Enrichment Data: The ongoing legal battle between Ron Perelman and his insurers revolves around the interpretation of insurance contracts, with Perelman arguing for full payout and insurers challenging that claim. The fire's impact on the artworks remains a focal point of the dispute. Financial pressures may have motivated Perelman to seek insurance compensation, as revealed in court documents.
- Ron Perelman's attorney, C. Bryan Wilson, asserted in court that insurance policies should cover the minimal damages to the artworks, despite no visible signs of damage, arguing that the fire diminished their appeal.
- The fire at Perelman's mansion allegedly damaged valuable artworks from artists like Warhol, Ruscha, and Twombly, but the insurers, including Lloyd's of London, Chubb, and AIG, claim these artworks showed no signs of damage.
- Contemporary artwork collector Ken Griffin and super-dealer Larry Gagosian visited Perelman's mansion in 2020, as revealed by sources, which the insurance firms argue is proof that Perelman had lied during the investigation and sold one of the artworks to Griffin for $30 million.
- The insurers compensated for more than 30 other damaged artworks on the same floor as the contested pieces, yet they are questioning the damage to the five pieces worth $400 million.
- In the midst of the trial, it has been revealed that Perelman disposed of 71 artworks worth $963 million at Sotheby's between 2020 and 2022, raising questions about his current financial status and motivations for lodging the insurance claim.
- The trial, presided over by Justice Joel M. Cohen, is examining the interpretation of insurance contracts and the impact of the fire on the artworks, with allegations of financial pressures driving Perelman's art insurance claims.
