Justice rules in favor of Sotheby's in the dispute with a Russian oligarch over the sale of Da Vinci's 'Salvator Mundi'

A federal jury in Manhattan has ruled in favor of Sotheby's in a high-profile civil trial in which Russian oligarch Dmitry Rybolovlev accused the prestigious auction firm of defrauding him of tens of millions of dollars in art sales.

The piece that has been the protagonist of the litigation, one of the most talked about in the sector market, is the

Salvator Mundi

by Leonardo da Vinci, a painting that has been missing for years since it was auctioned in 2017 for a record amount.

Rybolovlev had accused Sotheby's of colluding with Swiss art dealer Yves Bouvier to trick him into paying inflated prices for four works, including the depiction of Christ attributed to the Renaissance master.

Sotheby's has maintained that it had no knowledge that Bouvier may have lied and that it was not responsible for his dealings with Rybolovlev.

The Swiss dealer, who was not accused in the case, also maintains that he did nothing wrong.

Rybolovlev, 57, is the owner of a fortune of $6.4 billion thanks to his fertilizer empire, according to

Forbes

magazine .

He is also the majority owner of the AS Monaco soccer team, although according to recent information his sale is being considered.

For Sotheby's, the verdict reaffirms its commitment to maintaining the highest levels of integrity, ethics and professionalism in its transactions, in addition to reflecting a "flagrant lack of evidence" of the alleged deception denounced by Rybolovlev, epigone of the generation of oligarchs that emerged from the decomposition of the USSR in the last decade of the last century.

As in civil cases, the plaintiff had to provide “clear and convincing evidence” that the auction house was aware of Bouvier's alleged manipulative tactics, which often consisted of emails detailing fierce negotiations with apparently non-existent buyers for increase the price.

Despite the favorable outcome for Sotheby's, much of its inner workings and practices were exposed during the trial, which has offered a rare glimpse into the secretive world of auction houses' private sales.

In recent years, these sales make up a large portion of Sotheby's and its competitors' commissions.

Rybolovlev in May 2013, in Monaco.Lionel Cironneau (AP)

The lead lawyer for Rybolovlev's company listed as the plaintiff, Accent Delight International, said that even after losing the case, it had “achieved our goal of shedding light on the lack of transparency plaguing the art market.”

This secrecy, the lawyer stressed in a statement, made it difficult to prove a complex case of complicity in fraud.

“This verdict only highlights the need for reforms, which must be done outside of the courts,” he added.

The degree of secrecy, even obscurantism, prevailing in the market, can explain what became of the Italian master's painting during the years in which track of it was lost, with numerous competing versions about its whereabouts in a private collection in Saudi Arabia. or Abu Dhabi.

In a trial that lasted three weeks, the ten members of the Manhattan federal court jury needed just five hours to reach the verdict.

Rybolovlev has accused Bouvier of fraud in multiple jurisdictions around the world, with little success.

His claims against the dealer in Singapore were dismissed after the court found Switzerland to be a more appropriate jurisdiction for their dispute.

Last March, New York Southern District Judge Jesse Furman allowed Rybolovlev to file fraud lawsuits in connection with the Da Vinci and works by Gustav Klimt, René Magritte and Amedeo Modigliani.

Rybolovlev sued over 15 works of art for which he paid more than $1 billion, accusing Bouvier of charging hundreds of millions of dollars in hidden markups.

In total, Rybolovlev purchased 38 works throughout his relationship with Bouvier, although only 12 arrived at Sotheby's and Judge Furman only admitted four at trial:

Domaine d'Arnheim

by René Magritte,

Water Serpents II

by Gustav Klimt, a sculpture by Modigliani,

Tête

, and the aforementioned

Salvator Mundi

by Leonardo da Vinci, the crown jewel of the lot.

In each of these works, as in all transactions in which Bouvier sold art to Rybolovlev, the Swiss dealer purchased the work through a holding company before reselling it to Rybolovlev at a steep markup.

According to the oligarch, Bouvier worked for him as an artistic advisor, a claim that Bouvier flatly denies, although it is true that in all transactions he took a commission on the sale, in addition to the markup.

Furman dismissed fraud claims over 11 other works, some by Pablo Picasso, Auguste Rodin and Toulouse-Lautrec, but allowed him to pursue the

Salvator Mundi

lawsuit even though his ownership had proven unusually profitable.

According to court documents, Bouvier bought the Da Vinci for $83 million in 2013 and sold it the next day to Rybolovlev for $127.5 million.

Subsequently, the oligarch sold the

Salvator Mundi

at Christie's in 2017 for $450.3 million, a record price for a work of art at auction.