Rogath v. Siebenmann

• "Siebenmann" = art dealer = owner of a self-portrait supposedly by Francis Bacon (artist 1909 - 1992) = defendant
• Sibenmann doubted the authenticity of the painting & critics of the painting existed
• Rogath = purchaser of the Francis Bacon painting from Siebenmann for $570,000 in the 1990s = plaintiff
• The bill of sale stated that Siebenmann had no knowledge of any challenges to the title & authenticity of the painting
• Rogath turned around & re-sold the painting to an art museum for $950,000
• The art museum learned about the doubts surrounding the painting; thus, Rogath reluctantly issued a refund to the museum

• Rogath sued Siebenmann for breach of warranty.
• Rogath won a summary judgment.

Can a buyer (Rogath) who signs a contract knowing of facts that could constitute a breach of warranty under the contract sue for breach of warranty?

• Siebenmann argued that he had told Rogath about the doubts surrounding the painting.
• Rogath denied that Siebenmann shared his doubts about the painting.

No. If the seller discloses facts that constitute a breach of warranty under the contract and the buyer proceeds anyway, the buyer has waived the right to a breach-of-warranty claim.

the summary judgment is vacated. Case is remanded.

Judge McLaughlin: If the buyer didn't believe the seller's promise, the buyer has waived the right to bring a breach-of-warranty claim later after purchasing based on a contract that validates the seller's promise.