Rogath v. Siebenmann
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Rogath v. Siebenmann | |
Court | 2nd Circuit |
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Citation | 129 F.3d 261 |
Date decided | August 28, 1997 |
Facts
- "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
Procedural History
- Rogath sued Siebenmann for breach of warranty.
- Rogath won a summary judgment.
Issues
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?
Arguments
- Siebenmann argued that he had told Rogath about the doubts surrounding the painting.
- Rogath denied that Siebenmann shared his doubts about the painting.
Holding
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.
Judgment
the summary judgment is vacated. Case is remanded.
Reasons
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.
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