Callimanopulos v. Christie's Inc.
2009 U.S. Dist. LEXIS 47858, 69 U.C.C. Rep. Serv. 2d (West) 351, 621 F.Supp. 2d 127 (2009)
Premium Feature
Subscribe to Lexplug to listen to the Case Podcast.
Rule of Law:
Under N.Y. U.C.C. § 2-328, an auctioneer has the discretion to reopen bidding to accept a bid made while the hammer is falling, even if the hammer has already fallen and the auctioneer did not personally see the bid but was informed of it by assistants or spotters.
Facts:
- Gregory Callimanopulos participated by telephone in a Christie's art auction to bid on a painting titled 'Grey'.
- Eli Broad was also bidding on the painting, represented in person by Joanne Heyler, who was seated in the front row.
- Concerned that Heyler's front-row seat was a blind spot for the auctioneer, two Christie's employees were assigned to watch her for bids.
- Callimanopulos placed a bid for $3 million, which the auctioneer, Christopher Burge, appeared to accept.
- Burge announced, 'Sold to the phone for three million dollars' and brought the hammer down.
- As Burge was bringing the hammer down, Heyler raised her paddle to place a bid for $3.1 million.
- Burge did not personally see Heyler's bid, but his assistants saw it and immediately signaled to him.
- Seconds after the hammer fell, Burge relied on his assistants' information, reopened the bidding, and ultimately sold the painting to Heyler for $3.2 million.
Procedural Posture:
- Gregory Callimanopulos filed a lawsuit against Christie's Inc. in the U.S. District Court seeking a declaratory judgment and specific performance of an alleged contract.
- The court granted a temporary restraining order preventing Christie's from disposing of audio/video recordings and from completing the sale of the painting.
- The court granted a motion by the putative purchaser, Eli Broad, to intervene in the action.
- Callimanopulos then moved for a preliminary injunction to prevent the transfer of the painting's title pending the final resolution of the case.
Premium Content
Subscribe to Lexplug to view the complete brief
You're viewing a preview with Rule of Law, Facts, and Procedural Posture
Issue:
Does an auctioneer have the discretion under N.Y. U.C.C. § 2-328 to reopen bidding after the fall of the hammer to accept a bid made while the hammer was falling, when the auctioneer did not personally see the bid but was informed of it by assistants?
Opinions:
Majority - Pauley III, William H.
Yes. An auctioneer has the discretion to reopen bidding after the fall of the hammer for a bid made while the hammer was falling, even if the auctioneer relied on information from spotters rather than personal observation. The plain language of N.Y. U.C.C. § 2-328 explicitly grants an auctioneer discretion to either reopen bidding or declare the goods sold when a bid is made contemporaneously with the fall of the hammer. In this case, videotape evidence and affidavits from Christie's employees confirmed that Heyler's bid was made as the hammer was falling. Nothing in the U.C.C. or Christie's own Conditions of Sale requires the auctioneer to personally witness the competing bid, and relying on spotters is a common and accepted custom in the auction industry. Therefore, Burge acted within his discretion, and no binding contract was formed with Callimanopulos at $3 million.
Analysis:
This decision clarifies the scope of an auctioneer's discretion under U.C.C. § 2-328 in the context of modern, high-stakes auctions. It affirms that the 'fall of the hammer' is not an absolute finality if a competing bid is made in that moment. The ruling provides legal protection for the common auction house practice of using spotters, confirming that an auctioneer's discretion can be validly exercised based on information from their team. This precedent reinforces the auctioneer's authority to resolve disputes in real-time to ensure the integrity of the bidding process and achieve the highest price, even if it requires rescinding an initial declaration of sale.
