Fine Art Registry® Sues Park West Galleries, Inc. for Defamation, Tortious Interference, Trademark Violation and Conspiracy

A counterclaim against Park West Galleries, Inc. was filed on 4 May 2009 in the United States District Court for the Eastern District of Michigan, Southern Division, by Attorneys Kaufman, Payton & Chapa on behalf of Fine Art Registry® and David Phillips.

The case, No. 2:08-CV-12247, is before Judge Lawrence P. Zatkoff in federal court. Park West Galleries, Inc. filed suits in Michigan and Florida against Fine Art Registry and one of its writers, in early 2008, claiming that factual information and case studies published by Fine Art Registry had defamed Park West and that the advocacy that Fine Art Registry provides to victims of Park West art auctions which resulted in millions of dollars of refunds to these victims, constituted interference with their business.

Subsequently, Park West hired PR companies to spread the most outrageous lies about Fine Art Registry and its writer, in a vain attempt to discredit them and silence them. They also hired agents to violate Fine Art Registry registered and common law trademarks, putting up spurious websites and blogs and publishing a host of blatant, harmful lies in an attempt to destroy Fine Art Registry and divert its business.

The lies and defamation recoiled on Park West and their agents and they lost an arbitration by the World Intellectual Property Organization (WIPO) Arbitration and Mediation Center and were forced to take down websites designed to harm the reputation and business of Fine Art Registry and David Phillips. Google and AOL removed paid ads placed by Park West Gallery and its PR Firm Fleishman-Hillard when Park West's trademark violations were pointed out. Nevertheless, Park West customer services and executives carried on a campaign of spreading harmful lies to Fine Art Registry members by phone and email, and Albert Scaglione himself, Park West's owner, is reported to have told numerous trainee auctioneers and associates that God had told him that what he was doing was right and would wreak vengeance on Fine Art Registry.

Finally Fine Art Registry had had enough, and this counterclaim against Park West Gallery has been filed with very detailed allegations, charging Park West with

COUNT I - DEFAMATION BY PARK WEST AGAINST FAR AND DAVID PHILLIPS
COUNT II - TORTIOUS INTERFERENCE BY PARK WEST AGAINST FAR
COUNT III - PARK WEST'S INTERFERENCE WITH FAR'S PROSPECTIVE BUSINESS ADVANTAGE
COUNT IV - PARK WEST'S VIOLATION OF THE LANHAM ACT AS TO FINE ART REGISTRY [trademark violation]
COUNT V - CONSPIRACY AGAINST FAR AND PHILLIPS

The numerous exhibits accompanying the counterclaim show quite clearly the defamatory campaign continued by Park West.

The counterclaim demands a judgment against Park West for actual and punitive damages and all other relief allowable under Michigan and federal court rules.

Lawrence C. Atorthy, Attorney for Counter-Plaintiffs FAR® and Phillips, stated, "We no longer can stand aside and allow Park West's relentless and reckless attacks to tarnish the Fine Art Registry and David Phillips' good names. Through this Counterclaim, Fine Art Registry (FAR) and David Phillips identify the numerous instances when Park West and its agents actively sought to defame FAR and Phillips and unjustifiably attack their business, reputation and integrity. We hope that this Counterclaim will give Park West pause before it continues on its path to demonize FAR, an organization dedicated to the preservation of accuracy and honesty in the art world, and David Phillips, a well respected and knowledgeable member of the artistic community."

Founded in 1975, Kaufman, Payton & Chapa, now has offices in Farmington Hills, Detroit and Grand Rapids and represents clients throughout the state of Michigan. Known for the aggressiveness and tenacity of it attorneys and its results-oriented approach to cases, the firm represents clients in trial and appellate matters large and small.

Teri Franks, CEO of Fine Art Registry, said, "Since we began to report the cases of Park West victims on our website and help those who had been taken advantage of at cruise ship art auctions, we have been relentlessly attacked by Park West, in the courts, on the internet, through paid blogs, PR agencies and so on, even going so far as to deliberately violate our federally registered trademarks. It's understandable - they want us to shut up and go away. They are used to bullying or buying off their critics into submission and silence. But someone has to stand up for what is right and decent, to protect the rights of consumers and employees alike."

David Phillips who writes for Fine Art Registry added: "Park West made the mistake of publishing and voicing numerous lies in their attempt to silence and destroy their critics. Using lies in propaganda campaigns inevitably recoils on the liar. In the videos, articles and other information published by Fine Art Registry regarding Park West we have never knowingly published one single fact, no matter how small, which we did not honestly believe to be true and have evidence to support. We continue to receive complaints almost daily from Park West customers and ex-employees who are seeking redress of wrongs they have experienced at the hands of the gallery."

The evidence continues to pile up and will be presented to the court to decide on.

Art Advocacy Articles ›