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Park West Gallery motion to transfer Class Action Lawsuits to Michigan

Oh What Tangled Webs They Weave!


Park West Gallery is at it again. It seems that they have a problem with communicating the truth, even when it comes to addressing the respected courts of this country.

On May 12, 2009, lawyers for Park West Gallery filed a motion and a legal brief requesting transfer of all of the pending Class Action Lawsuits to the Eastern District of Michigan. Park West and its affiliates (including many of the cruise lines they serve) have recently been sued in class action lawsuits in the States of Florida, Washington, and Michigan, for a number of consumer violations, including:

  • Violations of the Racketeer Influenced and Corrupt Organizations Act (also known as RICO or RICO Act)
  • Violations of State Consumer Protection Statutes
  • Breach of Contract
  • Breach of Warranty and
  • Unjust Enrichment

Park West Gallery filed this recent motion PDF to transfer all of the actions to the Eastern District of Michigan because they state that, "the active prosecution on opposite sides of the country raises the very real risk of duplicative efforts, conflicting rulings, and gross inefficiencies for the parties and the courts." Really? The shoe is on the other foot, is it? Park West Gallery has made a whole industry out of litigating opponents to death all over the country in as many jurisdictions as possible. In fact, Fine Art Registry® is a prime example of how Park West Gallery uses the court system to bludgeon its opponents - those who dare speak the truth about their business practices. In fact, Park West Gallery has filed duplicative SLAPP lawsuits against Fine Art Registry, its CEO Theresa Franks, and its writer, David Phillips in every jurisdiction it can get away with - gross inefficiencies, duplicate efforts and judicial economy be damned.

There is no doubt that Park West Gallery is bothered over Judge Lasnik's recent ruling PDF, wherein he declined a previous request by Park West to transfer the Washington State Class Action to Florida where Park West Gallery is used to litigating and battering its opponents and where favorable conditions exist for them.

So let's take a look at some of the inconsistencies, significant omissions and untruths set forth in the recent filing by Park West Gallery. The complete Motion and Brief is referenced in its entirety so our members and interested parties can read it for themselves.

Park West Gallery Motion & Brief
Park West Gallery Motion and Brief

In the Park West Gallery legal brief, under the heading "FACTUAL BACKGROUND", and specifically in subsection B, paragraph 12, Park West gives notice to the court about the case concerning FAR® members Sharon Day and Julian Howard and other plaintiffs, including those who have case studies published on the FAR web site, known as the Best case. Specifically, the Park West Gallery legal brief states, in part:

"A related state court action (styled Best, et al. v. Park West Galleries, Inc., et al., Case No. 08-096952-CZ) was filed on December 23, 2008 against Park West, Albert Scaglione, Royal Caribbean and another Park West employee Morris Shapiro in Southfield, Michigan. Like the federal cases, the Michigan state court case alleges that Park West has sold artwork, including artwork by Salvador Dali, that is inauthentic."

Now note the clever little footnote referenced by Park West Gallery (emphasis added by FAR) which states:

"Additionally, Park west has filed a defamation action in Michigan, which has since been removed to the Eastern District of Michigan, alleging that the defendants "falsely accuse[ed] Park West of ... defrauding its customers by selling fake art by artists including Salvador Dali. Park West Galleries, Inc. v. Phillips, E.D. Mich. Case No. 2:08-CV-12274-LPZ-VMM. Transfer for the consolidation in the Eastern District of Michigan could allow for coordination with the Phillips defamation action."

The quote above is misleading and gives the false impression that this is the only case Park West Gallery has pending against David Phillips and FAR. In fact, Fine Art Registry was the first to be sued by Park West Gallery in the Phillips case quoted above. "A defamation action"? How about the truth, Park West? Come on now! How about FOUR duplicate SLAPP lawsuits all directed at Fine Art Registry and freelance writer David Phillips? And let's not forget the SLAPP lawsuits that Park West Gallery has filed against the majority of the plaintiffs - yes, against its OWN CUSTOMERS.

Park West Gallery also completely omits the fact that it has yet another lawsuit actively pending against David Phillips in state court in Florida - yes, ANOTHER duplicate to the SLAPP suits now pending in Michigan. Park West also tried but failed to maintain lawsuits against Fine Art Registry and its CEO (the cases were dismissed because of Park West Gallery's underhanded tactics - but that's another story for another day) in the State of Florida - again all duplicate actions - right down to the typos in the lawsuits that were filed. This is a significant fact that FAR believes was purposely omitted from the Park West Gallery legal brief.

Why is it that Park West Gallery did not make mention of the state case pending against David Phillips in Florida (see Florida State Case No. 08-20361 CA 25), especially in light of the fact that Park West Gallery emphasizes in its legal brief on several occasions that its [Park West's] "business activities and operations are all coordinated and controlled from its offices and facilities in Southfield [Michigan]?" And how is it that Park West Gallery and its counsel can genuinely maintain a state action in Florida against David Phillips and at the same time request in good faith that the class action cases be consolidated in Michigan for the sake of, as Park West Gallery pleads, "the very real risk of duplicative efforts, conflicting rulings, and gross inefficiencies for the parties and the courts"? Is this a joke?

Further, how can Park West Gallery continue to maintain a state court action in Florida against David Phillips when Park West Gallery asserts it is not doing business in the state of Florida? What is going on here? It certainly seems that once again Park West Gallery is trying to pull the wool over the court's eyes - smoke and mirrors.

In its legal brief, Park West Gallery also makes it seem (and nothing with Park West is as it seems) as if the Michigan state case, Best, et. al v. Park West Galleries, Inc. et. al. is entirely "related" to the class actions. While there are similarities, there is one extremely significant exception which Park West Gallery excludes and which FAR believes the court should and must be made aware. A big glaring omission: Sharon Day and Julian Howard, plaintiffs in the Best case, did NOT buy their $500,000 in Park West Dali artwork on a cruise ship. In fact, Sharon Day and Julian Howard were comfortably at home in the UK on good old terra firma when the Park West Dali purchase was solicited by Morris Shapiro (the gallery director who phoned Julian Howard from the Park West Southfield, Michigan gallery). It was Morris Shapiro who arranged for an auctioneer, who was at the time allegedly sailing aboard The Legend of the Seas, a Royal Caribbean ship, to manufacture an invoice, as if Julian Howard was present onboard ship which he was not, and as if he had attended a Park West art auction which he clearly did not and adding insult to injury by adding a buyer's premium to the invoice. In fact, Julian Howard never in his life sailed aboard the ship The Legend of the Seas from where the invoice was manufactured and generated, much less attended the auction referenced on the invoice, nor did he place a bid that would lead to a "hammer price" which would invoke a buyer's premium to be added.

Finally, Park West Gallery makes the statement in its legal brief that "the transactions involved...all occurred in international waters." As to Sharon Day and Julian Howard, this could not be further from the truth. In fact, what should be brought to the court's attention is that Park West Gallery through an auctioneer onboard a Royal Caribbean ship, manufactured an invoice while at sea which was forwarded via email by Morris Shapiro to Julian Howard and that Julian Howard wired nearly a half million dollars from terra firma in the UK to a Royal Caribbean bank account in Texas - not even close to "international waters." This is what Park West Gallery should have declared to the court in its legal brief or then again, maybe Park West Gallery just assumes that the court won't ferret out the truth. Maybe Park West Gallery believes no one is paying attention - that by omission and behind the cloak of the legal system they can get away with it. Think again!

It is also important to point out that at least one other plaintiff involved in the Best case purchased artwork directly from the Southfield, Michigan gallery, NOT onboard a cruise ship and therefore not in international waters as Park West Gallery would lead the court to believe.

We hope the truth will ultimately prevail.


"Oh what a tangled web we weave, when first we practice to deceive!"
- Sir Walter Scott in "Marmion, Canto VI, Stanza 17"


By Fine Art Registry®   |   May 27, 2009  |   Discuss Story on FAR® Forum   |   Print   |  

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