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Art Law Keyed to Gerstenblith, 4th Ed.
Bakalar v. Vavra
Citation:
619 F.3d 136 (2010)Facts
Franz Friedrich Grunbaum was an Austrian Jewish cabaret artist who owned a collection of 449 artworks, including 81 works by Egon Schiele, kept in his Vienna apartment. After being arrested by the Nazis and imprisoned at Dachau in 1938, Grunbaum was forced to sign a power of attorney authorizing his wife Elisabeth to file required asset statements and represent him in all affairs. The Nazis used this to compel disposition of Grunbaum’s assets through confiscatory taxes and penalties. Franz Kieslinger, a Nazi appraiser, inventoried the collection four days after the power of attorney was executed. Grunbaum died in Dachau in 1941, and his wife died in a concentration camp in 1942. The Drawing was sold by Mathilde Lukacs-Herzl (Elisabeth’s sister) to Galerie Gutekunst in Switzerland in 1956, then to Galerie St. Etienne in New York the same year, and finally to Bakalar in 1963 for $4,300. When Bakalar attempted to auction the Drawing at Sotheby’s for approximately $675,000, the sale was challenged by Grunbaum’s heirs.
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