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Contracts Keyed to Dawson
Hoffman v. L&M Arts
Citation:
838 F.3d 568.Facts
Hoffman purchased a painting, “the Red Rothko” in 1998, and later bequeathed the painting to the Dallas Museum of Art. In 2006, Hoffman decided to privately sell the Red Rothko following the death of her husband. L&M Arts assisted Hoffman with the sale. Hoffman conveyed her concerns regarding confidentiality to L&M, and L&M agreed to approach a single-buyer (Martinez). In February 2007, the parties reached an agreement to sell the painting for $17.6 million. The agreement also contained a confidentiality provision. However, in March 2007 Hoffman was contacted by Christie’s auction house regarding her sale of the painting. Hoffman canceled the sale due to the breach of confidentiality.
In April 2007, the parties reached a new agreement to sell the painting for $17.6 million with a number of additional commitments. The agreement also contained a modified confidentiality provision which stated: “All parties agree to make maximum efforts to keep all aspects of this transaction confidential indefinitely.” Following closing, Martinez attempted to privately resell the painting, but ultimately put it for sale in public auction in 2010. The painting was featured on the cover of the auction house’s catalog and the catalog referenced a Dallas Museum of Art exhibit that had been dedicated to Hoffman. Hoffman attempted to buy back the painting but was rejected.
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