Consequences of Non-Payment at the Fall of the Hammer: A Closer Look at Christie's Lawsuit

Being an Auctioneer isn’t Easy – The Consequences of Non-Payment at the Fall of the Hammer

In the world of auctions, the fall of the hammer signifies the end of bidding and the sale of an item. However, what happens when the winning bidder refuses to pay?

This is the predicament that Christie’s, one of the world’s leading auction houses, finds itself in.

Christie’s has recently filed a lawsuit against Italian real estate investor Nanni Bassani Antivari in Paris. The auction house alleges that Antivari is refusing to pay for a work he purchased at Christie’s France in June. The artwork in question is Jean Siméon Chardin’s 1760 masterpiece, Cut Melon, which Antivari won with a bid of $28 million.

Property for sale by Auction A still life painting featuring a wedge of orange melon resting on a half melon, surrounded by a cluster of ripe peaches with green leaves. A decorative ceramic jug with a floral pattern is visible in the background. Presented by World of Auctions

The estimated price for the painting was between $8.4 million and $12.6 million. Christie’s is demanding the full price plus interest and penalty fees, totalling $28.7 million.

The sale of Cut Melon set several records, including a world record for a Chardin, the most expensive 18th-century work of art ever sold in France, and the most expensive Old Master painting ever sold in France. These records, however, have been overshadowed by the ensuing legal battle.

Antivari, a real estate investor based in Saint Moritz, Switzerland, is not known within the Old Masters market. He reportedly owes millions to his former business partner, Andrea Pignataro, founder and CEO of London-based financial tech firm ION Group. This raises questions about the vetting process for potential bidders and the challenges auction houses face in ensuring that winning bidders have the financial capacity to fulfil their obligations.

According to the legal filings, Christie’s has been trying to convince Antivari to pay for the last six months. The invoice was due to be cleared one week after the auction, and Antivari had promised several times to push through the transfer. Antivari’s lawyer has declined to comment on the case.

This case highlights the challenges that auction houses face in ensuring payment after the fall of the hammer. It serves as a reminder that being an auctioneer isn’t easy, and the consequences of non-payment can be severe and costly.