KAMIDIAN V HOLT

[2008] EWHC 1483 (Comm), Queen’s Bench Division, Commercial Court, Mr Justice Tomlinson, 27 June 2008

Insurance (fine art) – Claimant insuring for US$2.5 million an Egg Clock described as by Fabergé – Egg Clock damaged in course of transit for exhibition – Whether assured had title to Egg Clock – Misrepresentation – Nature of implied representation made by assured about authenticity of Egg Clock – Bailment – Liability of exhibitors for damage

The claimant asserted that he had purchased a 50% interest in the Dr Metzger Egg Clock, an alleged creation of Carl Fabergé, from Sothebys at auction in November 1991: the piece was not described by Sothebys as by Fabergé, but the claimant asserted that he had recognised it as a Fabergé piece. He paid SF148,500. He also asserted that he had obtained 100% interest in 1997. In 2000 the claimant loaned the Egg Clock to B, under a Loan Agreement, for display in an exhibition in the US. On arrival it was found that a bud on one of the floral branches at the top of the clock had broken off in the course of transit. The Egg Clock had been insured as a Fabergé item under a valued policy in the sum of US2.5 million. A claim was notified to the insurers. The Egg Clock was then returned to England, but was found to have suffered further damage on the return journey. The claimant sought to recover repair and depreciation costs from B, from the co-curators of the exhibition and also from the insurers under the policy. Tomlinson J held as follows.