Collector Sasan Ghandehari has filed a lawsuit against Christie’s in the High Court of England & Wales, alleging the auction house failed to disclose that a Picasso painting he guaranteed was owned by a man convicted of drug-related charges. The work, Picasso’s *Femme dans un rocking-chair* (1956), was offered in a February 2023 London evening sale with a third-party guarantee from Ghandehari’s company, Brewer Management Corporation (BMC). Ghandehari claims Christie’s told him the owner was José Mestre Jr., but the painting actually belonged to his father, José Mestre Sr., who was sentenced to nine years in prison after 202 kilos of cocaine were found on a cargo ship in 2010. The lawsuit seeks to cancel the guarantee contract and recover a £4.8 million partial payment.
The case highlights the risks and opacity surrounding third-party guarantees, which have become common in high-profile auctions to transfer financial risk from auction houses to outside guarantors. It also raises questions about due diligence and provenance disclosure, especially when works may be linked to criminal activity. If successful, the lawsuit could pressure auction houses to more rigorously vet ownership histories and disclose potential legal or ethical red flags to guarantors and buyers. Christie’s has stated it will “robustly defend” the claim and that it complied with all legal and regulatory obligations.