Phillips auction house has filed a lawsuit against film producer David Mimran, alleging he failed to pay $14.5 million for a Jackson Pollock painting after serving as a third-party guarantor. The untitled ca. 1948 white-on-black drip painting, which had appeared in a 1998 retrospective at the Museum of Modern Art, received no bids at a November auction in New York, leaving Mimran legally obligated to purchase it. Mimran missed two payment deadlines and later claimed he could not meet a third, prompting Phillips to file a complaint with the Supreme Court of New York.
This case highlights the risks and legal complexities of third-party guarantees in the high-stakes art auction market, where guarantors promise to buy works at a set price if they fail to sell. The dispute underscores tensions between wealthy collectors and auction houses, especially when guarantors face liquidity issues. The outcome could set a precedent for how auction houses enforce guarantee agreements and how collectors navigate financial commitments in a volatile market.