Sam Francis Foundation v. Christies, Inc.

In 1976, California passed the California Resale Royalty Act (the Act) — a law that, for the last 39 years, has secured invaluable benefits for talented artists. The Act requires that when a fine art sale takes place in California or the seller of the art (sometimes referred to in this opinion as the owner) resides in California, the seller or the seller’s agent must pay a five-percent royalty to the artist. Cal. Civ.Code § 986(a).1 Under the Act, when a wealthy *1327collector of modern art purchases for several million dollars a work of art that the prior owner bought for a minimal amount from a…