Zaretsky v. William Goldberg Diamond Corp.
Court of Appeals for the Second Circuit
1Opinion of the Court
SACK, Circuit Judge:
In 2003, the appellant William Goldberg Diamond Corporation (“WGDC”) consigned a large pear-shaped diamond to Derek Khan, a celebrity fashion stylist. Khan, without WGDC’s permission, subsequently sold the diamond to a third party. Through a series of transfers, the diamond ultimately came into the possession of the appellees Steven Zaretsky and Suzanne Zaretsky (the “Zaretskys”). Following Steven Zaretsky’s attempt to insure the diamond, its questionable provenance became apparent, and the instant litigation to clarify title ensued.
Section 2-403(2) of the New York Uniform…
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