Menzel v. List

246 N.E.2d 742 (1969)

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Nature of the Case

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Facts

In 1932, P and her husband purchased a painting by Marc Chagall for 3,800 Belgian francs (then equivalent to about $ 150). The Germans invaded, and P fled and left their possessions, including the Chagall painting, in their apartment. They returned six years later and found that the painting had been removed by the German authorities and that a receipt for the painting had been left. The location of the painting between 1941 and 1955 is unknown. In 1955, Klaus Perls and his wife purchased the Chagall from a Parisian art gallery for $2,800. They knew nothing of its previous history and made no inquiry but relied on the reputability of the Paris gallery as to authenticity and title. In October 1955, the Perls sold the painting to D for $4,000. In 1962, P discovered it was in D's possession. D refused to surrender it to P. P sued D for replevin. D impleaded the Perls, in that they were liable to him for breach of an implied warranty of title. P got the verdict and D could either return the painting or pay $22,500 and keep it. The jury found for D as against the Perls, on his third-party complaint, in the amount of $22,500, the painting's present value, plus the costs of the P action incurred by D. The Perls appealed, and the judgment was reduced to $4,000. The court held that the 'applicable measure of damages was the price D paid for the painting at the time of purchase, together with interest.' D appealed.