David Nahmad may face a multimillion-dollar increase in liability after a New York judge ruled the heirs of a Nazi-looted Amedeo Modigliani are entitled to prejudgment interest.
In a decision issued Tuesday, Justice Joel M. Cohen held that New York law requires an award of prejudgment interest for the years the heirs were deprived of Seated Man with a Cane. The ruling does not revisit ownership, which Cohen resolved four months earlier in favor of the estate of Jewish dealer Oscar Stettiner, who abandoned the work while fleeing Paris ahead of the Nazi occupation.
Cohen stressed he is constrained by governing law, noting there is no evidence that Nahmad knew the painting had been looted when it was purchased at auction in 1996. The judge added he "might well" reduce the interest award or eliminate it, if the statute or precedent allowed, but found he had no discretion to do so.
The practical effect will hinge on the painting's valuation. The heirs submitted appraisals putting Seated Man with a Cane at roughly $20 million when the lawsuit was filed in 2014. The Nahmads counter with a valuation of $6.5 million. The court set an evidentiary hearing for September to resolve the disparity and calculate the final interest award, which could add millions to the sum the family must hand over.
Nahmad's legal team has already signaled an appeal. Attorney Luke Nikas told ARTnews, "This case raises serious appellate issues." He argued the court granted liability without a trial despite defense documentary evidence and sworn eyewitness testimony contending the painting now at issue is not the same work once owned by Stettiner. "The Nahmads acted in good faith, and they are entitled to their day in court," Nikas added.
With ownership settled, the dispute now centers on monetary consequences after years of litigation. The September hearing will determine the painting's value for the relevant period, and the verdict there will shape both the size of the prejudgment interest award and the next stage of an expected appeal.
