Mogul Sam Zell claims $5.8 million art loss

9 June 2011

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Balthus' "The Cat With Mirror III," which was appraised at $5 million.

Chicago real estate tycoon Sam Zell says a Los Angeles art dealer with whom he consigned three artworks, sold the pieces and then spent the money without paying him a dime.

Samuel and Helen Zell received an insurance settlement of $5,775,000 for the loss. In turn, Chubb Indemnity Insurance has sued the art dealer David Tunkl and his art gallery Worldwide Masterpiece to recoup the $5.7 million plus costs, for conversion and breach of contract.

The works were Balthus' "The Cat With Mirror III," which was appraised at $5 million; Fernand Leger's "Study for the Tugboat," which the Zell Trust had bought for $375,000; and Leger's "Mona Lisa with Keys (First State)," which the Trust bought for $900,000.

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