SOTHEBY’S SUES TWO CHINESE BUYERS FOR NONPAYMENT

Sotheby’s is suing two Chinese for payment on $270,300 worth of antiques they won at its Hong Kong sale in October “to send a message it won’t stand for defaults,” said Asia chief executive Kevin Ching.

The winning bidder on a Qing-dynasty cloisonne censer and cover failed to pay “despite repeated requests and demands,” Sotheby’s said in a copy of its January 30 filing to the city’s High Court that the company provided to Bloomberg. The US-based auction house is also pursuing another buyer who won five antique paintings and wouldn’t pay, according to Bloomberg.

“We can’t have people bid at our auctions and disappear without paying,” Ching said in a telephone interview. If the buyers don’t respond to the city’s ruling, Sotheby’s may apply for the judgment to apply on the mainland, in case “they think the long arm of Hong Kong law couldn’t reach them,” he said.

Hong Kong is the world’s third-largest art market after New York and London and a conduit for the mainland’s antiques trade. China-related art-auction defaults hit the headlines last year after southern Chinese dealer Cai Mingchao’s successful forty-million-dollar bid on two Qing-dynasty bronzes at the February 25 Yves Saint Laurent sale hosted by Christie’s International in Paris. Cai then refused to pay, citing the items’ controversial background as looted items.

Christie’s Asia president Francois Curiel this week declined to say whether Cai has paid for the bronzes, citing client confidentiality. Cai said he hasn’t paid for the items and that Christie’s hasn’t contacted him since last year’s furor.