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Autocephalous Greek-Orthodox Church of Cyprus V DePaul Journal of Art, Technology & Intellectual Property Law Volume 1 Issue 1 Spring 1991 Article 6 Autocephalous Greek-Orthodox Church of Cyprus v. Goldberg & Feldman Fine Arts, Inc., 917 F.2d 278 (7th Cir. 1990) Juliana Stratton Follow this and additional works at: https://via.library.depaul.edu/jatip Recommended Citation Juliana Stratton, Autocephalous Greek-Orthodox Church of Cyprus v. Goldberg & Feldman Fine Arts, Inc., 917 F.2d 278 (7th Cir. 1990), 1 DePaul J. Art, Tech. & Intell. Prop. L. 22 (1991) Available at: https://via.library.depaul.edu/jatip/vol1/iss1/6 This Case Summaries is brought to you for free and open access by the College of Law at Via Sapientiae. It has been accepted for inclusion in DePaul Journal of Art, Technology & Intellectual Property Law by an authorized editor of Via Sapientiae. For more information, please contact [email protected]. Stratton: Autocephalous Greek-Orthodox Church of Cyprus v. Goldberg & Feldm CASE SUMMARIES On July 3, 1988, Goldberg negotiated an agreement Autocephalous with the two art dealers and their attorney to Greek-Orthodox Church of purchase the mosaics for $1,080,000 and to split Cyprus v. Goldberg & any future resale profits with the other three par- ties. Goldberg testified that she made several in- Feldman Fine Arts, Inc., quiries into whether the mosaics were reported 917 F2d 278 (7th Cir. 1990) stolen or missing and sought assurance that no existing treaty prevented the importation of the Introduction mosaics into the United States. On July 7, 1988, In Autocephalous Greek-Orthodox Church of Cy- upon securing financing from an Indianapolis prus v. Goldberg & Feldman Fine Arts, Inc., the Bank, Goldberg purchased the mosaics in Switzer- Seventh Circuit affirmed an Indiana federal dis- land for $1.08 million. Within months, Goldberg trict court's holding that an art dealer was to relin- began her attempts to market and sell the mosaics. quish possession of stolen cultural property to its that the Church of Cyprus original owners, the Greek-Orthodox church. The It was then, late 1988, Autocephalous Greek-Orthodox Church of Cyprus discovered Goldberg had possession of the mosaics of Cyprus requested, in ("Church of Cyprus"), along with the Republic of in Indiana. The Church Goldberg return the mosaics, which Cyprus, brought a right of replevin action against writing, that Peg Goldberg ("Goldberg") and Goldberg & Feld- she refused to do. In March of 1989, the Church of man Fine Arts, Inc. Plaintiff-Appellee, the Church Cyprus filed suit in the Southern District of Indiana 2 district of Cyprus, claimed the removal of the mosaics was to recover the mosaics from Goldberg. The unauthorized and that the church maintained the court held that the cause of action was timely; it did right to possession. Defendant-Appellant Goldberg not accrue until appellees, by using due diligence, knowledge of who pos- claimed the mosaics were purchased in good faith knew or had reasonable and without any knowledge that they were stolen. sessed the mosaics. Further, the district court held The court, finding the Church of Cyprus used due that under the applicable substantive law of Indi- diligence in trying to locate the mosaics, held that ana, the Church of Cyprus was entitled to posses- its cause of action did not accrue until the possessor sion of the mosaics. Defendant Goldberg appealed of the mosaics was identified. The Court of Appeals the decision claiming that the court below commit- The Seventh Circuit upheld the lower court's ruling that the mosaics ted several reversible errors. were to be returned to the Church of Cyprus, the disagreed with Goldberg and affirmed the lower rightful owner. court's decision. Facts Legal Analysis The four Byzantine mosaics were first discovered First, Goldberg contended that the Church of Cy- missing by the Church of Cyprus in November of prus failed to file a timely complaint because 1979. The actual theft is presumed to have taken Indiana's statute of limitations for replevin actions place between August 1974 and October 1979, fol- runs for six years from the time the cause of action lowing the Turkish military occupation of northern accrues. The Seventh Circuit gave great deference Cyprds. Upon learning of the theft, the Republic of to the court below concerning the issue of when the Cyprus immediately took measures to inform con- Church of Cyprus' cause of action accrued under cerned organizations of its significant loss of cul- this Indiana statute. The court upheld the district tural property and to seek assistance in recovering court's application of a discovery rule which limits the missing pieces. the accrual of a cause of action to when a plaintiff knew, or should have known through due diligence, While in Amsterdam on July 1, 1988, defendant that a cause of action existed.3 Here, the Church of Goldberg was informed of the four Christian mosa- Cyprus was not aware it had a cause of action ics by an Indianapolis art dealer, a Dutch art dealer, against Goldberg until it learned of her identity and and their "attorney, who informed Goldberg that whereabouts in late 1988. The court found the such works were available for purchase. Goldberg complaint filed in March 1989 to be within the six was told that the seller of the mosaics was a Turkish year statute of limitations and, therefore, timely. antiquities dealer who "'found' the mosaics in the rubble of an 'extinct' church in northern Cyprus."1 22 Journal of Art & Entertainment Law Published by Via Sapientiae, 2016 1 DePaul Journal of Art, Technology & Intellectual Property Law, Vol. 1, Iss. 1 [2016], Art. 6 identified Goldberg as the current possessor of the The district court also held, in the alternative, that 8 the doctrine of fraudulent concealment would apply mosaics that the cause of action accrued. Under this doc- to toll the statute of limitations. The concurrence also considered the use of both a plaintiff trine, the use of deceit or fraud to prevent international law and United States law for pro- a cause of action prohibits a defen- from learning of tecting the cultural property of foreign nations. In the statute of limitations as a dant from raising particular, Cudahy mentioned the 1954 Hague bar.4 Again, the plaintiff is required to have used Convention and the UNESCO Convention as the its property.5 The due diligence in trying to locate most significant multinational treaties, as well as did not pass on the appropriate Seventh Circuit the United States' Cultural Property Implementa- application of fraudulent concealment, and, in- tion Act.9 Under these regulations, Cudahy pre- use of the discov- stead, accepted the lower court's dicted the Cypriotic mosaics would not only be ery rule. returned to the rightful owners, but doing so would Goldberg also attempted to suggest that the send a message that the cultural heritage of foreign Church of Cyprus did not use due diligence in its lands is to be respected. efforts to locate the missing mosaics. The Court of Appeals agreed with the district court that this Conclusion determination was to be made on a case-by-case A similar suit was filed in Federal District Court in basis and that great deference was to be given to Dallas in June 1990 by the Lutheran Church of the court below in its review. The court agreed with Quedlinburg, Germany to recover medieval trea- the conclusion that the Church of Cyprus was, in sures from the heirs of an American army officer fact, duly diligent in its attempts to locate the stolen who stole the artworks at the conclusion of World cultural property and the cause of action could not War II.10 The parties agreed in January of 1991 to reasonably have been discovered prior to late 1988. settle this dispute out of court; the heirs received $1 million for the return of the treasures and relin- Finally, the Seventh Circuit reviewed the merits of quished all claims of ownership." In addition, the the replevin claim to determine whether the heirs received $1.85 million in the spring of 1990 Church of Cyprus established its entitlement to the for two other Quedlinburg manuscripts. 12 mosaics. The court upheld the district court's use of Indiana substantive law to find that the Church of Attorney Thomas R. Kline of Andrews & Kurth in Cyprus had indeed met this burden.6 The Church Washington, D.C. who represented the Church of of Cyprus demonstrated that it did have title to Cyprus and the Lutheran Church of Quedlinburg possession, the mosaics were removed without au- says it is difficult to compare the very different thorization, and that Goldberg wrongfully held pos- results of the two cases because Texas law was not session of the mosaics. Goldberg never had a valid applied in the latter cause of action.1 3 Kline further claim of title to the mosaics because she purchased points out that it is actually irrelevant in the them from a thief who neither had a valid right of Church of Cyprus v. Goldberg case how diligently 7 possession nor could transfer any such right. Goldberg inquired about the mosaics because in the United States, a seller who does not possess good The Seventh Circuit declined to review the district title (e.g., a thief) has no authority to pass claim of substantive law court's alternative use of Swiss title to-a-buyer. Kline predicts that in future cases, not a "good faith which found that Goldberg was and, in the Quedlinburg treasure case had it gone purchaser" because she made only a perfunctory to trial, the courts will emphasize application of the of the sale of the inquiry into the suspicious nature discovery rule and the definition of fraudulent con- mosaics.
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