Legal Question in Business Law in California

Art Gallery in California not paying for sold artwork
I had 12 galleries representing my work, four of these galleries hand closed their doors in the last four months do to the rescission, and a few are not paying for work sold during the Christmas season. The gallery in Tahoe City has been for the last year has been holding back on paying me. Two months ago the gallery owner waited three months before paying, and now it has been two months without payment for the December sells. This amount could come to over $2000, but because he will not communicate with me I am not sure just want work was sold, but the amount owed could run as much as $3500. I did talk to an employee who told me that two pieces were sold in December, with the possibility of three pieces being sold, but could not give details. In Oregon the gallery must pay within 30 day of sale, but I can not find any law in California that relates to when payment must have to paid.

My question is; How long can a gallery in California go before it must pay for sold artwork?

Asked on 1/30/09, 1:35 pm

3 Answers from Attorneys

Terry A. Nelson Nelson & Lawless

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Re: Art Gallery in California not paying for sold artwork

Payment has to be made when you force them to. The longer you wait to take action and sue, the more likely galleries will close without paying you, ever. Closed is closed; you'll never see a dime from them. Hire an attorney now, rather than later.

Answered on 1/30/09, 1:50 pm

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Cathy Cowin Law Offices of Cathy Cowin

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Re: Art Gallery in California not paying for sold artwork

In California, if you don't have a contract, the court will imply "reasonable" terms, which may also be construed by past behavior (e.g. they always paid me within 60 days in the past and everyone seemed okay with that performance). I would anticipate a reasonable time for payment to be around 30-days unless you've been operating under other arrangements as a matter of past history. An important date to keep in mind is that you have two years to sue on an oral agreement. It may also be time to consider putting a written contract in place. There are many things that a written agreement could address besides solidifying when you can expect performance. For instance, in the event of a dispute, you would probably prefer not to have to sue an Oregon gallery in another state and it would be favorable to have the right to collect attorney fees in the event a dispute went to the level that you had to obtain counsel.

Answered on 1/30/09, 1:56 pm

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