Red Ink
Local Gallery Owes Thousands To Artists. And Some Are Pissed.
Table of Contents: | Web Exclusive Extras
May 7th, 2008
Cover Story • Best New Band 2008 | Portland music insiders take our local scene to the chopping block—and come out with 10 new faves. 0 comments
May 7th, 2008
Holy Smoke | High times for marijuana marchers.7 comments
May 7th, 2008
Trib Translation | An annotation of last week’s news about the news.7 comments
May 7th, 2008
Murmurs • Where We Gather Each Week To See How We Live.4 comments
May 7th, 2008
Rogue of the Week • Elaine Franklin | Thy name is mud-slinging.1 comment
May 7th, 2008
Honor Thy Neighbor | But covet your own U.S. Senate candidate.0 comments
May 7th, 2008
Quick Picks for the Primary | A WW endorsements cheat sheet for your vote-by-mail ballot.2 comments
May 7th, 2008
Pop Quiz • What do you see in the picture? | WW’s weekly election feature—designed to scare the hell out of City Hall candidates.0 comments
May 7th, 2008
Getting In Gear | Can 5,000 cyclists swing a City Hall election?0 comments
May 7th, 2008
The Big Dump | A Sauvie Island resident’s fight to prevent an isle of blight.2 comments
 IMAGE: waltonportfolio.com |
[March 26th, 2008]
When City Arts LLC opened at 902 SW Morrison St. in November 2006, hopes were high that the gallery could be like Saturday Market with a roof.
But after just 14 months, City Arts LLC owners were three months behind on their $4,000 monthly rent to the city and owed $10,000 to artists.
So with the lease on the city-owned space up Jan. 28 and renegotiations unfruitful, City Arts LLC owners Toni Christensen, Tracie VanNess and Robert Moore had to tell about 90 artists that City Arts would be closing. And almost two months later, many artists have yet to be paid the remaining balance owed them for sold artwork.
The city wants its money, too, serving Christensen and Van Ness with a lawsuit March 18 in an attempt to collect unpaid rent, according to city property manager Diana Holuka.
Sculptor Michelle Gallagher, 52, was the first to file a small claims court lawsuit against City Arts owners for the $850 she’s owed and the first to file a claim with the attorney general’s Office, where financial fraud and consumer protection complaints can be reported.
“I did it on principle,” she says.
In a mass email to fellow artists March 13, Gallagher wrote, “I am only one of many artists who has not been paid for artwork sold in this gallery. Although I was able to retrieve my unsold pieces and display items, many others were not.”
Gallagher heard from about a dozen angry artists who were owed money ranging from $232 to $3,060. Other artists are standing behind the City Arts owners and blame the pitfalls on a fickle art economy.
Ceramic sculptor Elisabeth Cook Sullivan, 63, is owed between $400 and $500 but stresses the owners graciously reduced her rent when she had financial troubles of her own.
“It was a high-class place. I was really sorry that they were unable to make it,” she says.
City Arts attorney John Crowell told WW that the owners struggled financially with the business but never took out more than $1,250 a month each for their own salaries.
“They hoped the 2007 holiday season would bail them out, but in fact it was a disaster,” he says. “No one got rich here or received anything they didn’t deserve.”
Christensen, who has been a staple at Saturday Market, selling her handmade children’s clothes, says she will not be re-entering the Portland art scene.
“We’re devastated,” she says. “We’ve got a lot of shattered relationships that are going to take time to rebuild.”
As debts have started to generate lawsuits, owners may also face more than fractured friendships.
“We have a good consignment law in this state and it should be adhered to,” says longtime local artists’ lawyer Kohel Haver. “Part of that law says that the dealer is prohibited from diverting sales proceeds.”
In other words, dealers can’t use any money from the sale of artist’s work, other than the gallery’s negotiated commission, to pay off gallery debt. Legally, galleries may hold funds from artists’ sales for 30 days, then after that it’s a class C felony under Oregon consignment law if they don’t pay up.
Crowell contends the situation “is entirely a civil matter and not a criminal one.”
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Here’s what some of the artists who rented space from City Arts have to say:
Tamara Adams , 41, painter
Showed at City Arts since: November 2006
Amount owed: Undisclosed. “I’m OK with where I stand with them,” she says.
Adams says she admires the intentions of the owners to support local art. “I really care about all of them and am not about to crucify them over this,” she says. “It’s not like they’re holding some big bag full of artists’ money.”
Elisabeth Cook Sullivan , 63, ceramic sculptor
Showed at City Arts since: November 2006
Amount owed: Between $400 and $500
Cook Sullivan says City Arts was a well-done gallery. She says when she was going through a financial rough patch the owners graciously reduced her rent so she could stay. When it comes to the money owed to her, she says Christensen is adamant that she wants to pay her back. “To me, a class-action suit is ridiculous. You can’t get blood out of a turnip—there’s nothing there to go after.”
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Michelle Gallagher, 54, sculptor
Showed at City Arts since: September 2007
Amount owed: $850
“I wasn’t notified of the closing and was caught totally off guard,” she says. After realizing she was owed a sizable amount of money, Gallagher sent an email invoice that she says elicited no response from City Arts. She then mailed invoices to the owners’ homes. The letters were returned unopened. That’s when she decided to file with small claims court and send a mass email to encourage artists to fight back.
Sharon Geraci, 57, mixed-media collage artist
Showed at City Arts since: November 2006
Amount owed: $0
Geraci knew the owners from a number of years ago and says they did their best at a business where success is hard to come by. “I have no hard feelings,” she says. “I hope they can rise like the phoenix out of the ashes. It’s easy for artists to assume the worst and have unrealistic expectations.”
Marilyn Hake, 80, pencil illustrator
Showed at City Arts since: July 2007
Amount owed: $851 for artwork; $4,500 total, including travel and shipping expenses
Hake’s daughters took her to Portland for her 80th birthday from her home in Tipton, Kan. On that trip she met City Arts’ owners, who she says treated her “like an old friend they were getting reacquainted with.” She was encouraged to ship her art to Portland to sell in the gallery, which she did out of her own pocket. When Hake heard that the gallery had shut down—from a friend, not from the owners—she frantically called around trying to find her artwork. Of the pieces that were shipped back to her, again on her own bill, she says 22 items that hadn’t been sold were unaccounted for. “I’m in the hole big time,” Hake said.
Margie Lee, 58, painter
Showed at City Arts since: August 2007
Amount Owed: $450
Lee found out City Arts was “being forced to vacate right away,” from an email sent by City Arts on Jan. 26. The email asked her to pick up her work right away, which perturbed Lee because she had paid rent through Jan. 31. “To me, to try and cheat artists is like kicking someone in a wheelchair,” she says. “Everyone knows how hard it is for artists to make a living.” Lee filed a lawsuit with small claims court at the beginning of March and has yet to receive a court date. She has also filed a complaint with the Attorney General’s Office.
Joe Pogen, 60, metal sculptor
Showed at City Arts since: November 2006
Amount owed: $3,060
Pogen began to sense trouble last October when he was supposed to receive a large check from City Arts and they told him it had been stolen. In November he stopped getting paid. Owner Moore personally called Pogen to tell him the gallery was closing and to come collect his work. “I went within an hour to get my stuff,” Pogen said. “I asked them about the money they owed, and they said they doubted I’d get paid, and I believed them. I figure whatever they made they spent.”
Nancy Smith Klos, 48, tapestry designer
Showed at City Arts since: October 2007
Amount owed: $232
In December, Smith Klos was “ordered” to remove her work from the gallery. They told her “your stuff didn’t sell, we need it out of here,” she says, which was a breach of a three-month contract. After not being paid by City Arts for four months, Smith Klos asked for her money to no avail. “They have cheated a lot of artists out of their commission pay,” she said of the City Arts’ owners and their associates. “I’d say losses are up to $50,000.” She is not owed enough money to pursue the problem with a lawyer, she says, but is considering taking steps independently in small claims court after she sees the result of Gallagher’s case. Smith Klos says she is also upset that her 13-year-old daughter, Anna, is owed $9 from a gift certificate she was given by City Arts after performing an Irish step dance at the gallery at a First Thursday.
It is totally unacceptable that they paid themselves and not the artists. We provided the income and they were paid with our money. There is something terribly wrong with this picture.
Why is it "unrealistic" for artists to expect payment for artwork sold by a gallery? It was not a donation.
I showed my abstract acrylic paintings from November until I received a frantic call from one of the owners that last week in January. I was out of town at the time and was concerned that if I didn't immediately return to Portland I might lost my paintings. Luckily when I arrived at the gallery two days later my paintings were still there and safe, but the place looked dismal and torrid. I very quickly loaded my large paintings into my car, since there was a feeling of desperation, or emergency to the whole drama. When I asked the owners what happened, they told me the City had ordered them to vacate immediately when a decision was reached to not honor a few of the gallery's business requests. Why vacate so suddenly? I can only assume it was because the gallery must have owed money to the City and was given an emergency eviction notice as a result. I am owed about $300 by City Arts Gallery. I don't expect to ever see that money. Unfortunately the painting I sold to earn that money was one of my favorites. I hope it's in a good home now; I didn't have the chance to meet the buyer. Hopefully with enough discussion and understanding these wounds will heal for everyone. My sense is that mediation might be a better course than filing a lawsuit. Perhaps that will become a consideration for the group of artists and the gallery owners. Make peace when peace is possible.
Tiffany, I know you mean well, but this is breach of contract in my opinion and they are not owning up to it. Just last week I requested to meet with the owners and asked to include the other involved artists as well as the media. They did not respond, perhaps now that this article has run they will reconsider. Although I understand they let their lawyer do all the talking. So how is it that they owe us money, will not pay us, but can afford to hire an attorney? I still say there is something wrong here.
We are not trying to be mean or vindictive, or seek publicity. We only are trying to get what is owed to us, legally. There is no peace without justice, and no wrong can be righted by denying it or hoping it will go away. The artists deserve to be paid (As the Oregon consignment law indicates) for the work that we had on consignment at the gallery, work that we paid for the materials the art objects are made from, we paid for the space in which we created them (our studio space), and we spent hours making and preparing for exhibition and paid for the gas and parking transporting, we paid a rental fee for the space, and spent hours on bookkeeping. We have paid and now we need to get paid.
I do agree, that karmically and legally speaking, if there was a breach of trust and legal missteps were taken, then appropriate justice is due. I always prefer resolution through discussion as a first choice, but both parties must be open to that. I just hope that we can resolve this both legally and peacefully.
I contacted Michelle Gallagher via email two weeks ago and attempted to set up a personal meeting. She wrote back after several days and said she was "too busy" and would get back to me. We have not heard from her, understandably so, since she has apparently devoted her life to scorn and anger. Tiffany, I think you know how sorry we are that this occurred, but there were issues with the City that could not be addressed. We had a vision and tried as well as we could to help artists in this community. We obviously cannot control the anger of these 3 women, but wish them well nonetheless. I agree with you that these issues could be better addressed with understanding and kindness rather than anger. We are willing to speak with any of our artists, and wish the opportunity to have our sides heard.
We placed our glass art at City Art in December of 06. In the seven months we were there we had to argue with Toni and Traci five of those months to get our money for art sold. We pulled out in July of 07 with one month left on our contract when they told us they were not responsible for a "missing piece". We emailed the ORS statute covering art consigned for commisions and the check was in the mail the same day. I really wanted this business to work as artists always need more venues to show their work. Everytime we or other artists tried to offer helpful suggestions on marketing, signage or other business ideas they treated us with disrespect as though we did not know what we were talking about or it was none of our business. I have never in 23 years as a graphic and marketing professional been treat this way. Between the constant money issues and the disrespect I had no problem pulling our art and leaving, I feel very bad about the others who are losing money. City Arts is blaming the city for their problems but this a business that had the appearance early on of operating on little or no money just by the way they treated us and others regarding payment or "lost art". We all wanted the venue to work and kept hoping for fair treatment and success but it never happened.
I am surprised to find non-payment problems so early on in the store's existence. I was not paid for Dec-Jan. but then I had only been in the gallery
since August of 2007
On your attempt with marketing I too, asked them why there were no ads (even during the holiday season) and even made a flier myself (I worked as a graphic designer for years) and brought it in for them and they totally blew it off. I would use the word disrespect as well.
We also suggested the items have price tags...which was disregarded as well, and at one point, a customer asked for a price of a painting high on the wall, and they didn't even have it on the computer or in a file and they had to get a step ladder and get it off the wall (about twelve feet up) and then when the customer wanted to think about it, they replaced it and a few seconds later it came flying down and landed on a rack ripping two 9 inch slits in the canvas. It was a portrait and one slit was right on the throat! This was on first thursday too so luckily no one was hurt. Ultimately I repaired the canvas (many hours of work and costly materials) and sold it I have received no payment from City Arts on this item and another.
I have a correction on my last comment. I have two incidents mixed up and actually with the painting falling off the wall, that customer wanted to see the painting up close, which is certainly her right and a common practice in galleries. What is not common is the painting falling off the wall.
I read Lillian Hogan's article on the late City Arts Gallery with interest. Having identified with the artists, it was most interesting to see the owner's take on the situation. They seem to be playing the part of the victims! They"never took more than $1250" a month from the gallery. How charitable of them. They claim to be artists, so it is only natural to ask how they would react if someone stole their work...and I do consider it a theft. If they owned a grocery and refused to pay their purveyors, they would be sued and forced to pay. How is this situation different? Recently the Screen Writers Guild went on strike for non payment of their work and the picket lines were filled with actors and directors in solidarity. All arts and artists are connected and have elephantine memories. I am sure the names Christensen, Van Ness and Moore will not be forgetten should they ever reach out to the arts community in the future. Although their attorney states that it is a civil case rather than criminal, I am certain the artists do not agree...they were robbed. I hope these scam artists see the light and fulfill their obligations rather than whining and trying to wriggle out of the contracts! For shame!!
"Judge Mathis" is a nationally syndicated court program that has been hearing public interest cases for the past 8 years. We are interested in litigating the City Arts claims. We will pay for travel expenses to and from Chicago. Please call me on my toll free line if you are interested in us hearing your case(s). My phone number is 877-721-9810. Thank you. Michael Hart, Senior Producer
After reading this article, I am appalled and disgusted, not only by the poor and inacccurate reporting by Ms. Hogan, but also by the unkind remarks being posted on this website. I am an artist from the midwest, and have been acquainted with these ladies for over 5 years. They are good and hardworking people who simply tried a risky business venture at a time when the national economy is rapidly heading into the toilet. Give them a break. I wonder if any of you "artists" might have done better? Why not take a walk in their shoes for a moment, and try judging others as you would yourselves. To Willamette Week: No wonder your "news" paper has such a shoddy reputation in Oregon and elsewhere. This whole story is a sham. The reporter might think about taking some journalism classes at the local community college!
Hey Frank, Did you have any art at City Arts? Did you lose any money? I don't think we are looking for any "charcter witnesses" in this deal, there are just a lot of artists who in good faith left art with these people and have not been paid. I was lucky, I got out early but had to be persistant in my book keeping and collection efforts.
Frank Dalley, with all due respect...what would you know about all this? You are "acquainted with the ladies"? Listen, pal..."the ladies" charged the artists rent. Then they sold the artist's work. Then they used the proceeds from both rent and sales to pay themselves. How does your nice friendship with these "nice ladies" change those facts? You are obviously some sort of plant. The scammed artists and the writer of this article have a much clearer picture than you have. Honest.
I have been creating visual art for the past 38 years and teach Art As Business as PCC, Cascade division. If some of the artists who have problems with City Arts want to contact me by e-mail and possibly come in for a short discussion with their fellow artists in my class that would be great. I have seen these problems occuring with the art market since I decided to go pro in 1970. Thanks to e-mails and blogs we are more in touch with this problem that faces artists who make a living doing what they love to do. Norman Thomas
Many people think artists have to be independently wealthy to do their art,
or be extremely energetic and have a day job and work at art in the evenings
and on weekends. But this is a elitist policy, not fitting to an open society.
Art should be available to everyone, and that can only happen when art is valued for what it is, the artist is paid for their work and offered the protections of any one business.
If we sold paper clips certainly there would be no discussion. We would expect to be paid! This denegration of art, filters all the way down to our
Schools. I would be happy to come to your class and talk with other artists. mrlee@imagina.com
City Arts was my first experience having professionals sell my stuff. I've learned a lot; especially that I should be a more effective in tracking what I have on consignment and what I am owed. I am glad I tried working with them, but it was an expensive lesson.
I'm torn between being understanding about a painfully failed venture and having solidarity with others that really should have been treated better.
I, too, am torn between being understanding about this and joining the other artists who are filing small claims. City Arts owes me $450, which I could really use to help pay my own past due bills. The article actually was informative to me, because my emails to the owners haven't been answered. The fact that they took pay themselves without paying us first especially bothers me. I'm still not sure what I'm going to do, but thanks for all of your posts.
I read this story in WW as I was preparing to open my own boutique with consigned art. I can't imagine taking a salary before paying the artists. Instead of that, my partner and I are living off of the proceeds from our own art and using our commission to run the business. I really hope this doesn't make it harder for the rest of us to get consigned art in our shops and galleries.
The facts are: Oregon has an art
consignment law which requires galleries to hold all
proceeds from consignment sales in a trust account.
If the owners spent this money, that is against the law. They have no excuse! Intentions are beside the point.