Date of Award

1996

Document Type

Thesis

Degree Name

Master of Science

First Advisor

Rita Kottmeyer

Second Advisor

Patricia Soucy

Third Advisor

Janet Cobert

Abstract

This thesis will focus on three specific court cases and the relevant decisions as they relate to the hypothetical concept of Fair Market Value and the concept of a blockage discount.

In recent years, cases involving artists' estate holdings of unsold works have dealt with Fair Market Value and a blockage discount. The three main cases are the Estate of David Smith, the Estate of Georgia T. O'Keeffe, and the Estate of Andy Warhol. In all three cases, the court was asked to decide what amount, if any, was to be applied for a blockage discount. While each of these cases is unique in its specific circumstances, there are several common bonds between these three cases.

The court cases are analyzed in regard to the specific market delineation, demand analysis, the court facts, theories, the court decisions and important rulings. Also, the overall implications from the courts' decisions to general appraisal practices are discussed.

The court cases are analyzed in regard to the specific market delineation, demand analysis, the court facts, theories, the court decisions and important rulings. Also, the overall implications from the courts' decisions to general appraisal practices are discussed.

Finally, chapter V introduces an alternative valuation solution for the Estate of David Smith. Instead of appraising the estate in the realm of a personal property appraisal, information will be introduced suggesting that the estate meets most, if not all, of the requirements for that of being appraised as a sale proprietorship of the artist.

Creative Commons License

Creative Commons Attribution-NonCommercial 4.0 International License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License

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