Journals
Friday,Feb 27 2009, 08:05:13 PMPark West Contracted Auctioneers Speak Out
Article # 2
Park West Galle(r)y Slaves? Indentured Service at the Art Auctions Afloat
or
How to get two and a half months' or more work out of someone for no pay before replacing them with the next sucker
Battling With No Sales
All through 2008, the majority of the Park West auctioneers were shocked as auction after auction confirmed the record slump in sales. E-mails between the auctioneers on the different ships echoed the same dismal news. Sales had just bottomed out. Park West Gallery, not thinking that this was a symptom of a crashed economy or realizing that it was an epidemic spanning all ships and all personnel, attributed the slump to poor skills on the part of the auctioneers.
At the annual auctioneers' conference in September 2008, the auctioneers were told that they had to get back to basics, back to volume sales, reworking the signature Park West "mystery piece" program to ensure a basic level of sales. What Park West failed to realize was that the economy had by now wholly and directly affected their business. People simply were not buying the art, no matter what methods were employed or how skillful the auctioneers.
After the conference, when they returned to their assigned ships, many auctioneers attempted to get back to the basic auction sales gimmick of having the "mystery program" fill in the volume sales. Park West advised all auctioneers to adhere to the relaunch of the old "mystery program". The auctioneers quickly found out that this had little or no affect on sales. With the economy the way it was, people were simply not buying.
Exit the Auctioneers, Enter the Rumors of Pay Guarantees
As described in Article # 1, with the auctioneers not only working for no pay but also getting into debt to Park West, many abandoned ship, some permanently, some for vacations. Park West suddenly realized that they were facing a real staffing issue. As a means of curtailing the mass departure and vacancies on the ships, rumors began to circulate around November 2008 of the introduction of a new thing for Park West, a guarantee of a basic salary for its auctioneers and a salary for its associates. Personnel were asked to be patient while the program was worked out. Park West reportedly laid off a number of its laborers on hourly pay in the Miami Lakes facility in order to provide capital for the guarantee.
Over the following months, auctioneers were promised a guarantee by their fleet managers and were asked to stay on, on the understanding that the guarantee would be made retroactive back to October. Many took the word of their fleet managers and stayed. One has to keep in mind that every single day that an auctioneer is on a ship, he or she is responsible for the associated costs. Many decided to stay on the assumption that the associated costs would be covered. The rumors and promises from the fleet managers talked about a guarantee of $500 up to $900 per week.
Various associate auctioneers who attended a secondary training session in Southfield and Miami in November 2008 reported that they were offered a base salary guarantee at the beginning of and throughout the training. They also reported that many who had been considering leaving, when they were given an assurance of a base pay, decided to stay. These associates had witnessed the lead auctioneers losing money every week. Why would they choose to accept a lead role otherwise? It was reported that the reason many of them decided to accept the position of auctioneer was the promises made of a guaranteed base salary. These associates were being groomed to take the lead role immediately after training. Some, trusting what was offered to them, accepted lead roles. Others preferred to remain in the safety of an associate role with its guaranteed salary.
In early January of this year, the "guarantee" was finally implemented. Some auctioneers immediately noticed that it was not a guarantee at all, but rather that it simply assisted the auctioneer by absorbing some of their costs. This was in stark contrast to what was promised and offered. Some of the auctioneers who noticed this resigned immediately. Many did not take note as they were or are too busy to read the fine print of the guarantee.
The guarantee is not what was presented to many auctioneers. It seems to have gone through many changes from when it was first discussed to when it was actually rolled out. It really works as an amount to be credited towards expenses incurred by the auctioneer. It does not guarantee the auctioneer a weekly paycheck at all.
Wednesday,Feb 25 2009, 05:15:03 PMPark West Contracted Auctioneers Speak Out
The following series of articles or bulletins have been pieced together from information received from currently or recently contracted Park West auctioneers and other personnel. They are published here in the interests of the buyers and potential buyers of art at the cruise line art auctions, so that they can be fully aware of what they are dealing with, and in the interests of those many individuals who are being taken on, trained and employed as associates and auctioneers on the cruise ships, so that they may know their fate. The information has been provided to us by those who are concerned about the fate of the auctioneers.
Article # 1
Park West Gallery's Very Real Personnel Problems and Highly Questionable Solutions
The year 2007 was a bad one for Park West Gallery. In fact, it was the worst year on record in terms of sales.
But if 2007 was bad, 2008 was horrendous. Park West ascribes the last two years' crash in sales to the state of the economy. The credit crunch of 2008 seems to confirm this theory.
Whatever the actual causes of the situation, the consequences have been severe in terms of recruiting and keeping auctioneers. In 2007 and 2008 many veteran auctioneers have left the company because they could no longer earn the sort of money they were used to.
The Park West Auctioneer System
The auctioneers at Park West are independent, self-employed contractors that work for a company that is insulated from Park West called Plymouth Auctioneering, based off shore in the Turks in Caicos Islands, and they are paid on commission - or at least, they have been heretofore. They have expenses to cover out of their commissions including champagne, labor, an associate auctioneer or more than one, and an art steward or stewards. Park West also charges the auctioneers for promotional materials, rental of computers, credit card fees, rental of a scanner and so on. There are also fines levied for a variety of reasons.
All of these charges, expenses and fines add up. But top auctioneers were earning so much money prior to 2007 that they could absorb them without a problem. However, when sales slumped, the situation changed, and it changed so dramatically that many auctioneers would close out their month's accounting and find that, instead of a pay check from Park West, they got an invoice and not only did they not earn anything for all their month's work, they ended up owing Park West money.
Earning a Minus Paycheck
In the summer of 2008, the economy caught up with Park West, and sales nose-dived. It was like hitting a brick wall. It made 2007 look good. People stopped buying. This happened almost in concert with the credit crunch and the bank crashes - almost to the day. Sales almost stopped but attendance was still up, so the auctions continued to run, along with all their associated costs. With no money coming in to offset them, these expenses now became the concern and responsibility of the auctioneer.
The associate auctioneer was only making 1% of sales as a commission and this was paid by the auctioneer. But, the auctioneer had it worse. He had to cover the expenses. An art steward costs about $250 per week. It costs about $180 to $360 per auction to have labor set up and take down the auction. The costs for champagne vary from ship to ship but it could cost $30 per auction or even up to $300 per auction. Some cruise lines only charge the auctioneer cost for champagne, while others charge a reduced retail price. It is safe to say that it could cost an auctioneer anywhere between $200 and $600 per auction all told. Most 7-day cruise ships run two auctions per week. Park West had covered some of the expenses in a predetermined allowance, but it would not be uncommon to have an auctioneer on the hook for $400-800 per week. That's right, when an auctioneer got his statement for the month, he might find he owed money to Park West. It might only be a few hundred but it also might be as much as $1-3,000 or more per month. Imagine that. Not only was he working for no pay, but he now owed Park West that amount.
Friday,Feb 13 2009, 04:29:17 PMFine Art Registry® Press Release
Fine Art Registry® Press Release
David Phillips, Fine Art Registry
206-420-8341
www.fineartregistry.com
dphillips@fineartregistry.com
PARK WEST GALLERY'S CASE AGAINST FINE ART REGISTRY® DISMISSED IN
FEDERAL COURT IN FLORIDA (CASE NO. 08-21711-CIV-UNGARO)
(Phoenix, AZ, Southfield, MI, Miami, FL — 12 February 2009) Park West's defamation case against Fine Art Registry was dismissed by US District Judge Ursula Ungaro on 10 February 2009, "for failure to prosecute in the name of the real party in interest," thus ending Park West Gallery's boasts of a "multi-state legal suit against Fine Art Registry" so frequently repeated in its press releases, paid internet ads, and to dissatisfied customers calling in to request refunds for artwork purchased.
Clearly, Judge Ungaro saw through Park West's thinly veiled attempt to file the same suit in two different states under a different name in an attempt to harass Fine Art Registry and thus prevent further exposure of Park West Gallery's questionable business practices, and FAR® advocacy to victims of these practices. Fine Art Registry has published many case studies, articles and videos, reporting Park West Gallery's sale of inauthentic, overpriced and misrepresented art aboard cruise ships and at its land-based "art auctions".
The judge's decision to dismiss the case came after the plaintiff's (PWG Florida Inc.) attempt to explain why they felt they had the right to file suit. The case was dismissed soon after Park West's much advertised hiring of ex-U.S. Attorney and ex-FBI art team legal advisor, Robert E. Goldman, to represent them in their cases against Fine Art Registry, including this Florida case where he had entered an appearance and taken deposition.
Park West Gallery's duplicate case against Fine Art Registry, filed in Michigan, is still undecided as to jurisdiction, while Park West Galleries has now been sued in Michigan by a large group of dissatisfied customers, for fraud and conspiracy among other allegations. The beleaguered Southfield, Michigan gallery has reportedly withdrawn all of its Salvador Dali prints from all cruise ship art auctions following the release by Fine Art Registry of a documentary in which internationally renowned Dali experts examine a set of one hundred Dali prints sold by Park West to two of the plaintiffs in the Michigan case for close to $500,000, and determined that the signatures on the prints are forgeries.
Lawrence C. Atorthy, senior associate at Kaufman, Payton & Chapa, the Michigan law firm representing Fine Art Registry against Park West, said, "We are pleased that the federal court in Florida saw through the smoke and mirrors thrown up by Park West. Park West's SLAPP lawsuits are designed merely to stifle legitimate scrutiny of its business practices. This Court recognized that PWG Florida, Inc. had no legitimate claim against Fine Art Registry, and the Court acted appropriately. We believe that Park West's lawsuit in Michigan will suffer the same fate."
Theresa Franks, CEO of Fine Art Registry who had been personally named as a defendant in the Florida case was not at all surprised by Judge Ungaro's decision. "It was clear to me from the start that the Florida case filed by Park West was simply part of their ongoing strategy to attempt to silence anyone who tried to expose their practices, by legal bullying. Park West Gallery has a history of using frivolous litigation to accomplish their ends. We will continue to publish the facts as we know them and we expect the Michigan cases to expose Park West Gallery's true character and practices in the near future."
ABOUT FINE ART REGISTRY:
Fine Art Registry® is today's only high
tech solution to the age old problems that have existed in the art
world since before the Ancient Greeks: How to establish provenance,
prove authenticity and ownership, prevent forgery and fakery, deter
theft and, basically, make it possible to create, buy and sell works of
art with the security of knowing that they are what they claim to be.
Full information on FAR® and how the system of tagging and registering
art is available at www.FineArtRegistry.com.
ABOUT KAUFMAN, PAYTON & CHAPA:
Founded in 1975, Kaufman, Payton & Chapa, now has offices in
Farmington Hills, Detroit and Grand Rapids and represents clients
throughout the state of Michigan. Known for the aggressiveness and
tenacity of it attorneys and its results-oriented approach to cases,
the firm represents clients in trial and appellate matters large and
small. For more information visit www.kaufmanlaw.com or contact Jonathan H. Schwartz – (248) 626 5000 JHSchwartz@kaufmanlaw.com.
View the case files below: Read More Here
Tuesday,Feb 10 2009, 06:06:23 PMVictims of Park West Gallery:Debbie Seagle and D..
(This is another in a series of many case studies of reported fraudulent misrepresentation and deceptive trade practices at art auctions conducted at sea on cruise ships and vicious customer services practices for their customers. Fine Art Registry® has received request for help from over 220 Park West clients to date.)
Passengers
Debbie Seagle and David Urbanski of Dublin, Virginia.
Cruise line, ship and details of the cruise
Celebrity Galaxy August 21 - September 1, 2008.
Park West Auctioneers
What was bought?
Details of the Purchase
It was a deliberate hype to appeal to us as a couple on our first vacation together. We were not in an analytical state of mind at 2 am after being in the casino for three hours.
Were you sold the art as an investment? What was said exactly?
Were you sold the art as a bargain? What was said?
Were you able to do due diligence on board before buying? Did you try? Was there any problem with that?
I tried to get onto the ship's internet several times, but it was not working properly. The IT cruise employee refunded some of the minutes I purchased because of their poor connection. I was unable to stay online long enough to get to any sites.
