When does the statute of limitations start to run on a tortious interference with contract claim when the breach occurred somewhere on a spectrum of increasingly breach-like behavior? The Appellate Division, First Department, tackled that question in a May 6 decision concerning a long-running dispute involving the work of world-renowned Chinese-French artist Chu Teh-Chun. In S.A.R.L. Galerie Enrico Navarra v. Marlborough Gallery, the First Department agreed with the Supreme Court that plaintiff's claims for tortious interference with contract and aiding and abetting tortious interference with contract had not expired as a matter of law, because all of the elements of the claims had materialized before the statute of limitations had run its course. The case highlights the challenges of determining when a breach of contract occurred, and the tension between statutes of limitations and the rights of an injured party to bring a claim.

Background

The facts underlying this case go back to 2003, when the plaintiff, Galerie Enrico Navarra (Navarra), contracted with a non-party, the now dead abstract artist Chu Teh-Chun (Chu). Under their agreement, Chu would design 24 ceramic plates, and Navarra would support Chu by, among other things, paying for the production of the plates, helping to promote the sale of the plates, and, ultimately, selling the plates.

Allegedly because of tortious interference by the defendant, Marlborough Gallery (Marlborough), the relationship between Navarra and Chu soured over the next few years, and in February 2007 Chu first sent a cease-and-desist letter to Navarra claiming that the gallery had breached their agreement. Then, two months later, Chu sued Navarra on the same grounds in France. In May 2008, Chu took additional action against Navarra, first by sending a letter to Christie's in Hong Kong, casting doubt on the authenticity of plates that Navarra had arranged to be auctioned there, and demanding that Christie's withdraw the plates from auction. Then, in October 2008, an advertisement appeared in a French art magazine announcing that the plates that Navarra was offering for sale were not authentic.