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The Art of the Sale: Museums and Deaccessioning

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Book cover Art, Cultural Heritage and the Market

Abstract

In recent years sales of objects by museums from their collections have provoked growing concern. Such sales have become more common as institutions face increased budgetary constraints. This chapter examines the common law (primarily that of Canada and the United States) surrounding museums and those responsible for their management. It looks at recent cases where instances of deaccessioning have been challenged in courts. The idea of expanding legal standing to challenge museum practices, to include stakeholders such as donors, museum association members and student groups, is also explored. A recent failed attempt in New York state to introduce legislation restricting deaccessioning is described. The role of non-legally binding ethical codes developed by museums and museum organisations is assessed in terms of both the formation of higher institutional standards as well as the possible relevance of such codes to the application by courts of existing laws. The chapter then describes in detail a controversial decision in 1985 by Newcastle University to sell a large collection of indigenous objects, mostly originating from what is now Papua New Guinea. This sale led to extensive debate about the appropriate location of such historical collections as well as the desirability of their removal to a country other than their place of origin. Finally, suggestions are made as to the desirability of voluntary adherence to transparent codes of practice and consultation by museums with stakeholders instead of introducing laws regulating the act of deaccessioning itself.

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Notes

  1. 1.

    Dennis v. Buffalo Fine Arts Academy, No. 50520(u), slip op. at 3, 836 N.Y.S.2d 498 (Table) (Sup. Ct. Erie Cty., 21 March 2007).

  2. 2.

    See Oxford Dictionaries, available at: http://oxforddictionaries.com/definition/english/deaccession. Accessed 28 May 2013.

  3. 3.

    See Malaro (1998), pp. 9–10.

  4. 4.

    S.C. 1990, c. 3.

  5. 5.

    20 U.S.C. §§ 41–80 (2000).

  6. 6.

    On immunity and art loans generally, see Van Noudenberg (2012).

  7. 7.

    Restatement (Second) of Trusts, §368, comment b, at 248 (1957).

  8. 8.

    See People ex rel. Scott v. George F. Harding Museum, 374 N.E. 2d 756 (Ill. App. Ct. 1978).

  9. 9.

    In essence, the rule against perpetuities prevents the testatrix from inserting clauses in her will that would control or affect the distribution of assets long after her death, a concept that in civil law countries is often referred to as control by the “dead hand” or mortmain.

  10. 10.

    [1965] 1 Ch. 85 (C.A.).

  11. 11.

    [1965] 1 Ch. 85 (C.A.) at p. 107.

  12. 12.

    In Canada the provincial attorney-general is usually vested by common law or statute with the power to oversee charities. The same situation obtains in the United States, see generally Blackwell (1938) and Note 1968.

  13. 13.

    See Hardman v. Feinstein, 240 Cal. Rptr. 483 (Ct. App. 1987) and Owens v. Magill, 419 S.E. 2d 786 (S.C. 1992).

  14. 14.

    California adopted a non-profit corporation law in 1980 which established a broader class of individuals who could challenge the actions of nonprofit directors.

  15. 15.

    Examples of unsuccessful attempts include: Dickey v. Volker, 11 S.W. 2d 278 (1928), Viegand v. Barnes Foundation 374 Pa. 149, 97 A 2d 81 (1952), Miller v. Alderhold 184 SE 2d 172 (1971). There are, however, instances where courts have taken a more broader view: see Sehner v. Alexander 89 (Penn. 39th Jud. Dist. Franklin County, Ct. of C.P. Orphan’s Ct. Div.) 262 (1979), Stern v. Lucy Webb Hayes national Training School for Deaconesses and Missionaries, No. 267–273 (D.D.C. 1973) and Gordon v. City of Baltimore 267 A. 2d 98 (1970).

  16. 16.

    See e.g. San Diego etc. Boy Scouts of America v. City of Escondido, 114 Cal. App 3d 189 (1971).

  17. 17.

    Rowan v. Pasadena Art Museum, No. C322817 (Cal. Sup. Ct. L.A. County, 22 September 1981).

  18. 18.

    See, e.g., Cullity (2002) and Katz (1987).

  19. 19.

    Meinhard v. Salmon, 164 N.E. 545, at 546 (1928), per Cardozo, C.J.

  20. 20.

    183 P.3d 61 (Mont. 2008).

  21. 21.

    183 P.3d 61 (Mont. 2008) at para 53.

  22. 22.

    183 P.3d 61 (Mont. 2008) at para. 81.

  23. 23.

    S.C. 1990, c. 3.

  24. 24.

    See Paterson (2007), pp. 421–427.

  25. 25.

    See generally Dobrzynski (2011).

  26. 26.

    Assem. B. 6969-A, 232 Sess. (NY 2009).

  27. 27.

    See Pogrebin (2009), at p. C1. Permanent Board of Regents regulations, which also prohibited the use of deaccessioning sale proceeds for operating costs, became effective in May 2011. See generally Tam (2012), pp. 849–901.

  28. 28.

    See Pogrebin (2010), at p. C1.

  29. 29.

    The ICOM Code of Professional Ethics was adopted unanimously by the 15th General Assembly of ICOM meeting in Buenos Aires on 4 November 1986, amended by the 20th General Assembly of ICOM in Barcelona, on 6 July 2001, and revised by the 21st General Assembly in Seoul, on 8 October 2004.

  30. 30.

    ICOM Code of Ethics for Museums, Section 2.15.

  31. 31.

    ICOM Code of Ethics for Museums, Section 2.15.

  32. 32.

    ICOM Code of Ethics for Museums, Section 2.16.

  33. 33.

    There is a Canadian Art Museum Directors’ Organization which was founded in 1964 and modeled on the AAMD. Its deaccessioning guidelines prohibit the use of the proceeds of sales of objects in member museum collections for operating costs.

  34. 34.

    See AAMD Policy on Deaccessioning, 9 June 2010, at I(B), p. 4 available at: https://aamd.org/standards-and-practices. Accessed 28 May 2013.

  35. 35.

    See AAMD Policy on Deaccessioning, 9 June 2010, at I(B), p. 4 available at: https://aamd.org/standards-and-practices. Accessed 28 May 2013. at II, pp. 4–5.

  36. 36.

    Pogrebin (2011).

  37. 37.

    See AAM Code of Ethics for Museums, adopted in 1991, amended 2000, available at: http://www.aam-us.org/resources/ethics-standards-and-best-practices. Accessed 28 May 2013.

  38. 38.

    Canadian Museums Association, Ethics Guidelines, Ottawa, 2006, Section E.4.3.

  39. 39.

    See Indianapolis Museum of Art Deaccession Policy (February 2008) available at: http://www.imamuseum.org/collections/deaccessioned-artworks. Accessed 28 May 2013.

  40. 40.

    See Anderson (2010).

  41. 41.

    See supra, n. 39.

  42. 42.

    See Rosenbaum (2009).

  43. 43.

    See generally Brown (1908). See also Gardner (2000), p. 35 and Gardner (2006).

  44. 44.

    The majority of this photographic plate collection is now located at the Australian Museum in Sydney. Brown’s diaries and manuscript collection is at the Mitchell Library in Sydney (part of the State Library of New South Wales).

  45. 45.

    With the Universities of Durham and Newcastle upon Tyne Act 1963, King’s College became the University of Newcastle upon Tyne, leaving Durham University based solely in its home town.

  46. 46.

    See generally Davis (1985).

  47. 47.

    The George Brown Ethnological Collection, Press Release, Newcastle University, 5 November 1985.

  48. 48.

    The Observer, 17 November 1985.

  49. 49.

    Nurse 1985.

  50. 50.

    Geddes-Brown (1986).

  51. 51.

    Undated letter to the Vice Chancellor of Newcastle University on file with the author.

  52. 52.

    “Resignations Over Plans to Sell Art”, Newcastle Journal, 7 December 1985.

  53. 53.

    Letter from Professor Miles Danby to the Vice Chancellor of the University of Newcastle Upon Tyne, dated 18 March 1985 on file with the author.

  54. 54.

    Letter to Professor Laurence Martin, Vice Chancellor, the University of Newcastle, from S.R. Elson, Director, North of England Museums Service Limited, dated 9 December 1985 on file with the author.

  55. 55.

    The Observer, 24 November, 1985.

  56. 56.

    See Maurice and Turnor (1992), pp. 273–296 and Wang (2008), pp. 227–269.

  57. 57.

    Watson (1985).

  58. 58.

    See Benthall (1986), pp. 1–3.

  59. 59.

    See Gardner (2006), p. 152.

  60. 60.

    Specht (1987), pp. 1–3.

  61. 61.

    See Herle et al. (2002).

  62. 62.

    See Ishimori (1999).

  63. 63.

    Minutes of the Council of Newcastle University: XVIII University Museums and Gallery, July 1986.

  64. 64.

    Panero (2012), pp. 4–12.

  65. 65.

    The Financial Accounting Standards Board was established in 1973 and seeks to establish and improve standards of financial accounting and reporting for nongovernmental entities.

  66. 66.

    Museum accounting in the United States had been primarily based on Daughtrey and Gross (1978). For a discussion of earlier practice see Glazer and Jaenicke (1991), pp. 28–43.

  67. 67.

    See Statement of Financial Accounting Standards No. 116: Accounting for Contributions Received and Contributions Made, (June 1993).

  68. 68.

    Statement No. 34 of the Governmental Accounting Standards Board: Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Governments, (June 1999).

  69. 69.

    Statement of Federal Financial Accounting Standard 8: Supplementary Stewardship Reporting.

  70. 70.

    See Professional Practices in Art Museums (Association of Art Museum Directors, clause 38 and Appendix B (Deaccessioning and Disposal), Section D (2011).

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Acknowledgements

The author would like to thank the Vancouver law firm, Farris Vaughan Wills and Murphy LLP, for supporting the research that made this chapter possible. Thanks are also due to Tony Tynan, Les Jessop and Helen Gardner for their valuable assistance. All are absolved from responsibility for any errors this chapter may contain.

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  1. University of British Columbia, Vancouver, BC, Canada

    Robert K. Paterson

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  1. Faculty of Law, Maastricht University, Maastricht, Limburg, The Netherlands

    Valentina Vadi

  2. Faculty of Law, Maastricht University, Maastricht, Limburg, The Netherlands

    Hildegard E. G. S. Schneider

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Paterson, R.K. (2014). The Art of the Sale: Museums and Deaccessioning. In: Vadi, V., Schneider, H. (eds) Art, Cultural Heritage and the Market. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-45094-5_12

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