Jerome M. Eisenberg, Inc. v. Hall
Supreme Court of New York, Appellate Division
48 N.Y.S.3d 71 (2017)
Jerome Eisenberg (plaintiff), an expert in classical antiquities, purchased two ancient-seeming pieces — the Faustina II bust and the Etruscan Warrior statue — from art dealer Maurice Hall (defendant), who lacked similar expertise. Both parties believed the pieces were authentically ancient at the time of sale, but Eisenberg later learned both were modern replicas; around the same time, other purchases from Hall also turned out to be inauthentic, and for those the parties simply rescinded and Hall refunded Eisenberg. For the Faustina II and Etruscan Warrior, however, the parties disputed whether to rescind, and Eisenberg sued, moving for summary judgment on a theory of mutual mistake.
Whether a party may rescind a contract for mutual mistake of fact if the party knew that the fact might not be true at the time the contract was formed.