Lindholm v. Brant
Supreme Court of Connecticut
925 A.2d 1048 (2007)
Kerstin Lindholm (plaintiff) entrusted her Andy Warhol painting to art dealer Anders Malmberg, reputed to be honest and trustworthy, and at her direction Malmberg loaned it to the Guggenheim Museum, which later released it to Malmberg for transport to Denmark under a policy of releasing paintings only to the true owner. Malmberg then sold the painting to Peter Brant (defendant) without Lindholm's knowledge; Brant, concerned about possible competing claims, hired counsel to conduct a lien search (which revealed none) and negotiate a formal contract warranting Malmberg's good title before purchasing. Lindholm sued Brant, and the trial court found Brant was a buyer in the ordinary course of business under UCC § 2-403(3), taking all Lindholm's rights; she appealed.
Whether, under the Uniform Commercial Code, a merchant entrusted with a good has the power to transfer all the rights of the entruster to a buyer in the ordinary course of business.