Facing Allegations, Company Accused of Overseeing Litigation for Actedly Stolen Artwork
In an intriguing turn of events, the heir to the late Palestinian businessman Uthman Khatib, Prince Castro Ben Leon, is embroiled in a legal dispute with the litigation funder LitFin Capital over 135 Russian avant-garde paintings worth an estimated $323 million[1]. These artworks, which include pieces by renowned artists such as El Lissitzky, Kazimir Malevich, and Wassily Kandinsky, were originally held by the Khatib family before being allegedly seized by LitFin Capital's investor, Mozes Frisch, in 2019[1].
The paintings, which were held by ArtAnalysis on Frisch's behalf, were returned to the family following a ruling by a Paris court in January 2022[1]. Initially, LitFin Capital supported the Khatib family's efforts to reclaim the artworks. However, the dispute escalated as Prince Castro Ben Leon accused LitFin of breaching the funding contract and attempting to diminish the family's role in the litigation[2].
Details from LitFin's side remain limited, with their managing director declining to comment extensively on the matter[1]. Nevertheless, it is known that LitFin started financing the Khatibs' litigation at the end of 2023 and agreed to cover a total of almost $10 million[1]. They also agreed to pay the $2.3 million in unpaid fees to Dentons, the law firm hired by LitFin, only if the new conditions were met[1].
Prince Castro Ben Leon has also accused LitFin of violating their funding agreement in a private case before a German arbitrator in Frankfurt, Germany[1]. He further claims that LitFin refused to pay for further legal costs in late 2024, having spent $4.3 million on the Khatibs' claims up until that point[1].
The Prague-based litigation funder LitFin Capital specializes in antitrust cases, insolvency, and arbitration, with a portfolio worth $5.8 billion in claim value across more than 25 major international disputes[1]. The Khatibs previously praised LitFin for their help in recovering the stolen paintings[1]. However, the recent turn of events has cast a shadow over their relationship.
The ongoing legal dispute between Prince Castro Ben Leon and LitFin Capital serves as a reminder of the complexities and potential pitfalls in the world of art litigation, where valuable pieces can be at the centre of contentious disputes and allegations of theft and contract breaches.
[1] Source: The Art Newspaper [2] Source: The Guardian
- Despite initially supporting the Khatib family in reclaiming the Russian avant-garde paintings, the modern art collector, Prince Castro Ben Leon, accused LitFin Capital of breaching the funding contract and attempting to diminish the family's role in the litigation.
- As the dispute between Prince Castro Ben Leon and LitFin Capital continues, the sports of art litigation illustrates its complexities and potential pitfalls, with valuable paintings like those by El Lissitzky, Kazimir Malevich, and Wassily Kandinsky often at the center of allegations of theft and contract breaches.
