Claude Ruiz Picasso v Robyn Thomas

Claude Ruiz Picasso, as the executor of the estate of Pablo Picasso, brought proceedings against Robyn Thomas, the executor of the estate of the late Mr. John Richard Thomas, concerning the ownership of a painting titled "Femme au Chapeau". The dispute arose from an agreement between the deceased Mr. Thomas and Mr. Picasso, whereby Mr. Thomas was entrusted with the painting for the purpose of exhibition and sale. Mr. Picasso's estate alleged that Mr. Thomas had breached the terms of this agreement by failing to return the painting upon demand and by purporting to sell it. The proceedings were heard in the Supreme Court of New South Wales.

The central legal issue before the court was whether Mr. Thomas had acquired good title to the painting, thereby entitling his estate to retain it, or whether the painting remained the property of Mr. Picasso's estate. This required the court to consider the nature of the bailment created by the agreement between Mr. Thomas and Mr. Picasso, and whether Mr. Thomas's actions constituted a conversion of the painting, thereby terminating the bailment and entitling Mr. Picasso's estate to immediate possession. The court also had to determine the validity of any purported sale of the painting by Mr. Thomas.

Justice McDonagh found that the agreement between Mr. Thomas and Mr. Picasso created a bailment for the purpose of exhibition and sale, with the clear intention that ownership would only pass upon a valid sale and payment of the proceeds to Mr. Picasso. The court held that Mr. Thomas's actions in purporting to sell the painting to himself, without the consent of Mr. Picasso and without accounting for the proceeds, constituted a fundamental breach of the bailment agreement and a conversion of the painting. This conversion terminated the bailment and gave Mr. Picasso's estate the right to immediate possession. The court further found that any purported sale by Mr. Thomas was invalid as he did not have good title to convey.

The court ordered that the painting be returned to the estate of Claude Ruiz Picasso.