Castillo v. G&M Realty L.P.
950 F.3d 155
2d Cir.2020Background:
- 5Pointz: a Long Island City warehouse complex curated by aerosol artist Jonathan Cohen where hundreds-to-thousands of aerosol works (some short‑lived, some long‑standing) were painted and publicly displayed.
- Wolkoff, the property owner/developer, sought municipal approvals to demolish 5Pointz and build condos; artists sought landmark status and tried to buy the site without success.
- Plaintiffs sued under the Visual Artists Rights Act (VARA) to prevent destruction; after a TRO and a denied preliminary injunction, Wolkoff barred artists and ordered workers to whitewash the murals overnight.
- At bench/advisory‑jury trial the court found 45 works had achieved "recognized stature," that Wolkoff willfully destroyed them, and declined to award actual damages because market value could not be reliably fixed.
- The district court awarded maximum statutory damages—$150,000 per work—for a total of $6.75 million; Wolkoff appealed.
- The Second Circuit affirmed: temporary street art may attain "recognized stature," the 5Pointz works qualified, the destruction was willful, and the statutory award was not an abuse of discretion.
Issues:
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Can temporary artwork achieve "recognized stature" under VARA? | Yes — recognition by the art community, not permanence, controls. | No — temporary/transitory works cannot meet the statute's stature requirement. | Temporary works can attain recognized stature; permanence is not a statutory prerequisite. |
| Did the 5Pointz works have recognized stature? | Yes — expert testimony, Cohen's curation, media attention, and site prominence established recognition for many works. | No — much work was temporary, some artists lacked sales history, expert testimony was based on images or post‑destruction. | The district court's factual finding that 45 works achieved recognized stature was not clearly erroneous. |
| Was the destruction willful (warranting enhanced statutory damages)? | Yes — Wolkoff knew of VARA claims, declined the 90‑day notice/removal option, and destroyed the works deliberately. | No — whitewashing was to prevent disorder or was compelled by demolition urgency. | Willfulness was supported by record; court found deliberate, knowing violation. |
| Was the $150,000 per‑work statutory award an abuse of discretion? | High statutory damages appropriate to punish, deter, and vindicate VARA given willfulness and conduct. | Excessive; actual damages were not awarded, and statutory maximum is disproportionate. | No abuse of discretion: court applied relevant factors and reasonably imposed maximum statutory damages. |
Key Cases Cited
- Carter v. Helmsley-Spear, Inc., 71 F.3d 77 (2d Cir. 1995) (articulates VARA's moral‑rights framework, including rights of attribution and integrity)
- Bleistein v. Donaldson Lithographing Co., 188 U.S. 239 (U.S. 1903) (warning against courts acting as final judges of artistic worth)
- Martin v. City of Indianapolis, 192 F.3d 608 (7th Cir. 1999) (recognition that community acknowledgment informs "recognized stature")
- Pollara v. Seymour, 344 F.3d 265 (2d Cir. 2003) (caution in assessing artistic value and recognition)
- Cartoon Network LP, LLLP v. CSC Holdings, Inc., 536 F.3d 121 (2d Cir. 2008) (discusses "fixed" requirement and transitory duration under copyright)
- Bryant v. Media Right Prods., Inc., 603 F.3d 135 (2d Cir. 2010) (standard for willfulness and review of statutory damages)
- Klipsch Grp., Inc. v. ePRO E-Commerce Ltd., 880 F.3d 620 (2d Cir. 2018) (standards for reviewing statutory damages for abuse of discretion)
- United States v. U.S. Gypsum Co., 333 U.S. 364 (U.S. 1948) (defines "clear error" standard for factual findings)
