Collection Agency in Bizarre Lawsuit Dispute with Arts Center

The Stamford Center for the Arts lost two sculptures by artist David Hayes, which is unfortunate for two reasons: (1) they’re expensive; and (b) turns out, they’re owned by a collection agency, the Cadle Co., who is now suing the Stamford Center for the Arts.

The saga of the sculpture begins with Betty Rangoon and her husband, Richard.  Richard pledged the two sculptures by Hayes as security for a $1 million debt he owed.  Betty, trying to get the most use out of the sculptures, donated the sculptures to the Stamford Center for the Arts and deducted their $65,000 value on her personal federal income tax returns.

Betty probably shouldn’t have done that.  The sculptures were technically owned by the Cadle Co.  So, in 2003, the Cadle Co. sued Betty alleging the donation violated the agreement Richard had reached with the collection agency regarding the debt.  The suit was settled with the collection agency and the Rangoons agreeing to sell the sculptures and share the proceeds. In turn, the arts center would insure and maintain the sculptures.

And then the Stamford Center for the Arts lost the sculptures.

"The Stamford Center for the Arts doesn't think it did anything wrong, and we will fight their effort to assert that the Stamford Center for the Arts is somehow responsible,” said Michael Cacace, attorney for the arts center.

Attorney Michael Albano of Hartford, who represents the Cadle Co., said there should be no dispute.

"I think the complaint speaks for itself. They lost the sculptures, and they should make good on it," Albano said.