The disastrous move into non-fungible tokens and other digital arts of recent years has helped reinforce the value of real-world art and collectibles. Yet, as the global market expands, collectors and shippers can find themselves at odds over cost and the process of delivery.

Read on to help settle any dispute without getting into unseemly arguments or costly legal disputes.

The Risks of Art Shipping and Storage

The world of national and international art shipping is a critical part of the overall art market. The logistics side of the fine art industry is worth $3.2 billion alone and is expected to approach $5 billion by 2032.

From fine art and large installations to classic automobiles and wristwatches, these are not things that anyone should rely on a typical courier to deliver to the new owners, transferring them between exhibitions, or moving to deep storage.

Experts in the field like Fine Art Shippers have decades of experience, working with museums, dealers, and customers who find themselves in possession of a piece of fine art, be it a miniature triptych, a historic vase, or a modern installation.

However, while all parties take the greatest care with fine art, there are always risks, from clumsy or accidental to malicious.

When Things Go Wrong with Fine Art

As with any storage and transportation operation, there are many problems that can occur. On the move, all vehicles are at risk of accidents, packages can shift in transit, and so on. In storage, there’s a risk of warehouse fires, floods, and other environmental damage. And, wherever something expensive is kept, there’s the inevitable risk of theft, either planned or opportunistic.

The fine art industry is used to these risks and mitigates them to the maximum extent possible. Cutting-edge security and camera systems and storage facilities equipped with halon fire suppression to avoid water damage are just a few examples.

However, in art, as with any business, there can be unforeseen circumstances, and things can simply go wrong. While the industry is used to working hard to resolve and compensate when issues like damage, loss, or theft arise, if the customer is not satisfied, business relationships can come under scrutiny.

When Art Shippers Can’t Resolve Problems Directly

Not all art shipment issues can be resolved amicably, and not all are for huge sums of money. Typical issues include:

• The cost of storage or shipment rising sharply due to unexpected events.
• Damage occurring during shipping or storage.
• Physical damage due to the packaging or improper handling.
• Theft or fraud relating to fine art.

As the customer expects their fine art to turn up on time and in perfect condition, they are rarely satisfied if any of the above issues occur. In some cases, an investigation may reveal a cause that insurance will cover, while in some cases, both parties may feel the need for mediation or arbitration to establish fault and a suitable level of recompense. Approaching an ombudsman or arbitration service is one way to resolve it.

If the issue is relatively minor, then a rapid solution is to take the case to a small claims court. Each state and most municipal areas have their own, with a basic set of rules.

In California, for example, cases are usually seen within two months. Cases only cost up to $100 to bring and involve an independent judge dealing directly with the complainant and defendant to come up with a binding solution.

That can be the customer seeking redress from a shipper, or a shipper seeking payment from a customer who believes they have a reason not to pay. Rather than drag things out, a small claim can provide a fast-and-low-cost solution that is legally binding.

Individuals can sue for up to $12,500 (this varies by state, with a $10,000 limit in New York), and the details can vary, but any small claims court can provide a fast and efficient way to resolve damage or loss relating to the smaller end of the fine art market.

In the digital world of fine art, photography copyright has proven a thorny issue, with small claims courts handling a growing number of cases. As art continues to evolve, small claims courts will see more action, and while the high-profile art cases in major courts around the world will grab the headlines, solving problems quietly and efficiently will be useful for all concerned.