Ex-partner names his price in battle over share of art millions

ART is what brought them together, and now art is ripping them apart. Fourteen years ago, Geoffrey Smith, then a 20-year-old university student, was introduced to Robert Gould, a 34-year-old gallery owner, at a Sotheby's cocktail party in the chichi Melbourne suburb of Armadale.

By InvestSMART · 27 Apr 2012

By InvestSMART ·
27 Apr 2012

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That night, the two went out for dinner, talked about art and soon after began a relationship. But now, Mr Smith, a former curator at the National Gallery of Victoria who has since risen to Sotheby's chairman, is taking his ex-partner to court.

Yesterday, the Supreme Court of Victoria heard that Mr Smith wants half of the $30 million to $50 million fortune the couple accumulated during their relationship which, according to Mr Smith, includes about 1800 artworks by celebrated Australian and international artists.

"We do not ask for anything more than a 50 per cent contribution but we say that on the evidence . . . the reasonable apportionment is in the range of 40 to 50 per cent to the plaintiff," Mr Smith's counsel, Richard Kendall, QC, told the court.

Upon hearing these words, Mr Gould shook his head and his face turned a deep shade of red.

Mr Smith is suing his former partner in a case that was launched six years ago but only came to court this week. He is seeking at least four times more than Mr Gould allegedly offered him eight years ago, when he provided about $3.89 million of assets, including setting up Mr Smith in a South Yarra flat, giving him a BMW, five paintings, and waiving a $91,131 debt. Mr Smith denies an agreement was ever made.

"We say there was no such settlement . . . Certainly no terms were signed," Mr Kendall said.

Mr Smith claims the couple's assets at the time of their separation in June 2004 included at least $6 million in real estate, $11.6 million in art kept at the couple's South Yarra home, $8.3 million in art kept at Gould Galleries, and an extra $4.6 million in other assets, including cars, superannuation, bank accounts and a Sydney property.

"As we have pointed out, the figure . . . may go as high as over $50 million," Mr Kendall said.

For the past two days, Mr Kendall has been arguing that Mr Smith's expertise on Australian and international art was instrumental in building Mr Gould's business, South Yarra's Gould Galleries, and thus fundamental to the couple's wealth.

Yesterday, Mr Smith took to the witness box and spoke about his achievements at the NGV.

The case resumes today.

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Frequently Asked Questions about this Article…

What is the legal battle over art between Geoffrey Smith and Robert Gould about?

The dispute is a court case in the Supreme Court of Victoria in which Geoffrey Smith is suing his former partner, Robert Gould, for a share of the wealth they accumulated during their relationship. Smith says that the joint assets—largely art and property—are worth between $30 million and $50 million and that he is entitled to a substantial portion of that wealth.

How large is the art collection and what valuation range is being claimed in the case?

Smith’s legal team says the couple’s fortune may be in the $30 million to $50 million range, possibly over $50 million. They claim the collection includes about 1,800 artworks and specific asset figures at separation: at least $6 million in real estate, $11.6 million in art at the couple’s South Yarra home, $8.3 million in art at Gould Galleries, plus roughly $4.6 million in other assets (cars, superannuation, bank accounts and a Sydney property).

What share of the art and assets is Geoffrey Smith seeking in the court case?

Smith is seeking half of the disputed fortune. His counsel argued in court that a reasonable apportionment based on the evidence would be in the range of 40% to 50% in favour of the plaintiff (Smith).

Was there an earlier settlement offer from Robert Gould and what did it include?

According to the court hearing, about eight years ago Gould allegedly offered Smith roughly $3.89 million in assets. That package reportedly included setting Smith up in a South Yarra flat, a BMW, five paintings and the waiver of a $91,131 debt. Smith denies that any binding settlement was ever agreed.

What arguments has Smith’s legal team used about his role in building the art business?

Smith’s counsel has argued that his expertise on Australian and international art—gained as a former National Gallery of Victoria curator and later as Sotheby’s chairman—was instrumental in building Gould’s business, South Yarra’s Gould Galleries. Smith also gave evidence in court about his achievements at the NGV.

Where were the artworks and other assets stored according to the case details?

Court documents state that significant portions of the art were kept at two locations: the couple’s South Yarra home (about $11.6 million worth) and Gould Galleries in South Yarra (about $8.3 million worth). Other assets cited include real estate, cars, superannuation, bank accounts and a Sydney property.

What is the timeline of the lawsuit and what is the current court status?

The case was launched six years ago but only came to court this week. Geoffrey Smith gave evidence on the witness box yesterday, and the hearing was reported to resume today in the Supreme Court of Victoria.

How did Robert Gould react in court when the apportionment claim was presented?

When Smith’s counsel argued that a 40%–50% apportionment to the plaintiff was reasonable, the article reports that Robert Gould shook his head and his face turned a deep shade of red in response.