Artists Fight Back Over Unpaid Consignment Fees

A pair of contemporary painters, Daniel Um and Nastaran Shahbazi, have taken legal action against a Manhattan gallery called The Hole after the venue allegedly sold their artwork on consignment and withheld nearly $50, 000 in earnings. Between 2024 and 2026 the artists shipped several pieces to the gallery for display, expecting payment once sales were made. They claim that while some money was paid out, the gallery’s own records show a shortfall of $28, 975 for Um and $21, 000 for Shahbazi. The lawsuit says the gallery’s managers repeatedly cited financial trouble as a reason to delay payments, a practice that violates New York law. Under state statutes, proceeds from consigned works must be kept in a separate trust account and cannot be used to cover operating costs.

Um and Shahbazi argue that The Hole mixed the artists’ earnings with its general funds, paying rent and other expenses instead of sending the money to the creators. They accuse the gallery of unjust enrichment, breach of contract, and violating the Arts and Cultural Affairs Law. The artists seek full payment of the owed amounts plus punitive damages, claiming that the gallery has repeatedly promised to pay but failed to do so. This case follows earlier complaints from other artists who say they too were left unpaid by the same gallery amid financial difficulties.

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