The descendants of a husband and wife murdered in concentration camps during World War II are suing to regain artwork stolen as spoils of war. Daniel Searle bought Landscape with Smokestacks, a pastel by Edgar Degas, for $850,000 in 1987. Searle has allegedly refused to return the Degas. The plaintiffs allege that Searle took inadequate precutions to ensure that the 1987 seller had clear title to the work.

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK

NICK GOODMAN, SIMON GOODMAN,
AND LILI VERA COLLAS GUTMANN,

Plaintiffs,

-against-

DANIEL C. SEARLE,

Defendant.

96 CIV 5310

COMPLAINT

(DEMAND FOR TRIAL BY JURY)

1. This is an action to recover personal property, for declaratory
relief ant for damages arising from defendant Daniel C. Searle's
("Searle") unlawful detention of a unique piece of art, to wit:
Landscape with Smokestacks, a pastel by Edgar Degas (hereinafter
sometimes referred to as the "Pastel',), which was stolen from the
plaintiffs' ancestors during the Second World War and was
ultimately purchased by Searle in 1987. Plaintiffs Nick and Simon
Goodman, brothers, joined by their aunt, plaintiff Lili Vera Collas
Gutmann (collectively, the "Goodman family"), have recently
located Landscape with Smokestacks after many years of searching
begun by Nick and Simon Goodman's late father, Bernard
Goodman and by plaintiff Lili Vera Collas Gutmann. Prior to the
Second World War and Nazi Germany's occupation of Holland
and France, Landscape with Smokestacks belonged to Friedrich
Bernhard Gutmann and his wife, Louise Gutmann (plaintiffs Nick
and Simon Goodman's grandfather and grandmother and plaintiff
Lili Vera Collas Gutmann's father and mother). Friedrich and
Louise Gutmann had sent the Pastel and other works of art to Paris
for safekeeping prior to Nazi Germany's invasion and occupation
of Holland. Friedrich and Louise Gutmann perished in Nazi
concentration camps and their possessions, including the Pastel,
were taken by Nazi agents and collaborators. After learning that
defendant Searle possesses Landscape with Smokestacks, the
Goodman family, through plaintiff Nick Goodman, demanded the
return of the Pastel. Upon Searle's refusal of this demand, the
Goodman family commenced this lawsuit to seek return of the
Pastel.

PARTIES

2. Plaintiff Nick Goodman is a citizen of the United Kingdom,
residing at 3483 Oak Glen Drive, Hollywood, California 90068.

3. Plaintiff Simon Goodman is a citizen of the United Kingdom,
residing at 215 1/2 South Arnaz Drive, Beverly Hills, California
90211.

4. Plaintiff Lili Vera Collas Gutmann is a citizen of the
Netherlands, residing in Italy at Via Gioberti 52, Florence.

5. Upon information and belief, defendant Daniel C. Searle is a
citizen of the United States, and a domiciliary and a citizen of the
State of Illinois, residing at 33 Woodley Road, Winnetka, Illinois
60093-3749.

JURISDICTIONS

6.This Court has jurisdiction over this action pursuant to 28
U.S.C. 1332.

7.The amount in controversy exceeds the sum or value of $50,000,
exclusive of interest and costs.

8.Under 28 U.S.C. 1391(a), venue lies in the Southern District of
New York, the district in which a substantial part of the events or
omissions giving rise to the claim occurred.

FACTS

9. In the years prior to World War II, Friedrich and Louise
Gutmann, residents of Heemstede, Holland, were the owners of an
extensive estate that included a large art collection and many other
valuable possessions. Beginning in the late 1920s, they purchased
several pieces of what was then regarded as modern art, including
Landscape with Smokestacks, from Paul Cassirer & Co., an art
dealer with galleries or auction houses in Berlin and Amsterdam, or
Helmuth Lutjens, Cassirer's Dutch agent. Landscape with
Smokestacks (also known as Paysage or Paysage ~vec Fumee de
Cheminees), by Edgar Degas, is a pastel over monotype, with a red
signature stamp in the lower left corner.

10. Landscape with Smokestacks is a unique work of art.

11. Landscape with Smokestacks hung in the Guttman's drawing
room in Holland from the time the Gutmanns' acquired it until
about 1939.

12. In or about 1939, Friedrich and Louise Gutmann, fearing for
the safety of their property upon Nazi Germany's possible invasion
and occupation of Holland, sent amongst other works of art, three
impressionist paintings, comprised of Landscape with
Smokestacks, another work by Degas entitled Femme se
Chauffant, and a painting by Pierre Auguste Renoir known as
Appletree in Bloom, to Paul Graupe & Cie. ("Graupe"), an
antiques dealer in Paris, France, for safekeeping.

13. Upon information and belief, Friedrich and Louise Gutmann,
who were of Jewish ancestry, attempted to relocate to Italy in 1943
in order to escape Nazi persecution, but were detained en route to
Italy by German Gestapo forces.

14. Upon information and belief, Friedrich and Louise Gutmann
were both sent to the Theresienstadt camp, where Friedrich was
beaten to death after he refused to sign a document transferring
certain of the family's remaining possessions to the Third Reich.
Louise was then sent to Auschwitz where she died in the gas
chambers.

15. The art collection of Friedrich and Louise Gutmann, including
the three impressionist works sent to Paris, was spoliated by Nazi
agents or collaborators, as were the rest of their possessions.

16. Friedrich and Louise Gutmann were survived by their only
children and heirs, Bernard Goodman and plaintiff Lili Vera Collas
Gutmann.

17. After the end of World War II and the collapse of the Third
Reich, Bernard Goodman and plaintiff Lili Vera Collas Gutmann
commenced efforts to locate and recover their parents' spoliated
possessions, including Landscape with Smokestacks and the rest
of their art collection.

18. Through these efforts, Bernard Goodman and plaintiff Lili
Vera Collas Gutmann reamed in 1945 that Graupe had deposited
the Gutmann paintings, including Landscape with Smokestacks, in
a warehouse in Paris belonging to the firm of Wacker-Bondy.

19. Bernard Goodman and plaintiff Lili Vera Collas Gutmann
contacted Wacker-Bondy in 1945 regarding Landscape with
Smokestacks and the other paintings, but were informed that the
German Einsatzstab Reichsleiter Rosenberg (the "ERR" or
"Rosenberg Action Team"), whose responsibilities included looting
art from families who were identified as Jewish living in Nazi-
occupied areas, had seized everything on deposit at Wacker-Bondy
from the Gutmann collection.

20. Upon learning that the Nazis had seized their family's artwork,
including Landscape with Smokestacks, Apple Tree in Bloom and
Femme se Chauffant, Bernard Goodman and plaintiff Lili Vera
Collas Gutmann notified Dutch, French, British and German
authorities and Interpol in the years immediately following the end
of World War II in an attempt to retrieve their stolen artwork,
including Landscape with Smokestacks.

21. Investigation of the seizures in Paris by the Dutch, French and
German governments determined that the Pastel and the other
artwork the Gutmanns sent to Paris had been stolen by the
Rosenberg Action Team.

22. Bernard Goodman died in 1994, and is survived by his only
children and heirs, plaintiffs Nick and Simon Goodman.

23. Plaintiffs Nick and Simon Goodman with plaintiff Lili Vera
Collas Gutmann, diligently continued the search for the Goodman
family's missing artwork, including Landscape with Smokestacks,
after the death of Bernard Goodman.

24. The Goodman family recently learned of a catalog (the
"Catalog',) entitled Degas Landscapes by Richard Kendall,
published by Yale University Press in association with the
Metropolitan Museum of Art in New York and the Museum of Fine
Arts in Houston in which Landscape with Smokestacks appears.
Through the Catalog, plaintiffs identified defendant Searle as the
current possessor of Landscape with Smokestacks.

25. Upon information and belief, as plaintiffs recently discovered
from documents provided by defendant Searle, Hans Wendland, a
Berlin art dealer and Nazi collaborator who operated in Paris during
the German occupation, acquired possession of Landscape with
Smokestacks after it had been stolen from Wacker-Bondy by the
Rosenberg Action Team.

26. Upon information and belief, as plaintiffs recently discovered
from Searle's documents, Wendland transferred possession of the
painting to Hans Fankhauser in Switzerland.

27. Upon information and belief, as plaintiffs recently discovered
from Searle's documents, Emile Wolf of New York acquired
possession of Landscape with Smokestacks in 1951 from
Fankhauser.

28. Upon information and belief, as plaintiffs recently discovered
from Searle's documents, on July 31, 1987, defendant Searle
acquired possession of Landscape with Smokestacks from Emile
Wolf.

29. Upon information and belief, as plaintiffs recently discovered
from Searle's documents, Searle purchased the Pastel in a
transaction arranged by Margo Pollins Schab, Inc., a New York art
dealer.

30. The Goodman family also recently learned that the Renoir
Appletree in Bloom, one of the paintings sent to Paris with the
Pastel, has changed hands in New York since World War II.

CLAIMS FOR RELIEF

COUNT I

(Action to Recover Personal Property)

31. The Goodman family repeats and incorporates by reference the
allegations set forth in paragraphs 1 through 30, above.

32. On December 5, 1995, the Goodman family, by counsel, sent a
letter to defendant Searle demanding return of Landscape with
Smokestacks.

33. On December 15, 1995, defendant Searle, through counsel,
refused the Goodman family's demand.

34. Defendant Searle claims to be the lawful owner of the Pastel.

35. The Goodman family is, and at all times herein mentioned was,
the lawful owner of Landscape with Smokestacks and has a
superior and exclusive right to immediate possession of the Pastel.

36. Plaintiffs are not aware of the current market value of
Landscape with Smokestacks, but, upon information and belief, as
plaintiffs recently discovered from Searle's documents, defendant
Searle paid Eight Hundred and Fifty Thousand Dollars
($850,000.00) in 1987 to acquire possession of the Pastel.

37. Defendant Searle's acquisition of Landscape with Smokestacks
was without the authority of the true owners, the Goodman family.

38. Defendant Searle's refusal to return Landscape with
Smokestacks on demand was wrongful.

39. Defendant Searle's possession of Landscape with Smokestacks
is wrongful.

40. Defendant Searle's acquisition of Landscape with
Smokestacks, his possession of Landscape with Smokestacks, and
his wrongful refusal to return Landscape with Smokestacks have
caused damages to the Goodman family by depriving them of the
use and enjoyment of the Pastel since 1987, which use and
enjoyment is estimated to have a value in the amount of One
Hundred Thousand Dollars ($100,000.00).

41. At the time of his acquisition, defendant Searle took inadequate
measures to ensure that his seller had good title to Landscape with
Smokestacks.

42. Because Landscape with Smokestacks is a unique work of art,
the harm to the Goodman family cannot be adequately remedied
unless Landscape with Smokestacks is returned to them, with
damages for loss of use and enjoyment during the period of
defendant Searle's possession.

43. Because the Goodman family is the true owner of Landscape
with Smokestacks, and because defendant Searle has no lawful
basis for a claim to ownership or right to possession, Landscape
with Smokestacks must be resumed to the Goodman family.

COUNT II

(Declaratory Judgment)

44. The Goodman family repeats and incorporates by reference the
allegations set forth in paragraphs 1 through 30 and 32 through 43,
above.

45. There is an actual controversy between the parties concerning
right and title to movable property, namely Landscape with
Smokestacks.

46. The Goodman family is entitled- to a declaratory judgment,
pursuant to 28 U.S.C. 2201 and 2202, that the Goodman
family is the true owner of Landscape with Smokestacks and has
superior and exclusive right to immediate possession of Landscape
with Smokestacks. 47. The Goodman family is entitled to a
declaratory judgment pursuant to 28 U.S.C. 2201 and 2202,
that defendant Searle never had any lawful title to, or right to
possess, Landscape with Smokestacks.COUNT
III(Conversion)48. The Goodman family repeats and incorporates
by reference the allegations set forth in paragraphs 1 through 30,
32 through 43, and 45 through 47, above. 49. Defendant Searle
has exercised dominion and control over Landscape with
Smokestacks to the exclusion of and inconsistent with the
Goodman family's rights in and to the Pastel.

50. Defendant Searle's exercise of dominion and control included
taking possession of Landscape with Smokestacks, transporting it
within the United States, and claiming to be the owner of the
Pastel.

51. Defendant Searle's exercise of dominion and control over
Landscape with Smokestacks was without the authority of the true
owners, the Goodman family.

52. The Goodman family is entitled to damages for loss of use of
Landscape with Smokestacks during the period after defendant
Searle acquired the Pastel, which use is estimated to have a value in
the amount of One Hundred Thousand Dollars ($100,000.00).

53. In the event Landscape with Smokestacks has been damaged in
any way since being acquired by defendant Searle, the Goodman
family would also be entitled to be compensated for such damage.

WHEREFORE, the Goodman family prays that this Court take the
following action and grant the following relief:

a. Declare that the Goodman family is the owner of Landscape with
Smokestacks with superior and immediate rights to exclusive
possession of the Pastel;

b. Declare that defendant Searle never had any lawful title to, or the
right to possess, Landscape with Smokestacks;

c. Award the Goodman family exclusive possession of Landscape
with Smokestacks;

d. Award the Goodman family their actual damages from defendant
Searle in an amount to be determined at trial, to compensate
plaintiffs for loss of use of the Pastel and as compensation for any
damage to the Pastel while it was in defendant Searle's possession;

e. Upon final judgment, award the Goodman family prejudgment
and postjudgment interest on any damages awarded from defendant
Searle as allowed by law;

f. Award the Goodman family their costs of court, expenses and
reasonable attorneys' fees; and

g. Award the Goodman family such other and further relief to
which they may be entitled at law or in equity.

DATED: New York, New York

July 17, 1996

ANDREWS & KURTH L.L.P.

A Registered Limited Liability Partnership

By: /s/

LYNNE M. FISCHMAN UNIMAN (LFU6750)

425 Lexington Avenue New York, New York
10017 Tel. (212) 850-2800

and

THOMAS R. KLINE (TK4960)
A. LINDSEY CRAWFORD 1701

Pennsylvania Avenue, N.W. Suite
200 Washington, D.C. 20006 Tel.
(202) 662-2700