Image of Ronald Perelman from Wikipedia
A New York judge has denied billionaire Ronald Perelman’s $400 million insurance claim for five artworks he said were damaged in a 2018 fire at his East Hampton estate. Justice Joel M. Cohen ruled there was no visible or provable damage to the pieces—by Warhol, Ruscha, and Twombly—and that they retained their value.
Perelman argued the fire caused unseen damage like humidity and soot exposure that dulled the works’ vibrancy. Insurers, including Lloyd’s, Chubb, and AIG, countered that the claim was financially motivated, especially following Perelman's financial struggles after Revlon's collapse.
The case, which included expert testimony and nearly 2,000 court filings, raised questions about how art damage is defined. Cohen stopped short of calling Perelman's actions fraudulent, but sided with insurers, stating the artworks remained visually intact and marketable. Ronald Perelman's $400 million insurance claim appears less about damaged art and more like an attempt to cash in amid financial trouble, using his art collection as a pawn for leverage.
J.Larson
