New York Court Halts Christie's Jewelry Sale

NEW YORK—A New York State appeals court has ruled that Christie’s must cancel this evening’s sale of 115 heirlooms from the family of jeweler Ralph O. Esmerian, which the house was billing as “the most important collection of period jewels,'' Bloomberg reports.

On April 8, Helen Chaitman, a lawyer for the jeweler, filed an emergency motion to stop the sale, which was engineered by Esmerian creditor Merrill Lynch & Co. According to court papers, Esmerian owes the investment firm $185 million; Merrill declared his loan in default on January 21. The jeweler has objected to what he calls a “commercially reckless'' auction, because he believes it will earn much less than private sales. The auction has a high pre-sale estimate of $34 million.

Despite the ruling, the investment bank hasn't given up on the auction and is appealing. “The appellate court has allowed further proceedings at the lower court,'' said a Merrill spokesman. “We anticipate getting further guidance from Judge Freedman on Tuesday as to whether the auction can move forward.''

Christie's said that it is reviewing the ruling and is hopeful the sale will go on.

Judge Helen Freedman has told both sides that she is trying to schedule a hearing today.