Gallery (LLC) hasn't paid me for sold art. Can I sue owners for fraud?
I had original works and prints in a gallery and the owner claims he couldn't pay me promptly because the money was tied up somewhere else. Are galleries supposed to hold funds received from artwork sales in escrow, or can they use my portion of sales in their general operating fund, so that if they run short I'm out of luck? The gallery wasn't doing great with high overhead and partially supported by an investor and subsequently closed. However, I suspect the owner was paying himself too much and that's how they ran out of money. If galleries are supposed to separate artists' percentages from general profit and are not at liberty to spend that money, it would constitute fraud, and I might be able to still sue in small claims despite the LLC.