A US District Court for the Northern District of California jury has found Christie’s liable for $8.5 million in damages claimed by CNET founder Halsey Minor, who sued the New York auction house, claiming fraud and breach of contract after Christie’s held seven pieces of art owned by Minor as the art market spiraled down beginning in late 2008.

In court documents, lawyers for Minor contended that their client consigned seven original Richard Prince artworks to Christie’s Haunch of Venison gallery in early May 2008. The consignment period was to have run May 8′2 so that the gallery could show them to a single potential buyer in London. During this period, the complaint charges, a Christie’s employee falsely represented to Minor that the works had been sold, but after some time, retracted that statement and advised Minor that the artworks had not been sold. Minor requested that the gallery arrange to have the artworks transferred to Christie’s in New York City to be reconsigned, but Christie’s thereafter refused to return them, holding on to them as leverage against $12 million it said Minor owed in other purchases at auction.

Finally, in November 2008, the artworks were returned to Minor, but by that time the artworks, valued at approximately $25 million, “had declined in value precipitously,” according to the complaint.

In finding in favor of Minor, the court said that Christie’s had no right to hold onto the artwork as leverage to collect on an unrelated transaction. Witnesses called by Minor’s lawyers, including New York City art dealer Barbara Gladstone, who represented Prince for several decades, offered their expert analysis to support Minor’s contention that his Prince works had lost value during the seven months that they were in Christie’s hands. Untitled (Cowboy) was cited as an example, having been estimated at about $4 million at the art market’s peak in August 2008, but sold five months later for only $1.5 million.

Christie’s was recently granted a stay of execution of the judgment, claiming that Minor was already seeking prejudgment interest on the award, that other parties †specifically, Sotheby’s and the California taxing authority, which lists Minor as its biggest delinquent taxpayer †have claimed entitlement to the judgment, and that should Christie’s prevail in an appeal, it would not be able to recover any money paid to Minor.

In a counterclaim brought by Christie’s for Minor’s unpaid auction bills, the judge found Minor liable to Christie’s for breach of contract to the tune of $1.4 million. “We are gratified by the jury’s verdict in Christie’s favor on its claims,” said a spokesperson for the firm. “This verdict goes a long way toward recognizing the integrity of the auction process. In regards to the other claims, Christie’s has appealed the verdict.”