ARTFEED — Contemporary Art Intelligence

New York gallery The Hole sued by artists for $50,000 in unpaid consignment sales

market-auction · 2026-07-22

Artists Daniel Um and Nastaran Shahbazi have initiated a lawsuit against The Hole, a New York gallery, seeking around $50,000 from consignment sales conducted between 2024 and 2026. The legal action, lodged in Manhattan Supreme Court on July 16, specifies that Um is owed $28,975 and Shahbazi $21,000, noting that some payments have been made. The artists accuse the gallery of improperly using funds for expenses, which they claim breaches New York law. Their complaint cites unjust enrichment and breach of contract. Established in 2010 by Kathy Grayson, The Hole expanded to Tribeca in 2021 and West Hollywood in 2022 but encountered financial difficulties after the market downturn in 2023, resulting in the closure of its LA branch and disputes over unpaid rent.

Key facts

  • Daniel Um and Nastaran Shahbazi sue The Hole for $50,000 in unpaid consignment sales
  • Lawsuit filed in Manhattan Supreme Court on July 16
  • $28,975 owed to Um, $21,000 to Shahbazi
  • Sales occurred between 2024 and 2026
  • Gallery allegedly used proceeds for rent and expenses, violating New York consignment law
  • The Hole founded in 2010 by Kathy Grayson, former Deitch Projects director
  • Gallery closed Los Angeles location in 2023 due to market downturn
  • Landlords filed suits in 2025 for over $120,000 in Tribeca and $60,000 in Bowery back rent

Entities

Artists

  • Daniel Um
  • Nastaran Shahbazi
  • Kathy Grayson

Institutions

  • The Hole
  • Deitch Projects
  • The Art Newspaper
  • Manhattan Supreme Court
  • The Hole Gallery
  • Hyperallergic

Locations

  • New York City
  • Manhattan
  • Tribeca
  • Bowery
  • West Hollywood
  • Los Angeles
  • California
  • 86 Walker Street
  • Brooklyn
  • Paris

Sources