Text extracted via OCR from the original document. May contain errors from the scanning process.
and you want to know why things seem complicated. . liket he original issue, these are ssimple quesitons that
require a 1 minute conversaiton. . why are they talking to you, alan, brad ada heather. silly but your call
Forwarded message
reevacation@gmail.com" leevacation@gmail.com>
Cc: '
Heather, thank you for your clear email and helpful suggestion. Given the circumstances, I think the approach you outline
is the best way forward. After all, the GP has a duty to insure the art and the method you outline achieves that result. I
recommend that we make the record clear with a GP resolution and a side agreement among the partners setting forth
the arrangement and describing the allocation of the expense (and the rationale).
Alan
Alan S. Halperin I Partner
Paul, Weiss, Rifkind, Wharton & Garrison LLP
1285 Avenue of the Americas I New York, NY 10019-6064
(212) 373-3313 (Direct Phone) 1 (212) 492-0313 (Direct Fax)
Cc: Brad Wechsler <
>; Ada Clapp <
Dear Alan and Jeffrey,
I spoke with Jeffrey Haber about arranging for a new fine arts insurance policy for AP Narrows LP. He said that
it would be extremely difficult to obtain a new policy for AP Narrows because of capacity issues. There are a
number of insurance companies already providing insurance on the Black collection at 760 Park Avenue and
none of them, in Jeffrey's opinion, would be willing to take on primary liability for AP Narrows' art.
Jeffrey Haber said that he had a very difficult time finding insurance companies willing to provide coverage to
APO I and APO2 last summer, but he finally convinced Travelers to take on the $150 million of primary
coverage and he brought in five other insurance companies to provide the remaining $450 million in excess
coverage. He does not think that Travelers or any of the other companies in the trusts ' insurance "stack" would
be willing to be the primary insurer for AP Narrows. There is also a "stack" of insurance companies providing
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primary and excess coverage to Leon (some of which also provide part of the trusts' insurance), but, again,
Jeffrey does not believe any of these companies would be willing to provide primary coverage for AP Narrows.
Alan, are there alternatives to AP Narrows having its own art insurance that would be acceptable from an estate
planning standpoint?
Brad, Ada and I discussed this situation this afternoon. Would it be possible to have the partners agree
contractually to each continue to maintain insurance on the works that they are contributing to AP Narrows? AP
Narrows would be added as a "Named Insured" on Leon's policy with respect to the art that Leon and Narrows
are contributing to the partnership, and as a Named Insured on the trusts' policy with respect to the art that the
trusts are contributing to the partnership.
Jeffrey Haber said that he would be willing to write a letter for AP Narrows' records describing his decades of
experience in the insurance business and outlining how, in his professional opinion, it would be impractical and
almost impossible for AP Narrows to obtain coverage. This seems like it would help substantiate that AP
Narrows acted in a commercially reasonable manner by not obtaining its own insurance under the circumstances.
I realize that it is quite late in Europe, Alan, so certainly do not expect you to respond this evening.
Best,
Heather
Heather Gray
Elysium Management LLC
445 Park Avenue
Suite 1401
New York, New York 10022
Direct Dial: &&5119a5
Fax: 6465
30
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