Liz Taylor gem falsely billed as royal artifact: suit

CHRISTIE’S auction house botched the sale of Elizabeth Taylor’s diamond ring after it expressed “doubts” about whether it came from Indian royalty — but that didn’t stop them from claiming the rock had belonged to a shah, according to a lawsuit filed by the actress’ trust.

Christie’s was “entrusted with the task of selling some of Ms. Taylor’s most prized and valuable possessions” after her death in 2011, the suit, filed Thursday in Manhattan Supreme Court, says. Christie’s “failed to abide by its contractual obligations ... and blatantly disregarded its fiduciary duties to the trust” by bungling the sale, the trust claims.

The auction house had demanded the trust return $8 million from that sale after the winning bidder wanted his money back. Taylor’s trust said Christie’s tried to “strong-arm” them into returning money from the diamond’s sale by refusing to pay $2.9 million from the auction of a Bulgari ring.

The trust had sued Christie’s in 2015, then agreed to stop the litigation because both sides decided to pursue mediation. After mediation talks broke down, the trust filed suit again.

“Both parties believe the other owes them money as a result of the auction. We have been discussing this matter for some time,” Christie’s said in a statement. Lawyers for the trust declined comment.

The diamond’s provenance remains a matter of debate. The trust says the problem stems from Christie’s description of her “Taj Mahal” diamond, which was purchased from Cartier and given to Taylor by her husband, Richard Burton, for her 40th birthday.

The suit says Christie’s reps went on TV and “despite Christie’s doubts as to the diamond’s age and provenance — described the diamond as having belonged to Shah Jahan during the Mughal period,” the suit says. Shah Jahan was the Indian emperor who built the Taj Mahal.

A buyer ultimately plunked down $8.8 million for the diamond, of which Taylor’s trust got $7.8 million. Several months later, the buyer, who has remained anonymous, demanded the auction house cancel the sale and return the money.