What is the best recourse for return of artwork/back pay/ breach of contract?

This situation occurs quite often. Often, when the gallery goes out of business its creditors seize the consigned art as payment for the gallery's debts. In some states the artist has no practical recourse unless he or she filed a UCC -1 statement at the time the art was consigned (which makes the artist a secured creditor having the right to retake possession of the art). Absent the filing of that statement, the art (typically) goes to whichever creditor is first in line to recover from the gallery.

In California, however, artists are protected by a law that essentially states that consigned art is not subject to seizure by a gallery's creditors. See < http://bit.ly/NLDkY >.

In your situation, there's a decent likelihood that the gallery owner is no longer in possession of your painting. If you do file a lawsuit, therefore, you should cite at least these sections of law and also list as defendants Does One - Three (representing the present possessors of the painting). It is best, of course, to have an attorney either file the lawsuit for you or help you file the small claims action (attorneys are not permitted represent clients in a California small claims court). You should also register the copyright in the painting with the Copyright Office. Visit < copyright.gov > to learn how.

Good luck.