Waitt

But Mr. Waitt said the other works offered in return were "not even close in value" to $1.2 million.

Blame Game Over a Rare Buffalo Painting Robert Frank 2011

It was during that meeting at the gallery that Mr. Waitt noticed a painting of a buffalo in a Western landscape.

Blame Game Over a Rare Buffalo Painting Robert Frank 2011

In legal discovery, Mr. Waitt learned that Mr. Peters bought "Buffalo Standing in a River" for $200,000 in 2008.

Blame Game Over a Rare Buffalo Painting Robert Frank 2011

Now, however, Mr. Waitt is embroiled in a lawsuit against Mr. Peters over a $1.2 million purchase that may be worth a fraction of that price.

Blame Game Over a Rare Buffalo Painting Robert Frank 2011

Mr. Waitt sued, claiming breach of contract and negligent misrepresentation.

Blame Game Over a Rare Buffalo Painting Robert Frank 2011

Getty Images Norman Waitt has sued an art dealer over a Western landscape.

Blame Game Over a Rare Buffalo Painting Robert Frank 2011

Over the years, Mr. Peters—a prominent art dealer in New York and Sante Fe—rewarded Mr. Waitt for his business.

Blame Game Over a Rare Buffalo Painting Robert Frank 2011

"You can really get taken in this market," said Mr. Waitt, who left Gateway in 1991 and owns businesses ranging from radio to real-estate.

Blame Game Over a Rare Buffalo Painting Robert Frank 2011

Mr. Waitt exchanged or returned at least four pieces between 1996 and 2008, the two men say.

Blame Game Over a Rare Buffalo Painting Robert Frank 2011

After Mr. Waitt bought the piece, he had his entire collection appraised by Sotheby's, which valued almost all the paintings he bought from Mr. Peters at less than half their purchase prices, Mr. Waitt says.

Blame Game Over a Rare Buffalo Painting Robert Frank 2011