[Steve D]

Unfortunately, I see this case as one where you are now at the dealer's mercy.
Here's a basic rundown as I see it:

1. The auction listing (description) did not match the photos for the lot.
2. You bid on the lot anyway, based on the lot description (disclaimer: I probably would have done the same thing, but I probably would have sent a quick email to the auction house to verify).
3. When you got the lot, you did not verify that you had received what you expected (this is even though you knew there was a discrepancy in the listing) (kind of a case of fool me once, shame on you; fool me twice, shame on me).
4. You sold items from the lot; again, without verifying that the cards were the ones you actually bid on.
5. The auction house then realized their mistake, and contacted you for the lots return.
6. You could not return the lot in its entirety, since you had sold individual cards from it.
7. The auction house decides to let the auction lot stand as shipped.

Now, you have what would seem to be mitigating circumstances, in that concurrently with all of this going on, you were dealing with serious medical issues and surgery. It would be up to the auction house to cut you a break if they deem it appropriate. Unfortunately, I have heard bad things about the auction house involved in this, to include poor customer service, and their not treating their bidders "correctly". I have only had a couple of dealings with them personally, and have had no problems, but both instances were on single-item, inexpensive lots. Suffice to say, the number of stories I've read makes me think twice about dealing with them.

I feel for you and your situation, but the fact that you broke up the lot upon receipt and sold items from it, is, at least to me, defacto acceptance of the lot as is; it does not matter that you did not actually verify it. If the auction house cuts you a break due to your personal circumstances, is entirely up to them; and I do not believe that is in their modus operandi.

Good luck on all fronts.

Edited to add: I tend to agree with Jake's post above mine (#10). Your health is much more important than a few hundred dollars you might lose on these cards. Live to fight another day.

Steve