Quote:
Originally Posted by Aquarian Sports Cards
I think it's more in the nature of an academic discussion. I can't see Leland's fighting this one out, so I basically agree with you.
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Scott,
You're in the auction business also, and thus know better than most the position Leland's is in. Everyone seems to keep talking about this being between Leland's and the auction winner, but what about the consigner? Your consigners enter into a consignment agreement with you, just as I'm assuming Leland's does with their consigners. You technically work for your consigners. So how does a typical AH consignment agreement in the case of a winner bidder that refuses to pay, for whatever reason, work? Does an AH have the ability to just unilaterally decide to cancel the auction with no input or say on the part of the consigner? And if so, is that because it is specifically written into the consignment agreement to protect an AH?
I can fully understand just canceling auctions in cases where someone backs out on paying just a few hundreds/thousands of dollars. The time, effort, and potential legal expense and other costs to go after such a winning bidder can make it totally senseless as you'll end up likely spending more than you'd get if the winner just paid you. But now we're talking $500K, and the further potential loss from a possible change to the football's significance. So if the AH refuses to go after the winning bidder on behalf of the consigner, can the consigner just step in then and go after the reneging auction winner themselves?
Or what about the consigner suing the AH for refusing to go after the auction winner on their behalf then?
According to some attorneys on here, the auction description may be a factor in letting the winning bidder off the hook from going through with the transaction. And assuming it was the AH that was responsible for writing the description, I could understand that maybe giving the consigner even more cause to go after the AH. In which case the consigner could possibly have cause to sue an AH for being harmed by the AH's mistakes as well. Heck, I could even see an attorney for an auction winner in a case like this one with Brady's football, prevailing over an AH because of the item's description, and then immediately turning around and contacting the consigner to offer to do the same for them against the AH. Probably wouldn't be the first time something like that may have happened either.
Will be interested to hear your responses from an AH viewpoint.
Oh, and as for agreeing with others that this thread is possibly just an academic discussion, I would definitely think not. If nothing else, it will help to educate members as to potential issues and problems that may occur were they to sell through an AH. And by examining and discussing the causes of these issues, and how they may end up being resolved, it may also let people better know what questions to ask and what things to look for in an AH's consignment and other agreements. That way a consigner can make a more educated choice in which AH they end up choosing, and hopefully never get stuck in the middle of a situation like the consigner of this Brady football apparently finds themselves in now.
03-16-2022, 04:35 PM
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