Memory Lane sold cards they didn't have per SCD

[G1911]

Originally Posted by hcv123

I agree that it is unlikely the insurance company would demand or require the auction to run. That said, it IS required for the insured (ML) to provide substantiation of the value of the loss. The insurance company can look for alternative means of valuation and the process becomes a dispute/negotiation which in a best case scenario is settled and a worse case scenario is litigated. Given the rarity of at least some of the cards involved and the conflicting interests in low vs high valuation, there could be some big differences in perceived value between the insurance company and insured party (ML) not to mention the complicating consignor factor. Running the auction gives a pretty hard to argue value basis for all the cards involved.
I don't have a horse in the race, just believe I understand some of why things unfolded the way they did. Once the cards were stolen the only better and "easy" ending would have been for them to have been recovered prior to the end of the auction. When that possibility expired, there was no good way for things to end. Some group (consignors, bidders, ML) was not going to be happy. I do hope that more information is revealed once the case is closed and (hopefully) the cards recovered.

Yes, it is one way to value it - a convenient way for consignors perhaps, but required a fraudulent auction that appears to even be illegal in CA and lying to thousands of people. No even half-way professional insurance company is going to advise doing this - they may accept those values but there is no realistic chance any legitimate insurer demanded, told, or advised to do this.


Since Memory Lane is promising an options on a contingency if they turn up, it appears there is actually a high chance there is no insurance here whatsoever. The insurance company owns recovered goods if they have paid on them, in pretty much any policy covering stolen goods. Memory Lane cannot promise these options deals to bidders if there is an insurance claim paid - the cards would become the property of the insurance company to sell or do with as they please (definitely sell somehow). Perhaps the options are just another lie, but I am surprised the ML fans have tried to go so far with the insurance claims that just makes no sense at all - this is probably the worst route to try and justify it.