Theseus’ Paradox – Rebodies, Replicas & Tampered Numbers; an Automotive Identity Crisis
Greek historian and writer, Plutarch posed a question, over two thousand years ago, that has continued to confound philosophers. “If the ship on which Theseus sailed has been so heavily repaired and nearly every part replaced, is it still the same ship — and, if not, at what point did it stop being the same ship?” This same question can be posed differently and more succinctly; if one has an ax and replaces the handle and the head does he still have the same ax?
This parable clearly presents a paradox that we collectors, restorers and enthusiasts of vintage and antique vehicles can well relate to. At what point do our “restorations” become replicas of what the original is thought to have looked like?
Let us look for a moment at a fairly straightforward restoration of an otherwise solid car. If a few body panels are replaced and others repaired and the drivetrain and chassis is otherwise original I think we can all agree that we have simply restored or rehabilitated the car; the majority remaining untouched and original.
But take the situation where you replace the body but not the frame. What about the situation where the frame and the body have been replaced? What about just the frame? Does the authenticity of the engine change your opinion? At some point the original car ceases to exist; its identity is destroyed and the resultant vehicle is a replica of what the original may have looked like. True, to even the trained eye, a complete replica may well be indistinguishable from the original but it is clearly not the original.
As illustrated above, Theseus’ paradox continues to confound us in our hobby. Cars today are being restored using many reproduction parts and it is unfortunately not uncommon to find that many of the rare cars have had their bodies, frames or had major components such as engines, transmissions or interiors replaced. Other concerns regarding rebodied vehicles can be found in the article Rebodied Cars … what to do?.
Additionally, the removal and replacement of VIN and serial numbers can create an equally sticky situation Many laws have been enacted to protect the integrity of the VIN. Pursuant to 18 U.S.C. § 511, the alteration of a VIN, could be a federal criminal offense. Further, pursuant to 18 U.S.C. § 2321 whoever buys, receives, possesses, or obtains control of, with intent to sell or otherwise dispose of, a motor vehicle or motor vehicle part, knowing that an identification number for such motor vehicle or part has been removed, obliterated, tampered with, or altered, could be fined or imprisoned for up to ten years. Similarly, Pennsylvania’s statutes also address this matter. Specifically, 18 Pa. C.S.A. § 7703 states that a person who alters, counterfeits, defaces, destroys, disguises, falsifies, forges, obliterates or removes a vehicle identification number with the intent to conceal or misrepresent the identity or prevent the identification of a motor vehicle or motor vehicle part commits a felony of the third degree and, upon conviction, shall be sentenced to imprisonment for not more than seven years or a fine of not more than $50,000, or both. Further, and most concerning is that pursuant to 18 Pa. C.S.A. § 7704 any person who purchases, receives, disposes, sells, transfers or possesses a motor vehicle or motor vehicle part with knowledge that the vehicle identification number of the motor vehicle or motor vehicle part has been altered, counterfeited, defaced, destroyed, disguised, falsified, forged, obliterated or removed with the intent to conceal or misrepresent the identity or prevent the identification of a motor vehicle or motor vehicle part commits a felony of the third degree and, upon conviction, shall be sentenced to imprisonment for not more than seven years or a fine of not more than $50,000, or both. Moreover consider, especially with the case of restamped engines that, in Pennsylvania, it is illegal knowingly buy, or sell an automotive part from which the manufacturer’s name plate, serial number or any other distinguishing number or identification mark has been removed, defaced, covered, altered or destroyed unless instructed or done by the manufacturer. 18 Pa.C.S.A. § 4104.
Often times Bryan W. Shook, Esquire, through his law firm Vintage Car Law, is contacted concerning misrepresentation of vehicles that have been rebodied or otherwise replicated to appear one way when they were not actually produced in that configuration. There is well-settled Pennsylvania case law which holds that “the deliberate nondisclosure of a material fact is the same as culpable misrepresentation. Even innocent misrepresentations are actionable if they relate to matters material to the transaction involved; while, if the misrepresentation is made knowingly … materiality is not a requisite to the action…. A misrepresentation is material when it is of such a character that if it had not been made, the agreement would not have been entered into.” McClellan v. HMO of PA, 604 A.2d 1053, 1060 (citations omitted).
In closing, if the car has been substantially modified during the restoration (i.e. rebuilt using all non-original parts, a new body, frame, engine, etc. )this information must be disclosed prior to the sale of the vehicle to the new owner. Failure to do so could create legal liability. The use of half-truths and crafty expressions of terms could create even further liability.
Attorney Bryan W. Shook is not only a devoted automotive enthusiast, but is also an experience litigator who devotes a large portion of his law practice to helping other collectors and hobbyists understand today’s market and protect their automotive investments. Attorney Bryan W. Shook is a seasoned automotive collector and restorer and as such brings real world experience and firsthand knowledge to the table for his clients throughout the world. Although Bryan Shook is headquartered in central Pennsylvania (close proximity to Carlisle and Hershey), Attorney Bryan Shook is available anywhere for consultation, advice, and information, most times, on as short as a day’s notice. If you’d like more information about this topic or would like to speak with Attorney Bryan W. Shook please email him at BShook@shooklegal or by phone at 717-884-9010. More information can be found at Http://www.vintagecarlaw.com.
Original Dealer Data Availible from NCRS
http://www.chevymuscledocs.com is now live. With permission granted by the General Motors Heritage Center, the National Corvette Restorers Society (NCRS) is now offering owners of 1965 through 1972 Chevrolet Camaro, Nova and Chevelle the opportunity to discover the exact date that their car was built (i.e. the cars birthday) and the dealer to which it was originally delivered. This is not necessarily the selling dealer as dealer trades were common in the 1960s. The NCRS is hopeful that the release of this information will lead to owners discovering new information and history regarding their cars. This is a great thing for the hobby. The NCRS and the GM Heritage Center should be applauded for their efforts in presenting and opening this information to the hobby.
Attorney Bryan W. Shook is not only a devoted automotive enthusiast, but is also an experience litigator who devotes a large portion of his law practice to helping other collectors and hobbyists understand today’s market and protect their automotive investments. Attorney Bryan W. Shook is a seasoned automotive collector and restorer and as such brings real world experience and firsthand knowledge to the table for his clients throughout the world. Although Bryan Shook is headquartered in central Pennsylvania (close proximity to Carlisle and Hershey), Attorney Bryan Shook is available anywhere for consultation, advice, and information, most times, on as short as a day’s notice. If you’d like more information about this topic or would like to speak with Attorney Bryan W. Shook please email him at BShook@shooklegal.com or by phone at 717-884-9010. More information can be found at Http://www.vintagecarlaw.com.
Rebodied Cars … what to do …
Rebodies:
What’s the big deal???
(By: Bryan W. Shook, Esquire)
717-884-9010
I’ve been getting quite a few calls lately seeking information on re-bodied vehicles. The term “rebody” is a term of art used throughout our hobby to denote a vehicle whose original factory body has been replaced with another “donor” body. The donor body is then given the original body’s VIN, serial number, data card, trim tag, cowl tag, etc. and then usually and most unfortunately sold to an unsuspecting buyer as the original, real deal automobile. This problem is complicated when the rebodied car is an “air car” which did not exist prior to the rebody. Specifically what happens is someone dreams up a car or has the paperwork from a desirable car and makes it from “thin air” using the donor body as the starting point. All of a sudden, the car has pedigree, provenance and history if the builder can dream up a good enough story. This is problematic as you can plainly see.
There are several legal issues when it comes to a rebodied automobile. The most important issue is whether or not the rebody was disclosed to you when you purchased the vehicle. If the rebody was not disclosed to you how can it be said you negotiated with the seller on equal footing. Another issue comes from the fact that rarely are rebodys done properly. Were the police notified of the body replacement as required under some state laws? Did the seller give you two Certificates of Titles? (Remember the best bodies come from good cars and in today’s day and age, good cars get restored … was the body stolen and the subject vehicle the product of a “chop shop”) Did the seller give you photographs of the original body to evidence the condition of the original body? Do you have confirmation that the original body has been destroyed? (This is usually where the State Police come in as this is where the stories start about two cars registered under the same VIN)
Without the safeguards outlined above, you can never been shore that the vehicle you purchased truly belongs to you. Under the law you would have a breach of the warranty of title claim if any third party were to ever come after you claiming you own the body to their car. The problem is that if you know the car has been rebodied and you can’t provide the above information to a new purchaser you could be just as liable as the seller who sold the car to you should you not disclose what you know to a prospective purchaser.
If you have a rebodied car or think you do, this is a serious matter. Rebodied cars can be nearly unsaleable and always have questions. There was way to rectify the situation and there are ways to unwind the transaction which unknowingly left you with the rebody. In any event, please call me and we can discuss your options and to what extent your car may have been rebodied.
Attorney Bryan W. Shook is not only a devoted automotive enthusiast, but is also an experience litigator who devotes a large portion of his law practice to helping other collectors and hobbyists understand today’s market and protect their automotive investments. Attorney Bryan W. Shook is a seasoned automotive collector and restorer and as such brings real world experience and firsthand knowledge to the table for his clients throughout the world. Although Bryan Shook is headquartered in Camp Hill, Pennsylvania (close proximity to Carlisle and Hershey), Attorney Bryan Shook is available anywhere for consultation, advice, and information, most times, on as short as a day’s notice. If you’d like more information about this topic or would like to speak with Attorney Bryan W. Shook please email him at bshook@shooklegal.com or by phone at 717-884-9010. More information can be found at Http://www.vintagecarlaw.com.
Bid with Knowledge; Buy with Confidence – Vintage Car Law
The Sincere Definition of Numbers Matching
Numbers Matching: From a Legal Standpoint
By: Bryan W. Shook, Esquire
Attorney-at-Law
BShook@shooklegal.com
A seller, an auction house, a broker, etc., all have express duties to not mislead buyers. It is the presentation that entices and induces a prospective buyer to make an offer or bid on a car. Often included within this presentation is the phrase “numbers matching”. Rarely in any field does a single term mean so much; in the field of car collecting, the term “numbers matching” means everything; or does it?
The phrase “numbers matching” was coined an untold number of years ago to describe a vehicle which retained its original driveline (i.e. the driveline that was installed into the vehicle during its initial assembly at its manufacturer’s plant). Specifically and most important in this definition is the engine; as this is the single most important aspect of a vehicle’s originality. There are some in the hobby, however that would have you believe that the phrase “numbers matching” has parted ways with its original and understood definition. These individuals would have you believe that the phrase “numbers matching” means that the driveline, has numbers appearing on its components, that look as though they could have been placed on there during the initial assembly process on the manufacturer’s line. This is where the issue with restamped engines and transmissions becomes ever apparent.
This disingenuous play on words is polluting our hobby.
Numbers Matching means ORIGINAL; the phrase and the meaning of “numbers matching” have never parted company. Numbers matching still means, as it always has, that the engine, transmission and rear axle are original to that particular vehicle. For the phrase to have any other meaning would render it flawed and unnecessary. The use of the phrase “numbers matching” in a disingenuous fashion opens the seller to a high level of legal exposure. The buyer who learns after he purchases the vehicle that the vehicle, is not “as advertised”, has the right to revoke his acceptance of the vehicle and enjoys many protections that come along with legal revocation. For example, these protections could include a statutorily created security interest in the vehicle up to the amount paid for the vehicle, plus certain expenses and other damages.
Any misleading use of the phrase “numbers matching” blackens the eye of the hobby. The only reason one would use such a deceitful definition of “numbers matching” would be in a calculated attempt to mask the true nature of the vehicle for self-serving purposes. This ultimately has a negative impact on the hobby.
For more information on what your rights are in such a transaction, please call or email me, I would be more than happy to discuss this or any other matter concerning car collecting with you.
Bryan W. Shook, Esquire is a licensed Pennsylvania lawyer. Attorney Shook’s office is headquartered in central Pennsylvania although his practice takes him across the country. During his career, Attorney Bryan Shook has become a powerful advocate for his clients and one of the foremost collector, antique and automotive fraud and misrepresentation attorneys in the country. He has successfully tried as well as amicably resolved cases throughout the United States. Bryan Shook can be reached by e-mail at BShook@shooklegal.com or by phone at 717-884-9010.
Bid with Knowledge; Buy with Confidence – Vintage Automotive
Estate Sale of Important Cars Nets Nearly $500,000.00
30+ Antique Cars Sell for $494,400.00 at Rural
Pennsylvania Sale
By: Bryan W. Shook, Esquire
Email: bshook@shooklegal.com
Estate Sale – Allen Shaffer, Esquire
April 24, 2010 – Millersburg, Pennsylvania
Allen Shaffer, a well respected local attorney recently passed away and this past Saturday the majority of his car collection came to sale. Over thirty lots were offered with no reserve, no bidder registration charges and with no buyers premium.
By the mid afternoon, all of the vehicles had been sold and the proceeds realized were just about $500,000.00 from the sale of the vehicles.
Here are the results along with the comments of Bryan W. Shook who personally attended the sale.
|
Year |
Make |
Model/Type |
Comments |
Price |
|
1931 |
Ford |
Model T – 5 -Window Coupe |
$19,000.00 |
|
|
1981 |
Delorean |
$20,000.00 |
||
|
1923 |
Buick |
Touring |
bad water pump – lower hose disconnected & pump corroded |
$18,000.00 |
|
1949 |
Studebaker |
Commander convertible |
Nicely Restored |
$25,000.00 |
|
1917 |
Maxwell |
Touring |
Restored 10yrs ago – didn’t run at time of sale |
$17,000.00 |
|
1925 |
Nash |
2dr Sedan |
Nicely Restored |
$11,000.00 |
|
1915 |
Ford |
Model T |
$13,000.00 |
|
|
1925 |
Nash |
Touring |
Great Condition, very nice car |
$20,000.00 |
|
1913 |
Buick |
Touring |
No Title – Yet |
$28,000.00 |
|
1929 |
Lincoln |
7 Passenger Phaeton |
$65,000.00 |
|
|
1910 |
Buick |
Run-a-bout Roadster |
$20,000.00 |
|
|
1908 |
International |
High-Wheeler |
Nice Original – found in barn in New Bloomfield, Perry County, Pa in mid 1940s |
$19,000.00 |
|
1953 |
Ford |
F100 |
Titled as 1954 – OHV I6 |
$15,500.00 |
|
1906 |
Cadillac |
Tulip Roadster |
$54,000.00 |
|
|
1954 |
Ford |
Crestline 4dr |
Needed work & carpeting |
$8,000.00 |
|
1917 |
Studebaker |
Touring |
Nice older restoration |
$23,500.00 |
|
1962 |
Studebaker |
Lark convertible |
$7,500.00 |
|
|
1927 |
Ford |
Coupe |
$8,000.00 |
|
|
1972 |
Chevrolet |
Impala convertible |
Shoddy Repaint – overspray evident, poorly masked |
$9,000.00 |
|
1918 |
Stanley |
Steamer Touring |
$46,000.00 |
|
|
1976 |
Lincoln |
Continental |
$1,600.00 |
|
|
1922 |
Dodge |
Touring |
3 owners from new, had side window curtains – very nice potential |
$9,000.00 |
|
1976 |
Buick |
LeSabre |
$1,300.00 |
|
|
1922 |
Whippet |
4dr sedan |
$9,000.00 |
|
|
1999 |
Ford |
F150 pickup truck |
6cyl 4wd |
$8,000.00 |
|
1951 |
Kaiser |
4dr sedan |
No Title |
$5,000.00 |
|
1965 |
Chevrolet |
Corvair |
Possible missing VIN Plate??? Total Mess |
$1,800.00 |
|
1951 |
Henry J |
Corsair Deluxe |
Cooling Issue |
$8,500.00 |
|
1969 |
AMC |
Rebel SST 4dr Sedan |
6cyl – Very Nice Original |
$1,200.00 |
|
1958 |
Mercedes |
190D – 4dr |
Project car with good parts, some trim, but hood wouldn’t open |
$500.00 |
|
1991 |
Yugo |
“Needs Fuel Pump” |
$2,000.00 |
|
Total Sales: $494,400.00
|
|
As one can surmise from the results listed above, the sales prices were fairly reflective of the market today. While the auction was largely under promoted, collectors, brokers and dealers showed up from several states including, Ohio, New York, Connecticut, Maryland and New Jersey to bid on and buy cars and automobilia from this great collection.
Most of the cars in the collection were operational and nearly all of them presented very well. The cars purchased from this collection are sure to be coveted pieces in future collections. While higher prices may have been realized had an auction house such as Carlisle Auctions, RM Auctions, Bonhams or Goodling offered the vehicles, this sale proves that not all collections must be sold through a large auction venue to achieve market value results.
Attorney Bryan W. Shook is not only a devoted automotive enthusiast, but is also an experience litigator who devotes a large portion of his law practice to helping other collectors and hobbyists understand today’s market. Attorney Bryan Shook is available throughout the United States for consultation, advice, and information. If you’d like more information or would like to speak with Attorney Bryan W. Shook please email him at BShook@shooklegal.com.
Bid with knowledge. Buy with confidence. – Vintage Car Law
32nd Annual Spring Carlisle Swap Meet & Collector Car Auction – April 21-26, 2009
32nd Annual Spring Carlisle Swap Meet & Collector Car Auction
By: Bryan W. Shook, Esquire
Email: bshook@shooklegal.com
The 32nd annual Spring Carlisle Swap Meet & Car Corral are about to get underway. Officially the event runs from April 21 through April 26, 2009, but large vendors are starting to arrive today. Carlisle’s swap meet offers what might be the best selection of automotive treasurers of any swap meet in the world. For the automotive faithful that make their annual trek to Mecca, the weather for this year’s Spring Carlisle looks to be better than most years, with forecasted highs in the low to mid 70s and clear skies! I know, the diehards will be depressed … “What no rain, how can it be Carlisle without rain???”
A change for this year’s event is that the Collector Car Auction will be held on Thursday and Friday nights, April 23 & 24, 2009 at the Carlisle Expo Center. Also new for Spring Carlisle is a cruise-in to be held on Sunday at the grandstands. This follows last fall’s successful Sunday cruise-in. I look for several hundred cars to attend.
As for the auction, there are several very appealing lots. With more than 250 vehicles scheduled to cross the auction block, there is certain to be something that appeals to everyone! See you in Carlisle! Http://www.carlisleevents.com.
Attorney Bryan W. Shook is a devoted automotive enthusiast, but is also an experience litigator who devotes a large portion of his law practice to helping other collectors and hobbyists understand today’s market. Attorney Bryan Shook is available throughout the United States for consultation, advice, and information. If you’d like more information about this topic or would like to speak with Attorney Bryan W. Shook please email him at BShook@shooklegal.com.
Bid with knowledge. Buy with confidence. – Vintage Car Law
Let’s Review: Barrett-Jackson – Palm Beach 2009 Collector Car Auction
Let’s Review:
Barrett-Jackson – Palm Beach 2009
By: Bryan W. Shook, Esquire
Email: bshook@shooklegal.com
Well, it’s hard to believe but the 7th Annual Barrett-Jackson Palm Beach Collector Car Auction is behind us.
How did the stars of the auction do?
The top seller of the weekend was Lot Number 369.1 the Super Chevy Magazine feature custom 1969 Chevrolet Camaro RS/SS titled “Project American Heroes”. The Camaro, which included parts supplied by over twenty five major speed parts producers and a legendary LS-series GM 427cu GMMG supplied powerplant, hammered sold for $500,000.00! The proceeds from the sale of the Camaro will go to benefit the Armed Forces Foundation, a truly worthy cause.
Two other stars of the auction with their proceeds going to charity were Lots Nos. 655 and 655.1 the 2004 Ford Mustang GT Convertible concept car and the 2004 Ford Mustang GT Coupe concept car, respectively. These cars debuted in January 2003 at the North American Auto Show and arguably started the current muscle car frenzy amongst the big three. Many people believe that these two concept Mustangs are what raised the ante for General Motors and Chrysler to go all in again and give the public what they want, FUN muscle or muscle-type cars. Ford let these two ponies out of their livery for Charity. Both concepts sold individually for $175,000.00, each, a bargain, any way you slice it. The proceeds from the sale of these two pieces of current American automotive history went straight to the benefit of the Juvenile Diabetes Research Foundation (JDRF). After the bidding for the coupe stalled around $150,000.00, Barrett-Jackson, CEO, Craig Jackson and Barrett-Jackson, President, Steve Davis, big against each other with Mr. Davis eventually taking home the concept car for the very reasonable price of $175,000.00.
The third historic Mustang that Ford auctioned off, was lot number 665, a 2010 Shelby GT500 coupe, the very first available for public sale. The hammer price was $150,000.00 and the proceeds above MSRP for the car went straight to the Carroll Shelby Children’s Foundation.
So, how did my “sleeper” predictions go? Pretty well, but judge for yourselves.
1920 Chevrolet Model T – 1 Ton (open cab) chassis truck (Lot # 678) – Sold $37,400.00
1964 ½ Ford Mustang convertible (Lot #347) – Sold $51,700.00
1972 Chevrolet C10 Cheyenne Short Bed pickup (Lot #32) – Sold $35,200.00
1976 Chevrolet C10 Silverado Long Bed pickup (Lot #330.1) – Sold $29,150.00
1994 Pontiac Trans Am 25th Anniversary Edition Convertible (Lot #58) – Sold $37,950.00
1999 Pontiac Trans Am 30th Anniversary Coupe – Daytona 500 Pace Car (Lot #616.1) – Sold $39,600.00
I think my sleepers performed very well considering that the lack of national publicity that other auction cars enjoyed and the current economic situation but they all sold at the high end of their respective value ranges, proving that good quality cars (and trucks) will always command higher prices.
Closing Thought – I believe GM has sold over 200 or so of its Heritage Collection and I hope that this “garage sale” is over soon. On the bright side, I hope that the new owners of these GM refugees allow the cars to see the light of day again and hopefully we can all enjoy them at an upcoming automotive event or car show.
Attorney Bryan W. Shook is a devoted automotive enthusiast, but is also an experience litigator who devotes a large portion of his law practice to helping other collectors and hobbyists understand today’s market. Attorney Bryan W. Shook is a seasoned automotive collector and restorer and as such brings real world experience and firsthand knowledge to the table for his clients. Attorney Bryan Shook is available throughout the United States for consultation, advice, and information. If you’d like more information about this topic or would like to speak with Attorney Bryan W. Shook please email him at BShook@shooklegal.com.
Bid with knowledge. Buy with confidence – Vintage Car Law
State of the Hobby – March 2009
A review of the Collector Car Market in light of the current Economic Situation
Even considering the uncertainty of the current economic state antique and collector vehicles remain to be good investments. Over the past year we’ve seen the Dow Jones Industrial Average plummet from a high of 13,136.69 to a low of 6,469.95 only a few days ago. This is an evaporation of over 6,600 points or better stated, over 50% in less than one year’s time. How does this translate to the collector car market? The simple translation is BUY!!!
Current market indications are that while the wind may be out of the sails of the Dow Jones, the collector car market, viewed as a whole, is holding its own with bargains being reported from nearly every auction, which is a reiteration that we are in a buyer’s market. Overall, the collector car market has not experienced the same dramatic, marked decline as the Dow Jones. Collector cars remain a great place to park your money. Properly purchased collectible vehicles, if nothing else, continue to be an enjoyable savings account.
The collector car market, like any other free, open market, is driven purely by economics. The premise is simple: supply and demand. Given the current uncertainly of Chrysler, General Motors and Ford, collectively known, at least for the time being, as the “Big Three”, demand for stylish, desirable cars from their past will continue to be high, much higher than supply. It was announced by General Motors on February 20, 2009, that, at least for the time being, all sixty engineers of the High Performance Vehicle Operations (H.P.V.O.) have been “temporarily” reassigned. H.P.V.O. was the birthplace of high performance and specialty vehicles from GM. Therefore it is easy to predict that the future of desirable collectible vehicles from GM will be extremely limited. Over the years, the group has developed vehicles such as the Cadillac CTS-V, STS-V and XLR-V, Chevy SSR, HHR SS, TrailBlazer SS, Colorado V8 and the Saturn Ion Red Line.
Over the past several years we were blessed to see some great vehicles come to life from the drawing boards and auto shows and into the dealerships. These vehicles include the Ford GT, newly redesigned, Ford Mustang, the Dodge Charger and now the Dodge Challenger and Chevrolet Camaro. Other collectible offerings include the Dodge Viper, Chevrolet Corvette C6 Z06 and C6 ZR-1 and the Saturn Sky and Pontiac Solstice roadsters.
To collectors’ detriment, the recent economic viability plans submitted to Congress on behalf of the Big Three, predict a paucity of desirable (i.e., collectible) vehicles from Detroit. Instead of producing niche vehicles it seems that hybrids and alternative energy vehicles will be receiving all of the design dollars and energy in the coming years. You should be admittedly suspicious of this choice to design cars around the strings attached to federal bailout monies … hopefully this won’t lead to the insipid vehicles that came from Detroit after the smog regulations were rolled out in the early 1970s. Given the current unfortunate economic situation, headlined, by the Big Three’s struggle to survive, the collector car market stands to benefit exponentially by an increased demand for the past-produced models; especially the high-performance models.
To the true collector, the economy does not necessarily play a role in whether to purchase a vehicle. The true collector’s decision to purchase a vehicle is driven by price, desire to own the vehicle, and the hobby’s market…not the stock market. Buying with this in mind will result in a good vehicle purchased at a good price and a safe investment; or in the very least a good savings account. In contrast to the sharp decline of the stock market over the last year, to the best of my knowledge, we have not seen a single collectible vehicle decrease by 50% in value in less than one year’s time!
Bid with knowledge. Buy with confidence.
This article was written by Bryan W. Shook, Esquire the founder of Vintage Automotive. Attorney Bryan W. Shook is a devoted automotive enthusiast, but is also an experience litigator who devotes a large portion of his law practice to helping other collectors and hobbyists understand today’s market. Attorney Bryan Shook is available throughout the United States for consultation, advice, and information. If you’d like more information about this topic or would like to speak with Attorney Bryan W. Shook please email him at BShook@shooklegal.com.
Jury Verdict: Restamped Engine is not “original” “number’s matching” engine!!!
Bryan W. Shook, Esquire
717-884-9010
Des Moines, Iowa (1-29-2009) – Jury rules that seller breached contract when he did not disclose a 1969 Chevrolet Camaro Z/28 (VIN 124379L524309) did not retain its original engine.
The case began in June 2003 when the Defendant, David Reyes, acquired the Camaro from a co-worker for $15,000.00. When the Defendant acquired the Camaro from his co-worker, he testified that it did not have its original engine and that another engine was given to him by his co-worker at the time of the sale. This other engine was the crux of the case.
The story goes that when the engine in the vehicle began to run poorly and smoke a little, the Defendant had the engine that his co-worker had given him rebuilt. Apparently, his co-worker had located the other engine and choose it because it was date coded appropriately for this particular December 1969 built Camaro. The story goes that the co-worker had the vehicle identification number of the Camaro stamped into this replacement engine, making the replacement engine look identical to the original engine, prior to the Defendant acquiring it.
In April 2004, Defendant placed the newly rebuilt, but non-original, restamped engine in the Camaro and placed the Camaro for sale through the internet auction website, eBay.com. The Defendant placed the vehicle up for auction with a “Buy it Now®” price of $35,000.00, over twice what he paid for the vehicle less than a year earlier. This may not seem to be a big deal, but in this case, the numbers on the non-original engine were stamped so well, that even the Defendant’s own expert witness on cross examination by Attorney Shook, at the trial could not tell they were restamped. No where in the description did the Defendant ever say the vehicle did not have its original engine and he never disclosed this fact.
Specifically, the Defendant advertised the car has being “Numbers Matching DZ302 Original,” “unmolested,” “low mileage,” and “as close to being a true survivor as any you’ll find.” The auction ended with the Plaintiff, Daryl Hansmeier of Davenport, Iowa buying the Camaro for $25,200.00.
It was never disclosed to Plaintiff that the engine in the vehicle was not the original engine, as a matter of fact, the engine restamping was not disclosed to Mr. Hansmeier until February 27, 2007 nearly three years after the sale of the vehicle.
In March 2007, the buyer, Mr. Hansmeier contacted noted classic car fraud attorney, Bryan W. Shook (Camp Hill, Pennsylvania) to help him resolve this matter. An inspection of the Camaro was performed by world-renowned Camaro guru, Jerry MacNeish (Eldersburg, Maryland). Upon inspection, Mr. MacNeish confirmed that while the Camaro was a genuine Z/28 model, it did have a restamped, non-original engine. Mr. MacNeish valued the car at $19,500.00 at the time of purchase, meaning that Mr. Hansmeier paid too much for the vehicle when he purchased it.
Local counsel, David Hellstern of the Kreamer Law Firm in West Des Moines, Iowa and Attorney Shook subsequently filed suit on behalf of the Plaintiff, Daryl Hansmeier and his wife for Breach of Contract, Fraud, Material Misrepresentation and Breach of Warranties.
A three day trial was held at the Polk County Iowa Courthouse on January 26-28, 2009 with the Honorable Chief Judge Arthur Gamble presiding.. The Defendant, Mr. Reyes’, defense was that he and the Plaintiff, Mr. Hansmeier, had different meanings of the terms of the contract, namely the term, “Numbers Matching DZ 302 Original.” The Plaintiff put on the testimony of noted Camaro historian and chief judge of concours judging at the Camaro Nationals in Carlisle, Pennsylvania, Jerry MacNeish, who testified that the phrase, “Numbers Matching DZ 302 Original,” means, to someone in the market for a 1969 Camaro Z/28 that they are looking at a vehicle with its original 302 cubic inch engine with it’s original stampings. Mr. MacNeish stated unequivocally that a person without specialized knowledge would not be able to tell that the engine had been restamped and accordingly wouldn’t know that he had been deceived until someone told him.
The jury retired to the deliberation room early in the afternoon of Wednesday, January 28, 2009 and quickly returned a unanimous verdict finding that the seller, David Reyes was liable for breach of contract for failing to deliver to Mr. Hansmeier the 1969 Camaro he promised him, specifically, a 1969 Camaro Z/28 retaining its original, correct, numbers matching engine.
Attorney Bryan W. Shook, is a true car guy, in every sense of the work, he is not only an collector, restorer and hobbyist, but is also and attorney who devotes a large portion of his practice to helping other collectors and hobbyists when they find themselves the victim of receiving something other than how it was advertised. Currently Attorney Shook is involved in automotive deception cases and represents clients in nearly a dozen states. Attorney Shook had this to say about the case, “Let it be known, that misrepresentations in the collector car hobby will not be dealt with lightly, the court system proved this today by a unanimous jury verdict in favor of full disclosure and truthful dealings.”
