JUDGE AND JURY FIND AGAINST SELLER OF CAR WITH CHANGED TRIM TAG – NOT NUMBERS MATCHING – FRAUD – PUNITIVE DAMAGES
Chicago, Illinois – March 7, 2019 – United States Federal District Court for the Northern District of Illinois – A judge and jury have unanimously ruled that a car sold as “numbers matching” must have its original trim tag.
The case involved a 1969 Chevrolet Camaro RS Z28 (VIN: 124379N697642) and was prosecuted by Bryan W. Shook, Esquire (Vintage Car Law® – Shook Legal, Ltd.) and Richard K. Hellerman in Federal Court in Chicago. The car was bought by the seller in Illinois circa 2004 and immediately taken to a restoration shop for repairs/restoration. During the restoration the original color of the car was discovered to be Burnished Brown. The seller was unhappy to learn that the original color of the car was brown and not black. It was decided to repaint the car Tuxedo Black and change the cowl tag (trim tag) to reflect the updated color. Also during the restoration the interior was changed from black standard interior (code 711) to black custom interior (code 712). This change was also reflected upon the new cowl tag. The seller owned the car for a number of years and decided, in 2014 to sell it.
Photo of the Camaro – https://drive.google.com/open?id=1rQNM-G8yQW4EjyKnAT9A5tNyFAN2davj
The seller advertised the car in Hemmings Motor News as “1969 Camaro Z28, Tuxedo Black – all #’s and components matching … $119,000” The buyer, who had been looking for such a vehicle (specifically a Black or Hugger Orange Z28), called the seller and specifically asked if the car was originally black and if it was original numbers matching. The seller confirmed these statements and sent a picture of the cowl tag to the buyer as proof. A deal was struck for $119,000 and the car changed hands.
The buyer was very happy with the car; it was beautiful. It was not until an appraisal for insurance purposes, over a year later, that true nature and identity of the car was discovered. During the appraisal, conducted by a noted Camaro appraiser and expert, it was noted that the cowl tag was not original to the car. Additionally, it was discovered that the rear axle was poorly restamped and not original to the car. The buyer was SHOCKED and immediately sought to unwind the deal. The seller stayed steadfast insisting that all was fine with the car.
During the course of the litigation, it was discovered that the seller had not only changed the trim tag, but had also kept the original trim tag without ever previously disclosing this to the buyer. The original trim tag was produced in the discovery phase of the case and the original trim tag clearly showed standard black interior and burnished brown exterior on this 1969 Camaro Z28.
Photo of the original cowl tag – https://drive.google.com/open?id=1f5LuTZQtni99u2eAV1pMGftvTvsIOwgV
A jury trial was held at the end of February, 2019 and the jury unanimously returned a verdict of fraud in favor of the buyer and against the seller. The jury found actual compensatory damages in the amount of $66,350 and $119,000 in punitive damages. The judge separately found in favor of the buyer and against the seller for breach of contract and breach of express warranties and ruled that the seller had to buy back the car (rescission) and pay buyer for all expenses incurred maintaining the subject Camaro since buyer first demanded rescission with costs of the suit. The total judgment award, including the rescission award was in excess of $300,000.00.
Specifically the judge found that the car was not numbers matching on at least four points:
1. The Camaro was not numbers matching because it had a different interior from when it left the manufacturer.
2. The Camaro was not numbers matching because it had a different color than it had when it left the factory.
3. The Camaro was not numbers matching because it had a different rear axle when it left the manufacturer.
4. The Camaro was not numbers matching because it had a different trim tag when it left the manufacturer.
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.
The Dirty Side of the Hobby – Fake Pedigree & Provenance
Forgeries and fakes have long been the scourge of the collector car hobby. This practice has continued thanks to many “entrepreneurs” who have established businesses selling “reproduction” tags and paperwork for older vehicles. Reproduction however would imply that it is a replica of the original but actually the term “reproduction” in this sense usually means counterfeit.
In the Corvette, Chevelle and Camaro market “aged” build sheets or tank sheets, made to order, to your specifications, have long been available. The number of counterfeiters who forge historical vehicle documents and paperwork is very concerning. Sham documents have been openly advertised for nearly two decades in Hemmings Motor News, eBay, Craigslist and on the internet. Some of this fake paperwork is so doctored that it actually smells old or in the case of Corvette tank sheets like gasoline. Of course if you interview any of the outfits that create these items you would quickly be told that they are novelty items. All too often, however, people are deceived by the very existence of this fake paperwork and lulled into a sense of security when viewing such a vehicle which may be for sale under the mistaken guise that it has pedigree and provenance, to wit, the counterfeit documentation.
An additional problem is that of “air cars” (cars created from “thin air” with nothing more than a VIN). With counterfeit documents, air cars are immediately given credence and pedigree. In additional to fake window stickers, build sheets, FMVSS stickers, Corvette Order Copy (“Tank Sticker”) there are also forgers out there that make new VIN tags, cowl tags, trim tags and others that offer the proper rivets or screws to affix the fake tags.
One method of outing some of the fakes in the hobby has been recently introduced. A service of the National Corvette Restorer’s Society (NCRS) which tells owners when their cars were built and where they were delivered new has the potential for exposing several fraudulently presented classic Chevys. With the information provided by the NCRS, hobbyists will be able to verify their car’s paperwork, VIN number and cowl/trim tag to make sure that it all connects properly.
With the “birthday” of a car known, you can make sure that the VIN is consistent with that month of production and that the engine production stamping precedes the cars build date. Also with this information, you can determine if the assembly week code on the trim tag is consistent with the date given by the NCRS. Finally, if the vehicle has “paperwork” or a window sticker (or build sheet) the dealership should match that or be reasonably close in vicinity (e.g. same zone — dealer trades) to the dealership provided by the NCRS. If any of this information does not match or if the birthday of the car does not correlate to the VIN, engine stamping or cowl tag, then you have major problems. If the information does not match, it is wise to investigate the car carefully and, if necessary, hire and expert to examine the vehicle for signs of further molestation and restamping.
If you find that the vehicle you own is a clone or has doctored paperwork, a tampered VIN, restamped engine, transmission or replacement VIN tag, cowl tag or trim tag, you should immediately contact an attorney to learn about your legal rights and what recourse and options you may have.
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.
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
