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.
Collector Car Market Experiences Billion Dollar Growth over last 10 years
Choosing the Right Legal Counsel Makes All the Difference
The collector car insurance company Hagerty Insurance is reporting that the collector car auction business in the United States is now a billion dollar business. Reports suggest that the total gross auction sales in 2013 eclipsed $1,300,000,000.00 ($1.3 Billion) according to Hagerty. Hagerty comparatively notes that in 2004 the figure was around $282,000,000.00 ($282 Million). This is a billion dollar growth in the United States collector car auction market in ten short years! As Hagerty and other news outlets note, this growth is not simply confined to the United States, but the world-wide collector car market has soared similarly over the same time-period.
With this type of unprecedented growth within the collector car market, hobbyists, collectors and car investors need to be more vigilant than ever to protect their investments and their collections. The market is ripe for fraud, misrepresentations and other nefarious actions, including ownership disputes and estate or probate litigation. If you, unfortunately, find yourself on the cusp of a dispute or hauled into court or other legal tribunal over the title, ownership, pedigree, provenance or history of an antique or classic car or collectible, you must be prepared to present your side of the story in an intelligible, persuasive and cogent manner. You would be best served by employing an attorney who fully understands the issues you face and the collector car market and car auction industry.
The handling of a legal matter concerning an antique or collector car is markedly different than other types of legal matters. In the collector car hobby there are “terms of art” (i.e. trim tag, restamp, NOS, NOM, matching numbers, etc.) that must be defined for the Court in order for your position to be argued effectively. Furthermore, many times it will not simply be enough to define the term, but rather the term itself and its application to the facts of the case are what the case’s ultimate determination may turn upon. This is where it pays to hire an attorney who not only “speaks your language” but also knows how the frauds are perpetrated and how to persuasively represent your position to the Court or Jury.
Ultimately, collectors must be hypervigilant in the current market and careful to employ the right legal counsel and other professionals with respect to their dealings, collections, and businesses. The market is constantly changing, not only in its growth but also in its technicalities and breadth, a collector’s diligence is of paramount importance.
Bryan W. Shook, Esquire is an attorney in Camp Hill, Pennsylvania whose practice areas include vehicle fraud, dealership fraud, VIN matters, title fraud, VIN error, estate ownership questions and general collector car problem resolution. 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 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.
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
Fall Auctions – What Lies Ahead?
So now that Monterey is over, what lies ahead?
By all accounts Monterey was a success; collectors once again proved that no-nonsense cars still bring big money. The collector car market is alive and well. There were 14 cars alone that sold for more than $1,000,000.00 during RM’s Saturday night sale in Monterey. Similarly other auctions around the peninsula reported big numbers and record bidders.
So, what lies ahead? The fall is packed with great auctions which plan to offer something for everyone. Here is a sampling:
- September 2nd through 5th, 2010 – Auburn Collector Car Auction – Auctions America by RM
- September 16th through 19th, 2010 – Mecum’s St. Charles Illinois sale
- September 23rd through 25th, 2010 – Barrett Jackson – Las Vegas
- September 30th through October 1st, 2010 – Carlisle, Pennsyvlanaia – Carlisle Auctions held in conjuctionw ith Fall Carlisle Swap Meet
- October 7th through 8th, 2010 – RM Auctions – Vintage Motorcars of Hershey
- November 5th through 6th, 2010 – The Bob McDorman Collection (featuring one of the world’s most complete collection of Corvettes) – Mecum Auctions
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
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
Record Price – 1992 Pontiac Firebird Formula $38,500.00 – GM Heritage Collection Refugee
1992 Pontiac Firebird Formula – Sells for $38,500.00!!!
By: Bryan W. Shook, Esquire
Email: bshook@shooklegal.com
BREAKING NEWS – The 1992 Pontiac Firebird Formula just released from the GM Heritage Collection has just sold for an outstanding $38,500.00! The ‘bird sold as lot #11 today, Thursday, April 09, 2009 at the 7th Annual Barrett-Jackson West Palm Beach Collector Car Auction.
While I cannot confirm that this pale yellow Firebird was a 1LE version, I can state that it featured the highly coveted WS6 performance suspension option, 1LE style brake calipers, no air conditioning and a 305cu tuned port injected small block with a 5spd manual transmission. The car also appeared to have the engine oil cooling package. The VIN of this car was 1G2FS23F0N1200001 confirming that this was in fact the very first 1992 Pontiac Firebird Formula produced.
Although strong money was spent to purchase this car, the buyer can rest assured that he/she has purchased one of the most historically significant 3rd Generation F-Bodies directly from GM! This car was breath-taking in every way and presented as an outstanding, original, vehicle, as close to a brand new one as anyone has gotten in the nearly two decades since production of the third generation F-Bodies ceased.
For more information regarding my views on the up-ward trend of the 3rd and 4th Generation F-Bodies be sure to read my article – “GM F-Bodies – 1982-2002 Can’t Miss Investments, Even in this Economy“
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
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.”
