Barrett-Jackson settles lawsuit against disgruntled customer
We heard the first rumblings of discontent a few weeks after last year's Barrett-Jackson when it was reported that some people thought certain cars weren't getting their fair share of time up on the block. One man, David Clabuesch, went as far as chaining up his vehicle after it was sold and trying to prevent its delivery to the buyer. He even went a step further and posted signs around the vehicle expressing his displeasure with the auction company. Barrett-Jackson responded by filing a defamation lawsuit against Clabuesch, wanting to protect its reputation. The two have settled their differences, and Clabuesch has agreed to "no longer pursue any action alleging auction irregularities, including the claim that the car was short hammered while on the block." Read on past the jump for the full story from Barrett-Jackson's press release.
[Source: Barrett-Jackson]
PRESS RELEASE
SCOTTSDALE, Ariz. - January 9, 2008 - Officials with the Barrett-Jackson Auction Co. LLC, today announced that a settlement was reached on Jan. 7, 2008, in a suit filed against David L. Clabuesch in U.S. District Court in Arizona. In the settlement, Clabuesch exonerated the Barrett-Jackson Auction Company of all allegations of wrongdoing in relation to a situation that occurred at the company's Scottsdale event in January 2007. Details of the financial terms of the settlement were not disclosed.
"We're pleased to have reached a successful resolution and to put this matter behind us," said Steve Davis, president of Barrett-Jackson. "While we regretted having to take the extreme step of filing a lawsuit in this matter, we had no choice but to aggressively defend our integrity and the fairness of our company's business practices. This action was necessary to protect not only our own interests, but also those of the thousands of bidders and consignors who place their trust in us each year."
The lawsuit arose from circumstances surrounding the sale of Clabuesch's vehicle at Barrett-Jackson's January 2007 Scottsdale auction. Unhappy with the price paid for the vehicle, Clabuesch locked and chained the tires after it was sold, and attempted to prevent delivery to the new owner. Clabuesch also posted numerous signs in and around the vehicle expressing his opinions about Barrett-Jackson and the company's auction practices. Visible in one of the most high traffic areas of the auction site until removed by the company's security officer and local police, the signs were viewed by the company's customers and members of the public attending the event. Shortly after the January 2007 incident, the company was faced with responding to numerous defamatory rumors and untrue statements related to the Clabuesch incident, which were published on various Web sites, blogs and online chat rooms.
A settlement was mediated on Jan. 7, 2008, by former Superior Court judge Rebecca Albrecht. In connection with the settlement, Clabuesch issued a written, notarized statement that reads:
"Upon review of auction video footage and further consideration of the relevant facts, I, David L. Clabuesch, have concluded that with respect to the January 20, 2007, auction of my vehicle - a 1970 Plymouth Hemi-Cuda - conducted by Barrett-Jackson that I can no longer pursue any action alleging auction irregularities, including the claim that the car was short hammered while on the block. I have also determined that there was no relationship between Barrett-Jackson and the buyer of my vehicle, nor was there any conspiracy between Barrett-Jackson and the buyer of my vehicle, or any other person, to short hammer the sale of the car. I no longer believe that Barrett-Jackson violated the terms of the consignment agreement in conducting the auction sale or otherwise breached any duties to me as a consignor."
Davis concluded, "On the brink of the most exciting automotive lifestyle event in our history, we've demonstrated that Barrett-Jackson upholds the most ethical business practices in the collector car auction industry and that we will take the steps necessary to defend those practices when we are compelled to do so."
Copies of Barrett-Jackson Auction Co. LLC et al vs. David L. Clabuesch et al, US District Court for the District of Arizona, Case No. CV07-561-PHX-EHC can be obtained by contacting the clerk of the U.S. District Court in Phoenix or at www.azd.uscourts.gov. A copy of Judge Clabuesch's statement can be read at www.barrett-jackson.com/statement.
Established in 1971 and headquartered in Scottsdale, Ariz., Barrett-Jackson specializes in providing products and services to classic and collector car owners, astute collectors and automotive enthusiasts around the world. The company produces the "World's Greatest Classic Car Event" in Scottsdale, AZ, and has expanded to other venues, including Palm Beach, FL and in 2008, Las Vegas, NV. For more information about Barrett-Jackson, visit www.barrett-jackson.com or call (480) 421-6694.
Reader Comments (Page 1 of 2)
maxrevz 7:21PM (12/21/2008)
I have bought and sold many cars through auctions, and attended BJ for over 20 years dating back to the Tom Barrett and Brian Jackson days. I have read numerous viewpoints regarding this matter.
Whenever choosing to involve yourself in an auction as buyer, or seller, you must consider that games will be played. Either you give in to this possibility because proving wrong-doing is nearly impossible, or simply don't participate.
The luck of the draw as they say.
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LMBVette 9:47AM (1/11/2008)
I wonder how much extra Barrett-Jackson paid the former owner of the 70 'cuda in order for him to change his tune so drastically?
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Reuben 9:51AM (1/11/2008)
Good question, hey don't these things have reserves anyway?
Reuben 9:50AM (1/11/2008)
Good question, hey don't these things have reserves anyway?
Reuben 9:52AM (1/11/2008)
DOH!
Dan 10:36AM (1/11/2008)
I think it was more of a "or we'll break your legs" sort of thing rather than a "here's an extra 50 grand, sorry about that." Barrett Jackson has never struck me as a money tosser... although their customers might be.
Delayedz 9:49AM (1/11/2008)
Meh Barrett-Jackson is the soul reason trying to get into restoring cars is impossible, I wish they would go out of business. I can't stand that people have beat up cars that don't even run and they expect $15,000 for it because a fully restored car sold for $50,000 on BJ...meanwhile a few years ago the same car could be picked up for $1,000.
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Reuben 9:52AM (1/11/2008)
But at least now that fully restored one brings in so much cash.
ron 7:03AM (1/15/2009)
how can you say that barrett-jackson is the ones that made car collecting so expensve not the 1s setting the prices they are just the 1s that are running the auction
ron 7:16AM (1/15/2009)
its called inflation just like every thing else in the world
ron 7:13AM (1/15/2009)
they call it inflation like every thing else in the world ten years ago you could buy a new truck for 15000 now the same truck will cost you 30000
mango 9:51AM (1/11/2008)
Barrett-Jackson is the worst thing to ever happen to the collector car hobby. They are dishonest, money hungry men out to make a buck. They are single handedly making the collector car hobby inaccessible to true car fans.
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Jeff 10:13AM (1/11/2008)
Given their litigation happy lawyers, I think I would have surrounded my statements with "in my opinion they are..." vs. stating it as fact. It's far more difficult for the lawyers to go after you for expressing a negative opinion.
AZMike 10:30AM (1/11/2008)
what? Barrett-Jackson didn't pay this idiot a dime.
I don't know if anyone remembers the details of this idiotic claim, but here's what happened.
when you sign a car in with Barrett-Jackson, they essentially "pencil in" a tentative price when you sign the papers. I know; I've sold two cars there. this price is not a secret; they share it with you, too. they are not morons; they are aware the higher the price, the more activity there will be, as well as a higher commission for them as well.
in the particular case of this Barracuda, the tentative price was $200,000. the owner of the car (a court judge from Illinois) was well aware of the number, too.
it's ridiculous to even think Barrett-Jackson would try to pull any funny stuff here. there are just a few witnesses, wouldn't you say? it's a little difficult to pull a sleight-of-hand in front of a few million witnesses, and even in the case of this particular car (which was sold during a commercial on Speed channel), I'm sure there were many folks who either recorded this on a video camera or cell phone.
in the particular case(s) of the car I sold here, they kept in on the block almost five minutes, which is longer than they were required to. and for those whiners that think they should (of course) keep their particular car on the back until it sells for their mystical price, should they do this for everyone?
for those who've been here, this event runs like a well-oiled machine. now, let's say that the normal three-minute block time is stretched to five minutes. suddenly, selling 1,200+ vehicles in five days gets totally screwed up.
every (and I do mean EVERY) car sold at Barrett-Jackson is a "no-reserve" sale; again, the buyers are well aware of this. Barrett-Jacskson does give the sellers an 'out' however; the owner can "buy the car back" by just paying the seller commission for the highest amount. that's explained in the contract you sign when you list the car for sale, too.
however the owner of the car chose to not take this route, and instead decided to run a chain thru the wheels of a car he no longer owned, like an upset child having a tantrum.
it's especially scary to think this guy is a judge in Illinois, and could possibly hold the fate of untold people in his rather crazy hands in his home district.
and for those Barrett-Jackson haters:
-no one forced anyone to buy a car here.
-no one forced anyone to sell their car here, and the ones who did, did so of their own free will.
-not just anyone can walk in off the street and bid on a car, like eBay. bidders have already had their creditworthiness checked out in advance, and like the sellers, are aware of how everything works.
-ANY vehicle is worth what it brings.
and lastly, this is entertainment. make no judgment UNLESS you've actually been here.
AZMike
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DKB_SATX 10:58AM (1/11/2008)
Not to say the seller who chained up his car was in the right, or had a case, but a car is real property. Just because an auction had completed in which he agreed he'd sell the car to the winner of the auction, if he still holds the title and has not yet received the full payment to which he's entitled based on the outcome of the auction, he does in fact still own the car. It may be that Barrett-Jackson can place a lien on it based on their contract conditions (your statement that the seller can retain the car if he pays the commission that would have been owed for the final price.)
AZMike 11:16AM (1/11/2008)
DKB,
wrong.
when you sign the Barrett-Jackson contract, you hand over a signed-off title to them. you have agreed to ALL the terms of the contract, which also include a clause for "timely payment". in my case (both times), I had a check for the proceeds within 48 hours.
there are a few reasons they do this. first, this guarantees there are no liens or other encumbrances on the vehicle, as well as verifying that the title is not for a salvage vehicle.
Barrett-Jackson also goes out of their way to verify the cars are what they are represented to be.
for example, many of the 60s-70s GM muscle cars are hard to document, as a 4-4-2 package, or SS package is not represented in the VIN number. there are certain ways this can be verified, and they do them. they have no problem selling a car as a "clone", but it is always represented as such.
AZMike
DKB_SATX 11:25AM (1/11/2008)
Ugh... well, not that I have anything Barrett-Jackson would be interested in selling, but it's nice to know that, I'll never sell something that way. I'm not going to sign over the title for "whatever we happen to get, less our commission, that we'll pay you in a few days." If he signed over his title and THEN chained up the car, he is indeed a crackpot on the level of the DC administrative judge who sued a dry-cleaner for millions over a pair of suit pants.
DKB_SATX 11:28AM (1/11/2008)
.
Mr. Oak 11:29AM (1/11/2008)
AZMike: Thanks for the in depth explanation. Of how the auction operates. Big fan of the auction, more of the cars than anything else. I also love when a great\highly desired car rolls across the block and results in an all-out bidding frenzy.
Now, I think I have a better appreciation of what Barrett-Jackson.
AZMike 11:50AM (1/11/2008)
DKB,
this is really no different than having a no reserve auction on eBay, with one very large exception:
unlike eBay, Barrett-Jackson is not an uninvolved middleman. they guarantee the seller they will be getting their money, and the buyer they will be receiving a clear title to the vehicle they purchased.
there would be no way this could be done without Barrett-Jackson having the title in advance. in many cases, the buyers and sellers are not even present. in the cases of the two cars I sold at Barrett-Jackson, (January, 2003, Scottsdale, March, 2003 Palm Beach, both Buick Reatta convertibles) I never even met either buyer.
AZMike