Warning: Non-lawyer here... But the idea that the insurance company advised ML about how to proceed with the auction is absurd. That didn't happen. JP either made that brilliant decision himself or was advised to by his legal counsel and followed their advice. The insurance company isn't going to weigh in on how they should proceed. At most, they miiiight have said they would accept the hammer prices as market values, but I highly doubt an insurance claim has even been filed yet, let alone processed and approved.
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If it's not perfectly centered, I probably don't want it.
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