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MWI very much agree with Adam. I think the burden of proof will be much greater for PSA than it will for Dan. Also, should this "case" end up in a courtroom, I DO think that Dan's testimony (at least in terms of content) will be very straightforward and believable.
Dan, my advice, if you choose to go the legal route, is to begin a process (usually takes about a month) of searching for the proper individual and law firm to represent you. Keep in mind that you may have to contact 20 or so law offices to find the proper attorney and that, after attorney's fees (should you lose), you may end up with nothing. I think that with a knowledgeable attorney from a well-respected law firm, however, you have a very good chance of winning (based on what I've read here) and recovering all of your fees and losses.
I should also note that even if you lose, PSA will probably do everything it can to avoid the bad publicity. If you decide to file a lawsuit and this case goes to trial (bench or jury), I can only imagine the negative impact it will have on the company (Collectors Universe) and the number of trade publications that will write about it. After all, it WILL be major hobby news since thousands of submitters will be potentially affected by the proceedings and decision.