Latest development in Shanus v. REA

[Peter_Spaeth]

On Monday, REA filed a brief defending the sufficiency of its counterclaim against Corey for, among other things, libel. The libel claim was based on this post by Corey on Net 54 on May 6, 2010.

"Selling 19th century memorabilia at auction, even the really good stuff, can be very risky, unless you put a high reserve to protect yourself. The market for that material is often very thin, and if one or two big players either have the item or are not interested in bidding, the item can bomb. In the recent REA auction, for example, the sheet musics entitled the Live Oak Polka and the Home Run Quick Step did abysmally, selling for a small fraction of what they transacted for in the past. For those who collect that sort of thing, those sheet musics represent the pinnacle of 19th century chromolithography. They are quite rare and the particular pieces offered by REA were in exceptionally good condition for the issue. In the recent Heritage Auction, an N28 poster went for a steal, again much below what such an item has sold for in the past. It did have some condition issues on the borders, but the colors looked good and a good conservator could have made the item look practically brand new (which for posters seems only to enhance their value at auction).

When I look to transact 19th century memorabilia, I typically prefer private transactions, be it sale, trade or a combination of the two. Of course this requires a willingness to wait until the right party comes along, which I recognize may be not possible if there is a quick need for money. But if you have that flexibility, it is something to consider."

For context, this is a link to the complete thread.

http://www.net54baseball.com/showthread.php?t=123436

REA took the position in its counterclaim that this post "unfairly and improperly criticized REA's handling and the result of the sheet music sale" because the "past transaction" Corey referred to by way of comparison was "believed to be" one in which Corey had participated in a shill bidding scheme to inflate the price. (paragraph 14 of counterclaim) According to REA, Corey's post discouraged other potential consignors of 19th century memorabilia from consigning to REA without high protective reserves, and thereby damaged REA. (same cite)

REA has now filed an opposition to Corey's motion to dismiss the counterclaim. Responding to the argument that REA had not sufficiently alleged damages from Corey's post, REA now points to the fact that its sales in 2011 were lower by approximately $500,000 than in 2010. (page 14 of opposition to motion to dismiss counterclaim) REA also claims to have expended time in connection with efforts at "watching the bid process to detect shill bidding by Shanus' cohorts," which "translates to money." (same cite)

I have no knowledge concerning the facts of either the underlying suit or the counterclaim, but in my opinion, should the counterclaim go forward, REA will have a difficult time proving non-speculative damages. I would also say, purely as a matter of my own impression and opinion, that it seems unlikely on its face that Corey's post was intended to hurt REA. Rather, it appears to me to be commentary on the state of the market. It will be interesting to see how this lawsuit plays out.

[Matt]

Originally Posted by Peter_Spaeth

REA has now filed an opposition to Corey's motion to dismiss the counterclaim. Responding to the argument that REA had not sufficiently alleged damages from Corey's post, REA now points to the fact that its sales in 2011 were lower by approximately $500,000 than in 2010.

Leon - this is great fodder for advertisers - REA is claiming a post on the forum decreases their sales by $500k. You should be charging more for ads!

[calvindog]

Wow. All I can say is wow.

[phikappapsi]

It's upsetting this "children friendly hobby" has turned into such a big business amongst adults. Too bad so many adults forget this started with simple, innocent, tobacco ads targeted for children.

Ahh, the good ole days.

[byrone]

Homer Simpson and lawyer Lionel Hutz

Homer: "All you can eat--hah!"
Hutz: "Mr. Simpson, this is the most blatant case of fraudulent advertising since my suit against the film, “The Never-Ending Story.”
Homer: "Do you think I have a case?"
Hutz: "Now, Homer, I don't use the term “hero” very often. But you are the greatest hero in American history."

[travrosty]

Originally Posted by byrone

Homer Simpson and lawyer Lionel Hutz

Homer: "All you can eat--hah!"
Hutz: "Mr. Simpson, this is the most blatant case of fraudulent advertising since my suit against the film, “The Never-Ending Story.”
Homer: "Do you think I have a case?"
Hutz: "Now, Homer, I don't use the term “hero” very often. But you are the greatest hero in American history."

ha-ha.



mrs. simpson, where did your family go after you left the all you can eat seafood place?



we went fishing.


ladies and gentlemen, does this sound like someone who had all they can eat?

[Deertick]

Seems to me that in order to claim $500K in damages, they would have to show a net decrease in YOY sales of sheet music AND that it was directly attributible to the post cited.
As for ""claims to have expended time in connection with efforts at "watching the bid process to detect shill bidding by Shanus' cohorts," which "translates to money."", isn't that what they should be doing all the time, every time?

[iggyman]

REA rocks and is the mostest marvelous auction house in the entire world universe!

There, I just got the $500,000 back...........they should be good to go with this years sales. Leon, you can thank me later.

Lovely day...

[peterose4hof]

I must admit, I have virtually no knowledge of matters such as this, but my Common-Sense-O-Meter is telling me REA could never prove that Corey's comments were meant to be hurtful in any way.

[WhenItWasAHobby]

According to this link, the statute of limitations for libel in New York and New Jersey is one year:

http://www.statuteoflimitations.net/libel.html

If this is a recently filed counterclaim (beyond May 6, 2011), it would appear it was filed too late.