Shanus-REA suit

[Peter_Spaeth]

--------------------------------------------------------------------------------

After 7 years, this case recently went to trial, and the jury reached a verdict several days ago. I was able to download in PDF form the verdict sheet and the jury communication regarding punitive damages from PACER, but you would need a PACER ID to see them. If I can figure out a way to post the PDFs in full, I will.

In the meantime, this is what happened, based on my review of the publicly-accessible record which of course is all I know.

While there were several counts in Mr. Shanus' Amended Complaint, the only one that went to trial was Count II, which charged Mr. Lifson and REA (Robert Edward Auctions, LLC, which subsequently changed its name to R.L. Americana, LLC) with fraud, and specifically, with "engag[ing] in a systematic scheme of misrepresenting and reporting sales with the intent of artificially inflating the auction prices of items being offered for sale." The Amended Complaint alleges as examples of such items the "Origins of Baseball Letter" and the "Fashion Course Trophy Ball," and alleges that the purchase prices of these items in REA's auction were "false and fraudulent." Those two items, and no others, are mentioned in the verdict sheet.

The jury answered a series of questions tracking the elements of fraud, separately against each defendant. It answered all questions in the affirmative.

The jury awarded no damages against the REA entity, and $55,100 against Mr. Lifson. The jury also awarded punitive damages against Mr. Lifson of $52,900.

A couple of notes:

1. This has nothing to do with Bryan Dwyer.

2. This is a civil case and there may, of course, be post-trial motions and/or an appeal.

3. I don't know the evidentiary basis for the jury's findings. Beyond the pleading stage, most of the significant filings and even the court's summary judgment opinion were not publicly-accessible through PACER, which was frustrating to me as I tried to follow the case over the years. And the transcripts of the trial, though referenced in the PACER docket, are not publicly-accessible at this time.
__________________