Memory Lane sold cards they didn't have per SCD

[Lorewalker]

Originally Posted by Rhotchkiss

I do not have firsthand knowledge that ML received legal advice specifically to keep the auction running. Nor do I have firsthand knowledge of their insurance policy or what the insurance company may or may not have said. I have been told that ML has spoken with counsel, has spoken with their insurance carrier (who apparently ML believes will cover at least some of this), and is listening to the police who are overseeing an open and ongoing investigation. This is exactly how I think a rational person/business would proceed under these circumstances.

Here is what I would do... The minute I learned that my customers' property was stolen (the consignors are the true customer of an AH), I would have called the police. I also would have called my lawyer, and, given the size of the potential loss, I would have called my insurance carrier. Considering all the moving parts here, I would have taken strongly the advice of those advising me, including the advice, if any, of potential stakeholders (i.e., this is what an insurance company would become if they pay out a claim). At the same time, I would have done damage control by reaching out to all consignors and affected bidders, giving them whatever assurances I could and giving them as much facts as I was able to give considering the ongoing investigation.

Is there a perfect answer here? Hell no. Its a shit show -- $$ Millions of cards were stolen from a box delivered to, and accepted by, a Best Western Plus. These cards were part of an auction that had already started. Plus, from what I have been told, the police were optimistic they could find the thief and the cards before the auction ended, or even still today. So what does one do in this situation? Personally, I would listen to and act on the advice of others, most specifically my counsel (who I would trust over Adam W's message board legal advice/conclusions), and that is what I believe (but do not know) ML has done and is doing.

Its very easy to sit here, after the fact, judging from the safety of one's keyboard, the actions taken and difficult decisions made by the auction house under these circumstances. Time will tell how this all shakes out, but using simple logic, I think most would conclude that any rational business would solicit and act on the advice of counsel, listen the police investigating the crime, and seek guidance from their insurance provider. It follows, letting the auction play out must have been done for a purpose and, at least somewhat, at the recommendation of others. Perhaps it was done under bad advice, or because they thought they would have the cards, or for insurance purposes, or some other reason(s). But they made the business decision to continue the auction, and I bet dollars to dimes that decision was made after many conversations and hours of consultation.

What I think is most interesting/telling is that Powell (a litigator) and Darryl, both of whom won cards that were stolen, and me, one of the larger consignors to the auctions whose cards were stolen -- so both sides of the coin (bidders and consignors) -- dont take issue with how ML has handled this thus far, Nor does Scott, who runs an auction house, nor Howard, who is a dealer, nor Jeff nor Peter, both litigators and very knowledgeable and vocal in this industry/hobby.

Opinions are like assholes, and I have (maybe am) one just like the rest of us. And we are all entitled to them. So that's mine.

Ryan Hotchkiss

You replied to me but not sure all was intended for me. I have no stance on whether it was right or wrong to let the auction run. I think it is an interesting debate and I see both sides as having merit. I am not a bidder, consignor, auction house owner, law enforcement nor lawyer. It is a crappy situation and it is a damned if you do damned if ya don't circumstance.

My only judgement, which is really my opinion, was the decision by ML to ship 2 million dollars worth of cards to a motel where the true intended recipient was not due to show up for a few more days, was probably not the greatest idea they have had. The cards are secure at ML but not a motel front desk.