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Construction Law
Fraud

Thomas M. Hall v. R.L. Spear Company; Coast Recording Equipment Supply, Inc.

Published: Jan. 25, 1997 | Result Date: Jan. 8, 1997 | Filing Date: Jan. 1, 1900 |

Case number: EC016270 –  $0

Judge

Carl J. West

Court

L.A. Superior Burbank


Attorneys

Plaintiff

Thomas M. Hall

Thomas G. Sellers


Defendant

Eric F. Edmunds

David Romley
(Law Offices of David Romley)


Facts

Prior to becoming an attorney, plaintiff Thomas Hall, was an audio, video and television technicican. Defendant R.L. Spear Company is an auctioneering and liquidation firm. On Dec. 5, 1993, Spear held an auction of professional audio equipment in West Los Angeles. Spear initially advertised the auction as a bankruptcy liquidation by a Chapter 11 trustee of an insolvent sound studio known as JDH, Inc. Defendant Coast Recording Equipment Supply operated a retail store in Hollywood at which it sold new and used professional audio equipment. Although Spear's auction on Dec. 5, 1993 was planned as a JDH, Inc. bankruptcy liquidation auction, the trustee cancelled the auction. Spear went ahead with the auction, taking consignments of audio equipment from other consignors. Defendant Coast heard about the auction and consigned a lot of used items from its store. One item was an Electrosound 8-track recorder. Coast instructed Spear that it was placing a $3,000 reserve price on the Electrosound. The other item was an Aces 24-track recorder. Coast instructed Spear that it was placing a $5,000 reserve price on the Aces 24-track recorder. The day before the auction, interested bidders were invited to attend the pre-auction inspection at the auction site. Plaintiff Hall saw an Ampex 440-B recorder among the items to be auctioned the following day. Hall attempted to inspect the inside of the Ampex recorder by removing a cover plate. He testified that while he was trying to remove the cover plate to inspect the inside of the recorder, a representative from the auctioner told him that he was not permitted to remove the cover plate. Hall attended the auction the following day. He was the high bidder on the Ampex 44-B recorder at $137.50 and was awarded that item. Upon the auctioning of Coast's Electrosound 8-track recorder, Hall was the highest bidder at $1,000. However, the auctioner announced that the consignor had placed a reserve price on the item and he did not sell it to Hall. Upon the auctioning of Coast's Aces 24-track recorder, Hall was the highest bidder at $1,500. However, the auctioneer announced that the consignor had placed a reserve price on it and did not sell it to Hall. The following day, Hall went to the auction site to pick up the Ampex recorder and some other items that he had purchased at the auction. He asked the auctioneer for the name of the person who had consigned the Electrosound and Aces recorders. The auctioneer told him that it was Coast Recording. Hall then went to Coast Recording and attempted to purchase the Electrosound and Aces recorders directly from the consignor. The plaintiff brought this action against the auctioneering firm and the consignor based on fraud, breach of contract and declaratory relief theories of recovery.

Settlement Discussions

The plaintiff made a settlement demand of $100,000 from Spear and $50,000 from Coast. While the trial was trailing, Spear made a cost-of-defense settlement offer of $20,000 and Coast made a settlement offer of $5,000.

Damages

The plaintiff sought $______________ in damages.

Other Information

The decision was rendered approximately two years and one months after the case was filed. SETTLEMENT CONFERENCE: A mandatory settlement conference was held in November 1995 before Judge Stoll. It did not resolve the matter. At the conclusion of the plaintiff's case, the court granted the defendants' motion for judgment in their favor under C.C.P. 631.8. POST TRIAL MOTIONS: Both defendants have filed motions for sanctions under C.C.P. 128.5.


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