Unique Performance owners sue the Old Man

[LURK]

Muscle Car Icon In Hot Seat Over Licensing Deal

FARMERS BRANCH, Texas (CBS) ―
station WCBS-TVIt started with an action movie. Then automobile enthusiasts from around the world started ordering one-of-a-kind muscle cars from a company called Unique Performance.

Now all of the cars have been sold at auction and some customers, who paid a lot of money for their vehicles, are suing automotive icon Carroll Shelby.

"I received a book from Carroll Shelby that was signed. I received a tarp for my car. I received a bunch of little stuff, but I never received my car," said Burleson businessman Mike Erinakes.

Erinakes said he paid Unique Performance $162,750.00 for a Shelby Mustang "Super Snake" endorsed by Carroll Shelby. Now Erinakes and numerous other clients are demanding Shelby reimburse them for their losses.

"I think he needs to make it right," said Erinakes. "He personally endorsed these vehicles. He was getting royalties off these vehicles. He needs to make it right with all the people out there who invested money with Carroll Shelby and Unique Performance."

Erinakes purchased a 1969 Foose Camaro from Unique Performance, and was awaiting delivery on the Mustang when detectives raided the business and confiscated 61 vehicles that were in various states of completion. Evidence collected from two criminal investigations has been forwarded to the Dallas County District Attorney's Office and the U.S. Attorney in the Northern District of Texas, CBS station KTVT-TV reported.

"No one would have ordered these cars if it wasn't for Carroll Shelby," said former Secret Service agent James Bartee, who has also filed a lawsuit against Shelby. Bartee said he ordered a Shelby Mustang GT 350 SR.

"I've always thought of him as an honorable person and a person that met his obligations so I wanted one of his vehicles before he left this earth," said Bartee.

Potential buyers from all over the world came to Farmers Branch to see the cars that Unique Performance was manufacturing. They were willing to pay up to $300,000 for a Mustang, originally built in the 1960s, bearing the Shelby name.

Carroll Shelby was an aviator in World War II, a race car driver, an automobile manufacturer and a consultant. It was the Shelby Mustang called "Eleanor" in the movie "Gone in 60 Seconds" that created a new frenzy for these custom-made muscle cars.

Erinakes said he was willing to pay $217,000 for the Mustang he ordered from Unique Performance. Carroll Shelby had a licensing agreement with Unique Performance, but pulled the agreement in October of 2007 when complaints and lawsuits started piling up. Shelby did not respond to our requests for a comment.

The 61 cars, in various states of completion, were auctioned online. One fast-back went for more than $19,000 and according to Sgt. Phillip Harris with the Texas Department of Public Service, the Shelby Mustang cars sold by Unique Performance were being sold for an average of $180,000.

Erinakes said he asked law enforcement detectives to examine the Camaro he purchased from Unique Performance.

"After the situation came up with Unique Performance in Farmers Branch I invited the Secret Service and the Farmers Branch Police Department to come by and check the serial number and check out my car voluntarily," he said. "They found it to be a legit '69 Camaro."

Unique Performance is in bankruptcy. The criminal investigation is on-going, but the partially completed vehicles sold at auction had no vehicle identification numbers or titles. So detectives say it's not known if they'll ever be legal to put on the road.


http://cbs3.com/consumer/Suing.Carro....2.690435.html

[RodKnock]

Oops, that thread title is a little misleading.

[LURK]

A little better?

[CHANMADD]

I understand being pissed at losing your money... but how does CS become liable for someone else's dishonesty? I know he licensed or endorsed the cars but he did not build them or take the money....or am I missing the whole thing?

[thudmaster]

I am still trying to figure out how Elenor became a Shelby?

[jmimac351]

Originally Posted by CHANMADD

I understand being pissed at losing your money... but how does CS become liable for someone else's dishonesty? I know he licensed or endorsed the cars but he did not build them or take the money....or am I missing the whole thing?

Good point. If he's not liable for his own dishonesty it's hard to argue he is liable for anyone else's.

[427sharpe]

Didn't he take the royalties? Endorse the scheme" Certainly he must share some of the responsibility, but to hit him as if he were the owner is over the top, but hey, "It's America, Babe."
I like these snippet:

"I've always thought of him as an honorable person and a person that met his obligations so I wanted one of his vehicles before he left this earth," said Bartee.



Talk about a sucker not doing his homework!!!

[427sharpe]

Originally Posted by thudmaster

I am still trying to figure out how Elenor became a Shelby?

Because $helby said so...that's how! A little magic dust here, a little there and PRESTO.....a GT500!!!

[jmimac351]

I'm no chicken farmer but it seems to me it's not that hard to hire some guys and bring it in house and do the right thing. After all, didn't he used to modify mustangs??? Heard that somewhere... Hell, I saw a HUGE hauler going up I95 heading out of town from Barrett-Jackson in Palm Beach the other day with "Shelby" all over it. Money is not a problem. He could charge whatever he wants for those cars and knowing they were actually "Built by Shelby" - people would pay it. I guess it's easier to just take your cut and if it turns rotten you can shrug your shoulders and walk away. Or maybe not even bother shrugging. It's not common that one man is able to squander that much good will. Finding people that really care about doing the right thing isn't very common either I suppose.

[Michael P. Wole]

I don't understand putting all the money up front on anything!!!!
I have put a down payment on cars, houses, and women but never paid in full up front.
I have built houses and done payments in stages of completion.
I wish I could get my customers to pay me up front when they order instead on 30-45 days after shipping.
If any of you guys want to pay me up front and finance your build get back to me please.
I am of the mind set that if you have a business you have an investment in your company. Please get back to me soon as I am leaving for Hawii in about 22 hrs and could use some extra pocket money.

[CHANMADD]

Me too! All the money up front on that kind of deal sounds very brave to me.
When I build cars I take "draw" money as the project progresses.

[Chaplin]

Originally Posted by CHANMADD

I understand being pissed at losing your money... but how does CS become liable for someone else's dishonesty? I know he licensed or endorsed the cars but he did not build them or take the money....or am I missing the whole thing?

Absolutely correct. Since Unique filed for bankruptcy and there is no hope of collecting from them, these people are just looking for someone with deep pockets to try and recover some $$. Unfortunately for CS, he is the only target left with big pockets and therefore is now a defendant, regardless of whether he is at fault or not.

[Bxx1]

Originally Posted by Chaplin

Absolutely correct. Since Unique filed for bankruptcy and there is no hope of collecting from them, these people are just looking for someone with deep pockets to try and recover some $$. Unfortunately for CS, he is the only target left with big pockets and therefore is now a defendant, regardless of whether he is at fault or not.

I am not an attorney, but I play one on the internet, and I agree with that statement.

I approve of this posting.

[427sharpe]

[quote=CHANMADD;831114]Me too! All the money up front on that kind of deal sounds very brave to me.
QUOTE]

Guys fell in love with the idea and forgot to do the homework. I cannot imagine anybody who had done the research over 'The automotive icons' post-60's ventures would be too willing to ante up in full before delivery. As far as 'The Legendary Designer' goes, I don't feel he is responsible to these suckers, errr....buyers, but Momma always told me 'birds of a feather flock together' and whatever turkeys are flocking with the chicken hawk are due some serious scrutiny before handing them your greenbacks...especially over 100,000 of them! 'Course it's easy to say from where I sit....my $ is still where it belongs.

[RodKnock]

The proof is in the contract between Unique and Shelby. If there are insurance companies involved and/or indemnification clauses missing, then someone is gonna come collecting.

[Excaliber]

Shelbys name was the claim to fame, he has to take some of the blame. He's gotten away with rotten deals for his entire career, it's time someone stood up and said, "Enough is enough".

Do you think Shelby really cares about YOU, the individual? Your mistaken, he cares about what you represent to him, money. Shelby is a 'friend' you can buy, not a friend who will stand by you if it hits the fan. It's not even 'sad' anymore, it's disgusting.

[John McMahon]

Originally Posted by Excaliber

Shelbys name was the claim to fame, he has to take some of the blame. He's gotten away with rotten deals for his entire career, it's time someone stood up and said, "Enough is enough".

Do you think Shelby really cares about YOU, the individual? Your mistaken, he cares about what you represent to him, money. Shelby is a 'friend' you can buy, not a friend who will stand by you if it hits the fan. It's not even 'sad' anymore, it's disgusting.

Ernie,

I just picked my Cobra R up at the paint shop...it looks like your signature has ended up on the back of my car!

[Excaliber]

Indeed! I have several of those bumper snickers at my house, got them from SAAC. I was recently tempted at a local 'cruise in' to sneak up to a nice new Shelby Stang and slap one on the back when the owner wasn't looking. But, well, I chickned out.