Russo & Steele Fraud and Breach case

[jayscobras]

In 2009 I consigned a car to Russo & Steele. Since that time I have been in legal proceedings against them until now. The case has gone through arbitration (their rules) and the arbitrator with American Arbitration Assn. has ruled. The ruling is now public record in Maricopa county Arizona.

I am going to tell the readers digest version but I suggest that if you have an interest in knowing the truth in detail that you email me directly at jdcobra427@sbcglobal.net. The actuall ruling is 28 pages and tells the entire story form a legal standing.

At the auction Russo & Steele allowed an unvetted or qualified buyer bid and purchase 16 cars totalling 1.3 million. By the end of day two or friday night they knew about his deceit and course of action which was to "kick" the cars for various reasons. All of the car owners but one were left hanging for weeks while Russo went after their commisssions but NOT the sales. One car owner was piaid for his car. The rest were told that they had to take them back which they did. When they told me this three weeks later I refused.

I went after the buyer and in the process I found out the truth of the whole thing. I filed suit against Russo for the following:

1. Failing to adequately determine buyers ability and fitness to bid on and pay for the vehicle despite representing they would.
2. Allowing the buyer to rescend the purchase on false petenses.
3. concealing and/or failing to disclose material information within a reasonable time that the buyer was unfit or unable. since they knew the very day of the sale.
4. Damaged the vehicles paint and body following the sale.
5. Placed Ruysso's interest ahead of clients interest.
6. Fraud
7. Breach of fiduciary reponsibilities.

The Arbitrator found the following( some of them)

" In light of the foregoing, the arbitrator finds that the weight of the evidence supports the conclusion that respondent breached its fiduciary duty to claiment". "And further, respondent misrepresented and concealed the true facts from the claimant."

"arbitrator further finds that the clear and convincing evidence supports that the repondent misrepresented ( fraud) the true facts to cliamant as what had transpired with his vehicle at the auction, its services with respect to its agency relationship with claimant and continues to conceal and fail to disclose acts and events following the auction(a fraud)"

"The arbitrator finds that the claimants evidence satisfies the requisite elements of common law fraud".

"The arbitrator finds the repondent to have breached the consignment agreement with claimant and the related duties owed to its principle, to have made representations to claimant and concealed or failed to disclose material information to claimant and, in those matters, committed fraud against claimant as its principle".

Sorry for the length but is was a 2 1/2 year battle. The actual 28 pages is much better reading.

Needless to say, BEWARE

Jay

[Anthony]

So,

How much did it cost you? fees + repair
How much time did you put into it?
How much compensation were you awarded?

[jayscobras]

Anthony no repairs, Russo has to take the car. The repaint would have been 35,000. I'm out a little over 200k in fees and only 100k being repaid plus I have to go after the payment awarded. In all I will lose about 125k to prove a point and maybe save someones rear.

They have been doing this for too long.

Jay

[392cobra]

Jay,
What car of yours was this all about ?
Glad you caused them some pain.

[jayscobras]

Fred this was a custom 41 Cabriolet that I had bought. It was called The Masterpiece by some car magazines.

It wasn't just my car. it was the entire scam and attitude of the company. They have pulled stuff like this for ten years.

Here's a quote from their last written closing statement and on the last page last paragraph " this case reeks of surrogate littigation, funded by one of Russo & Steele's died-in-the-wool competitors".

I'm amazed that no one wants to have the award sent to them. Even though its 28 pages it IS the ruling and tells all.

Jay

[392cobra]

Originally Posted by jayscobras

Fred this was a custom 41 Cabriolet that I had bought. It was called The Masterpiece by some car magazines.

It wasn't just my car. it was the entire scam and attitude of the company. They have pulled stuff like this for ten years.

Here's a quote from their last written closing statement and on the last page last paragraph " this case reeks of surrogate littigation, funded by one of Russo & Steele's died-in-the-wool competitors".

I'm amazed that no one wants to have the award sent to them. Even though its 28 pages it IS the ruling and tells all.

Jay

Thanks for sending it. That was a VERY interesting read.

1st - Is that the same '41 that you had for a while ? Candy Apple Red ?


I REALLY enjoyed it when the Arbitrator got to the Punitive question.

He really got them nailed when he said (to paraphrase) they where evil,low life,lying scum and then levied a 50% level on the award.

You came out short on what I think the money should have been but you did the right thing.

I salute you Jay.

[jayscobras]

No I sold the red car about 5 years ago. I still miss it.

The bad thing about Russo is the 14 other consignors that didn't stand up to them. By the way all were sent copies of the ruling in todays snail mail

As well as every major auction company and every auto publication I could think of.

What is it that they say about payback?

Jay

[DAVID GAGNARD]

Originally Posted by jayscobras

No I sold the red car about 5 years ago. I still miss it.

The bad thing about Russo is the 14 other consignors that didn't stand up to them. By the way all were sent copies of the ruling in todays snail mail

As well as every major auction company and every auto publication I could think of.

What is it that they say about payback?

Jay

How about 60 Minutes, 20/20 and those type shows, they just might be interested..........
Sorry to hear about your problems with them Jay......

David

[392cobra]

email heading your way.

[fordracing65]

Things like that are whats wrong with the collector car business, its a shame that people are out money and time for the love of a car, or lack of.

[Anthony]

Jay,

I'm sorry to hear about your experience. Been there, done that, several times, but not with cars. Believe me, I understand your frustration, anger, hopelessness of the system.

Originally Posted by fordracing65

Things like that are whats wrong with the collector car business, its a shame that people are out money and time for the love of a car, or lack of.

Actually, it's things like that are what's wrong with business in general, in the US. The rules are designed, written, and approved into law by our politicians, ie lawyers. They have really screwed our system badly for everybody but themselves.

[Mark IV]

The "big dollar, high roller" auction companies have been dirty for a long time. Shill bids, poor seller payment records, misrepresentation of auction block crossing times, etc.

Lie with the snakes and you are likely to get bitten. It makes good TV to watch on Speed with a beer and a snack, but is a p!ss poor way to sell your car in many cases.

[Jamo]

Well done, buddy.

[jdean]

Professional crooks rely on the large margin of protection they are afforded by the high cost it takes for the average person to defend himself. It is a pure business decision based on calculated risk/reward.

Of course this only lasts until the word gets out that they are crooks and the business dries up. I hope that is the case here.

[LREYBURN]

I wouldn't mess with a Texan...expecially one that's been shot at, blown up, experienced life threatening issues like cancer and heart issues, and believes in and lives by the "Golden Rule". R&S, how do you spell GRIT?

[Jamo]

Originally Posted by LREYBURN

I wouldn't mess with a Texan...expecially one that's been shot at, blown up, experienced life threatening issues like cancer and heart issues, and believes in and lives by the "Golden Rule". R&S, how do you spell GRIT?

You forgot taquilla and raki snortin...

[392cobra]

Originally Posted by Jamo

You forgot taquilla and raki snortin...

Jay,
Have you switched to that low octane taquilla stuff ?
Kinda seems UnTexian to not stick with the good high octane Tequila to me.

[LREYBURN]

Okay. I had to look this one up. Jay, 'you snortin' this stuff? Do you do it with fruit? I think I know now why you requested "no-smokin'"...this sh!t is high octane.

The best way to drink raki, which is famous as the Turkish national drink, is with flat cylindrical glasses and cold (8-10 degree). One can drink it with water, straight, with soda or mineral water.
Although Raki which is a distilled alcoholic beverage strongly aromatized with lots of anise, it can be consumed as a cocktail, but more commonly it goes best with cold hors d'oeuvres. For example; Russian salad, garlic sauce, sliced tomatoes and cucumbers, cold-cuts, fried pastries, cold yogurt soup, brains, shrimp, mussels vinaigrette are followed by entrees such as shish kebab, mixed grilled meats, steak, fish (pan fried, grilled, in the oven) and finally fruit. The type of fruit does not meter. It can be any kind of fruit depending on the season. Especially in Turkey, melon and feta cheese are the best combination for accompanying raki.

[Jamo]

The nector of the gods, actually.

Around here we trade our moms' baklava to get a bottle of the homemade kind.

[jayscobras]

well not really, no one has yet.

Ron B. coded message I thank you for the compliment. It is always about good representation. Pit bulls in vests always stop crooks.

Jay