Legal Files (73)

Maybe, if you have a valid out-of-state title for a modern kit car and can get an SB 100 "free pass"-but don't try it with a "Born-Again" post-1967 MiniLegal Files" was recently contacted by an SCM subscriber who thought the current economic climate made this the right time to buy a replica 1965 Ford GT40 and had found a nice one at an acceptable price. The car was originally titled in California but had since left the state. When our subscriber asked California's DMV about bringing the car back, he was told he would have to reapply to register it…
It's pretty easy to conclude that the FBI should have hired a towing company. That the car was wrecked proves the agent was incapable of driving itWe all know that federal, state and local governments have broad powers to seize assets from drug dealers and other persons suspected of crimes. Lately, there have been a number of seizure situations involving valuable cars that have gained widespread media attention. In today's media world, the seizure of a Bugatti Veyron, six- or seven-figure Ferrari or Lamborghini or the like is an instant attention-grabber. But sometimes, the story gets even better when things…
Police return Hallingby's seized Ferrari; he files a $5 million lawsuit against magazines whose advertisements described it as stolenThe December 2008 "Legal Files" reported that 1958 Ferrari 250 PF Cabriolet s/n 0799GT was seized by the Connecticut State Police from the garage of noted car collector and long-time SCMer Barney Hallingby. On October 2, 2009, the Connecticut Superior Court of Littlefield County ordered the Ferrari be returned to Hallingby, described in the order as the car's "rightful owner." Hallingby, angered by the entire affair, has filed suit in the United States District Court for the Southern District of New York,…
The seller thought it was enough that the engine was the correct type, built the same time as the Camaro, and that its present number matched the VIN The market places a substantially higher value on "numbers matching" cars, especially in these challenging times. Collectors want the best. Here's a quick description of what "matching numbers" means. In addition to stamping a unique identifying number on each chassis (its VIN), every factory stamps unique identifying numbers on other components-usually the engine and transmission, often the differential, and sometimes the hood, doors, and various other body parts. The factory records generally…
The court ruled the buyer had opportunities to inspect the car before buying it and to call the seller to ask about the car, and chose to do neitherSuppose you have a not-so-nice collector car you want to sell for big bucks. Your best shot might be to list it on eBay or some other Internet web site. Here are some tongue-in-cheek tips about how to maximize your chances of cashing out at the top of your market:1. Post lots of pictures-it gives people the comforting sense that you are being candid about the condition of the car and that…
There's no uniform code of ownership within the EEC, but each country has documents that will protect you in your transactionAfter John Draneas's learned article (April, p. 34) on the title pitfalls of buying a collector car in the U.S., here's a European perspective. Or, as the exam question might have read: "How is your answer different if you were buying the car of your dreams in the U.K., France, Germany, Italy, Switzerland, or The Netherlands?In spite of the European Union (which doesn't include Switzerland, Norway, and Finland), each country still retains its own system of title, registration, and licensing…
We are addressing provenance created by the owner after a car's acquisition, and whether the costs involved can be used to reduce the gain on the saleMany collectors are selling cars they have owned for several years, often for substantially more money than they paid for them. In many cases, they purchased these cars years ago when they weren't particularly sought after or valuable, usually because they just liked the cars and wanted to own and use them. Now that the market has made them into very valuable assets, they are cashing in on their investments and finding that the…

Track Day Insurance

Written by July 2009
High Performance Driver Education coverage insures bad things don't happen to good people (that's you) during track daysHere's a man-bites-dog twist to track day crash liability concerns, resulting from a crash at a Dodge Viper Owners Invitational track event at Las Vegas Motor Speedway. Dodge sponsors such events periodically, and invites Viper owners to participate. The sessions include classroom instruction, track time, and professional driving school instructors.According to reports from knowledgeable sources, here is the surprising story. A novice (never before on any track) Viper owner, who just happened to be a state court judge, was paired up with an…
To rub salt in the wound, the appellate court rejected the Plaintiff's arguments that he should get a new trialA few years ago, I was in Los Angeles for a professional conference and had a free day, so I visited the Nethercutt Museum in nearby Sylmar. The museum is owned and operated by The Nethercutt Collection, a charitable foundation formed by J. B. Nethercutt, who along with his aunt had founded Merle Norman Cosmetics. After his death, his son, Jack, assumed control of the foundation.I will long remember the amazing facility, the free admission (thanks to the endowment from J.…
We were surprised to see that the Ferrari's title had Rick's signature forged on it, and the Italian shipping company was listed as the new owner.Dear "Legal Files": My husband Rick and I, along with our friends, have encountered a bizarre set of circumstances with Shakespearean elements of trust and betrayal, possible fraud and forgery, and even a hurricane. We think it will interest you.Having enjoyed ourselves immensely on the Copperstate 1000 and the Colorado Grand, the temptation to try an international rally was strong. When the opportunity to attend a vintage car rally in Italy came up last spring,…