Two recent cases that attracted a lot of attention seem to involve different issues, but they actually have a lot in common. In one, SCM and ACC contributor John Stein brought to our attention a recent fire in a Sacramento repair shop that destroyed a number of Porsches. In the other, SCMer Joel Gardner shared a very lengthy Internet chat-board thread about a Ferrari FF that was damaged while being driven by a dealer’s employee.
The Sacramento shop Read More
Several years ago, “Legal Files” reported about the litigation surrounding 1954 Ferrari 375 Plus, s/n 0384AM (October 2010, p. 30). The 375 Plus, one of six made, was well-known in the hands of Jack Swaters, the Belgian former race driver and Ferrari importer.
Karl Kleve, an atomic scientist who worked on the Manhattan Project, claimed that the 375 was stolen from him. Both men have since died. Kleve’s position passed to his daughter, Kristine Kleve Lawson in 2003, and Swaters’ Read More
Last month’s Legal Files suggested that there are epidemic proportions of “matching-numbers” Corvettes (and other cars) that really aren’t matching-numbers cars.
That attracted a lot of attention and comments, but what people say is not as important as what they don’t say. No one said the suggestion was sometimes wrong.
First, let’s put “matching numbers” into perspective. Say we have a 1965 Pontiac LeMans with a 4-speed transmission. We source a correct 1965 Pontiac 389-ci GTO motor, a Tri-Power setup, Read More
“Joe” wanted to get into the collector car hobby. After kicking a lot of tires and spending many hours on the Internet, he came across a Southern California dealer offering a car that he had always wanted — a 1962 Corvette Roadster. The car was a matching-numbers example with 48,000 miles, a 327-ci, 360-hp engine, factory fuel injection and a 4-speed. It also looked great in Tuxedo Black. He went to the dealer, test-drove the car, and thought it fit Read More
We thought it was odd that our client’s Mercedes-Benz dealer was threatening to sue him for wrongfully exporting his car in violation of his agreement that he would not do so, exposing him to substantial liquidated damages. As we got into the case, we learned that this was a really big deal across the United States.
Luxury-car manufacturers (Mercedes-Benz, BMW, Land Rover, Porsche and Lexus) are worried about a growing U.S. cottage industry that buys their new cars in the Read More
We recently reported on the status of a lawsuit involving the Briggs Cunningham Corvette, which is ongoing (December 2013, p. 40 and January 2014, p. 42). Domenico M. Idoni, one of the plaintiffs in that case, is now the plaintiff in another lawsuit involving another Corvette, the “Real McCoy.” That’s either bad luck or quite an appetite for litigation!
The story is taken from the parties’ court filings.
The Real McCoy is a 1956 Chevrolet Corvette SR prototype that Chevrolet Read More
The 2014 Scottsdale auctions showed that many collectors are taking advantage of the hot market and selling cars for record prices. But many of those collectors are also learning that we are in an era of high income tax rates.
So, how can collectors minimize the tax costs?
Basic tax principles
Let’s start with some basic principles. The gain on the sale of your collector car is the difference between your net sales price and your income tax basis.
Your Read More
An SCMer wrote asking about potential liability if he sells his vintage Formula One car and the buyer is later injured as a result of a defect in the car. He knew he could clearly state that the car was being sold “as is” but wondered if that would be sufficient.
He was particularly concerned because vintage parts are not readily available and often have to be built from scratch, creating greater risk of design and manufacturing defects.
One’s first Read More
Since a 2001 Porsche Boxster S resides in the “Legal Files” garage, this letter from noted Porsche authority Pete Zimmermann caught my attention:
Dear Legal Files:
It appears that Porsche has a problem. A really big problem. All because of a bearing, to be exact, an IMS (Intermediate Shaft) bearing. That bearing is an internal engine part, and it fails. Repair cost can range between $3,000 and $20,000-plus.
Unlike past engineering mistakes, Porsche ignored the IMS bearing problem for far Read More
Last month’s “Legal Files” (December 2013, p. 40) reported on the conflicting ownership claims to the Briggs Cunningham #1 Le Mans Corvette.
The claims of plaintiff Dan Mathis Jr. took an unexpected turn when defendant Kevin Mackay’s attorney discovered that Mathis had failed to mention the Corvette when he filed bankruptcy. That put his bankruptcy trustee in control. The trustee was set to auction Mathis’s rights on October 15.
Mathis’s partners, Idoni and Borelli, had submitted a bid of $25,000, Read More