Interesting court decision ...

[Fessia fancier]

.....giving some insight into classic car deals at the high end of the market.

https://www.bailii.org/ew/cases/EWHC/Ch/2021/2452....

(and obviously many other issues)

[Mikebentley]

Any chance of an outline of the case. Reading the whole thing could be a thread killer.

[Fessia fancier]

Fair point, though I don't really have time to give an in-depth commentary and have only skim read.

It revolves around the buyer of the Violati collection (which included the last 250 GTO sold at auction, I think), finance obtained to buy the collection/owning company, auction of the cars at Brooks and a wide range of allegations made by the buyer about the financing and auction process, a settlement agreement and a question as to whether that concluded all claims. The court made findings on these issues.

What is probably more interesting is the contemporaneous accounts of various sales which did/did not happen. JD Classics also make an appearance in passing.

[Mikebentley]

Thanks. It does seem to be an industry rife with shady practices. I’m selling my XK140 FHC at the moment and it does make me nervous.

[Fessia fancier]

Yes I think that is a concern. It isn't really the core focus of that case, though a Le Mans XK 120 sold by JD made an appearance and I seem to recall that mentioned in the Tuke case.

[Truckosaurus]

It is heartening to see that even in the world of multi-million dollar motorcars the owners are commiting to buy cars without the means to buy them outright and then having to scrape together dubious finance packages and part exchanges just like us regular scummers.

[neutral 3]

Bunghams acted dishonestly, well I never......

[neutral 3]

Fessia fancier said:

Yes I think that is a concern. It isn't really the core focus of that case, though a Le Mans XK 120 sold by JD made an appearance and I seem to recall that mentioned in the Tuke case.

Was it an XK150 that kicked off the Tuke case ?

Edited by neutral 3 on Wednesday 22 September 16:43

[Fessia fancier]

Possibly but there were so many cars involved I can’t recall for sure

[Truckosaurus]

Had a longer read of the linked page last night, some proper wheeler dealing taking place on some of those deals (eg. swapping engines between cars to increase the value etc) plus some comedy "the nasty Dutchman shouted at me on the telephone"

As an outsider it seems odd that the original Italian collection/museum did a deal to sell the cars to someone who didn't seem to have the money upfront and was just going to sell them anyway. Why couldn't the museum just deal directly with one of the many auction houses or another museum (perhaps a well known one in the Netherlands)?

Is there also a link to the Appendix documents that listed the cars involved?

[anonymous-user]

Mikebentley said:

Any chance of an outline of the case. Reading the whole thing could be a thread killer.

Final few paragraphs. With the exception of one claim against one particular defendant, everything was thrown out because it had no chance of succeeding.

[Fessia fancier]

BlackWidow13 said:

Mikebentley said:

Any chance of an outline of the case. Reading the whole thing could be a thread killer.

Final few paragraphs. With the exception of one claim against one particular defendant, everything was thrown out because it had no chance of succeeding.

That was my understanding too, part of the reason being that there was already a settlement agreed between some or all of the parties.
I did only skim read, though.

[Willhire89]

BlackWidow13 said:

Mikebentley said:

Any chance of an outline of the case. Reading the whole thing could be a thread killer.

Final few paragraphs. With the exception of one claim against one particular defendant, everything was thrown out because it had no chance of succeeding.

The remaining conversion aspect appears to relate to a currency swap which MRL potentially missed out on and could go to trial - that's tiny.

As you say apart from that all MRL's claims were thrown out as baseless although neutral3 and his persistent dislike of Bonhams will not want to highlight that. I too fail to see why the original collection gave MRL the exclusivity when all the purchase money even including their deposit was borrowed - maybe they just wanted a quiet life.

Macari and Williams both 'threatening to sue' because the side sales to them fell through is also pretty fanciful - sales fall through all the time.

[neutral 3]

I only skim read it as well, but apparently Bunghams and Louwman have been in bed together for many years.

[Fessia fancier]

I think he may have been a director there too

[Anoymously101]

I think Evert Louwman supported Robert Brooks in his setting up of Brooks auction house in late 80s. Brooks then merged / took over Bonhams, but used the Bonhams name. because it was more established and known outside of motoring. Robert Brooks sadly passed away recently.

Jon

[Mondrian]

Truckosaurus said:

As an outsider it seems odd that the original Italian collection/museum did a deal to sell the cars to someone who didn't seem to have the money upfront and was just going to sell them anyway. Why couldn't the museum just deal directly with one of the many auction houses or another museum (perhaps a well known one in the Netherlands)?

What is backhander in dutch!