a560156

Barrett-Jackson Auction Company Announces Settlement of Defamation Suit

Scottsdale, AZ. January 9, 2008 --Officials with the Barrett-Jackson Auction Co. LLC, today announced that a settlement was reached on Jan. 7, 2008, in a suit filed against David L. Clabuesch in U.S. District Court in Arizona. In the settlement, Clabuesch exonerated the Barrett-Jackson Auction Company of all allegations of wrongdoing in relation to a situation that occurred at the company's Scottsdale event in January 2007. Details of the financial terms of the settlement were not disclosed.

"We're pleased to have reached a successful resolution and to put this matter behind us," said Steve Davis, president of Barrett-Jackson. "While we regretted having to take the extreme step of filing a lawsuit in this matter, we had no choice but to aggressively defend our integrity and the fairness of our company's business practices. This action was necessary to protect not only our own interests, but also those of the thousands of bidders and consignors who place their trust in us each year."

The lawsuit arose from circumstances surrounding the sale of Clabuesch's vehicle at Barrett-Jackson's January 2007 Scottsdale auction. Unhappy with the price paid for the vehicle, Clabuesch locked and chained the tires after it was sold, and attempted to prevent delivery to the new owner. Clabuesch also posted numerous signs in and around the vehicle expressing his opinions about Barrett-Jackson and the company's auction practices. Visible in one of the most high traffic areas of the auction site until removed by the company's security officer and local police, the signs were viewed by the company's customers and members of the public attending the event. Shortly after the January 2007 incident, the company was faced with responding to numerous defamatory rumors and untrue statements related to the Clabuesch incident, which were published on various Web sites, blogs and online chat rooms.

A settlement was mediated on Jan. 7, 2008, by former Superior Court judge Rebecca Albrecht. In connection with the settlement, Clabuesch issued a written, notarized statement that reads:

"Upon review of auction video footage and further consideration of the relevant facts, I, David L. Clabuesch, have concluded that with respect to the January 20, 2007, auction of my vehicle - a 1970 Plymouth Hemi-Cuda - conducted by Barrett-Jackson that I can no longer pursue any action alleging auction irregularities, including the claim that the car was short hammered while on the block. I have also determined that there was no relationship between Barrett-Jackson and the buyer of my vehicle, nor was there any conspiracy between Barrett-Jackson and the buyer of my vehicle, or any other person, to short hammer the sale of the car. I no longer believe that Barrett-Jackson violated the terms of the consignment agreement in conducting the auction sale or otherwise breached any duties to me as a consignor."

Davis concluded, "On the brink of the most exciting automotive lifestyle event in our history, we've demonstrated that Barrett-Jackson upholds the most ethical business practices in the collector car auction industry and that we will take the steps necessary to defend those practices when we are compelled to do so."

Copies of Barrett-Jackson Auction Co. LLC et al vs. David L. Clabuesch et al, US District Court for the District of Arizona, Case No. CV07-561-PHX-EHC can be obtained by contacting the clerk of the U.S. District Court in Phoenix or at www.azd.uscourts.gov. A copy of Judge Clabuesch's statement can be read at www.barrett-jackson.com/statement.

Shurshot

IMO the owner found out the hard way about the "current market" and the risks behind "no reserve"

Doug

bigearl56

Who got what!

1-2-b-67L89

If memory serves me wasn't the owner of the hemi cuda (Ol' Ramchargers car was it not) a judge?
Kinda scary of our judicial system

korvette kenny

Yes but not in Arizona

67TBowl

I seem to remember that the Ramchargers Hemi Cuda was sold last year at BJ for $300k and the owner felt that it was worth a lot more.

korvette kenny

Yes, thats the way it went down

Shurshot

I watched part of the original and for some reason the idea of it being a created clone of an original ramcharger sticks with me........ I would not bet the farm on that though

ricks327

Especially the "no reserve" part

SPLITRAY

Sounds like BJ paid him (maybe a significant balance he expected) to drop the whole thing????

Loren Smith

Or more likely paid their own attorneys to pound him into the ground until he cried "uncle."

1955 copper

They hammer people into going with a no reserve so that they can say they sold every car and guaranty them self's a commission for each car from seller and buyer . I would never enter at a no reserve .

53 Blue Flame Brett

I watched BJ's own TV show about this particular car. To me, it did look like they short gaveled the guy. I was watching last weekend and it looks like....if they really want to sell a car for high $$, they spend as much time as they feel they need until it sells, even though they state that they only have so many minutes to spend on each car. With this in mind, isn't it self serving of them?

They guy knew he had no reserve but felt he was short gaveled. I tend to agree with his thought process, after watching the replay of his car being sold. He learned the hard way about a No Reserve auction.

I would never sell one of my cars at BJ.

TopLess62

As I understand it, they almost force you to do a "no reserve" deal when you sign up to sell it.

Mike Terry

After doing a "no reserve" auction in the past I don't think you will ever see a reserve car go across there auction block again at BJ. The have about 3 or 4000 cars aply for the sale and they pick about 1000 cars for the auction. So why would they pick a reserve car to sell or try to sell if they can get a NO RESERVE car.

BOB WINSKI

I was there last year and i spoke to a few people who sold there cars. And they told me they would never do it again at a no reserve auction.One guy took a very big loss.Bob W .Going back this year with a group of my friends just to have a good time

BLee

I've watched it for several years now. About the only "bargains" I've seen have been some of the big buck street rods that went way under the build price and some of the older restored Caddies and similar cars. Other than that it seems to always be more money than brains.

BL

Jim Dillon

I agree with your assessment on the Friday thru Sunday cars but I have seen some of the Wednesday and Thursday cars go for what I consider real reasonable. I would consider buying on the early days or some of the BJ Florida early cars. The sellers do not get to choose which day, the early sellers are going home with more disgust than money in my opinion-Jim

capevettes

Nuisance suit settlement. Monetary figure was reached that satisfied the owner and now BJ can move forward with the Jan auction without this still pending.

zadspal

I really understand both sides of this. I don't like the idea of a No-Reserve if I'm selling a car. But B&J would have to much wasted time selling Reserve cars. If they only allow a certain amout of time per each car and wanted to do it with a reserve they could start the bidding at the reserve and if no bids were offered in the alotted time then Move On! I have see them short gavel many times and then other times they will keep flogging a dead horse trying to get more bids for someone like Reggie Jackson??? I personally don't care for all of B&J's butt kiss'in to some when others are run through like cattle. Classic car auctions are fun and there are too many other reputable auctions out there to settle for the Scottsdale event just because they are on the speed channel. I would like to read the opinion's of others here on the forum who have visited other auctions. How do they compare? Are they all about the same?