OUTCOME: Jury Verdict including compensatory and punitive damages
This case arose out of the sale by Defendants to Plaintiffs of a 1969 Camaro Z-28 automobile. The Defendants knew but did not disclose that one of the identification tags on the car had been removed a...nd replaced with a different tag.
Consumer protection
Hansmeier v. Reyes
Jan 28, 2009
OUTCOME: Unanimous Jury Verdict in favor of Plaintiff
Des Moines, Iowa (1-29-2009) – Jury rules that seller breached contract when he did not disclose a 1969 Chevrolet Camaro Z/28 (VIN 124379L524309) did not retain its original engine.
In April 2004,... Defendant, David Reyes, placed a newly rebuilt, but non-original, restamped engine in the Camaro and placed the Camaro for sale through the internet auction website, eBay.com. The Defendant placed the vehicle up for auction with a “Buy it Now®” price of $35,000.00, over twice what he paid for the vehicle less than a year earlier when he purchased the Camaro from a co-worker. A key point in this case where that numbers on the non-original engine were stamped so well, that even the Defendant’s own expert witness on cross examination by Attorney Shook, at the trial could not tell they were restamped. No where in the description did the Defendant ever say the vehicle did not have its original engine and he never disclosed this fact.
Specifically, the Defendant advertised the car has being “Numbers Matching DZ302 Original,” “unmolested,” “low mileage,” and “as close to being a true survivor as any you’ll find.” The auction ended with the Plaintiff, Daryl Hansmeier of Davenport, Iowa buying the Camaro for $25,200.00.
It was never disclosed to Plaintiff that the engine in the vehicle was not the original engine, as a matter of fact, the engine restamping was not disclosed to Mr. Hansmeier until February 27, 2007 nearly three years after the sale of the vehicle.
In March 2007, the buyer, Mr. Hansmeier contacted noted classic car fraud attorney, Bryan W. Shook (Camp Hill, Pennsylvania) to help him resolve this matter. An inspection of the Camaro was performed by world-renowned Camaro guru, Jerry MacNeish (Eldersburg, Maryland). Upon inspection, Mr. MacNeish confirmed that while the Camaro was a genuine Z/28 model, it did have a restamped, non-original engine. Mr. MacNeish valued the car at $19,500.00 at the time of purchase, meaning that Mr. Hansmeier paid too much for the vehicle when he purchased it.
Local counsel, David Hellstern of the Kreamer Law Firm in West Des Moines, Iowa and Attorney Shook subsequently filed suit on behalf of the Plaintiff, Daryl Hansmeier and his wife for Breach of Contract, Fraud, Material Misrepresentation and Breach of Warranties.
A three day trial was held at the Polk County Iowa Courthouse on January 26-28, 2009 with the Honorable Chief Judge Arthur Gamble presiding. The Defendant, Mr. Reyes’, defense was that he and the Plaintiff, Mr. Hansmeier, had different meanings of the terms of the contract, namely the term, “Numbers Matching DZ 302 Original.” The Plaintiff put on the testimony of noted Camaro historian and chief judge of concours judging at the Camaro Nationals in Carlisle, Pennsylvania, Jerry MacNeish, who testified that the phrase, “Numbers Matching DZ 302 Original,” means, to someone in the market for a 1969 Camaro Z/28 that they are looking at a vehicle with its original 302 cubic inch engine with it’s original stampings. Mr. MacNeish stated unequivocally that a person without specialized knowledge would not be able to tell that the engine had been restamped and accordingly wouldn’t know that he had been deceived until someone told him.
The jury retired to the deliberation room early in the afternoon of Wednesday, January 28, 2009 and quickly returned a unanimous verdict finding that the seller, David Reyes was liable for breach of contract for failing to deliver to Mr. Hansmeier the 1969 Camaro he promised him, specifically, a 1969 Camaro Z/28 retaining its original, correct, numbers matching engine.