SAN FRANCISCO – The 1st Appellate District Court of Appeal, Division Two partially reversed a judgment in a lawsuit centering on a contract dispute between The Collings Foundation and Auctions America By RM Inc.
The court agreed with Auctions America that the judgment by the San Mateo County Superior Court was not supported.
“The judgment is reversed in part, and the matter remanded with instructions to prepare a judgment that Collings recover nothing from AA on the cross-complaint. In all other respects the judgment is affirmed,” the filing noted. “AA shall recover its costs on appeal.”
According to the Aug. 17 filing by Justice James Richman, The Collings Foundation owned a Panzer IV tank and put it up for auction in July 2014 along with several other items. Collings had a contract with Auctions America to sell the tank, including the “exclusive right and authority to sell” the tanks 90 days after the auction, according to the filing.
When the tank didn’t sell at auction, the ruling states Auctions America was approached by bidder Vulcan Warbirds Inc., which had bid on the tank but didn’t meet the reserve, and they came to an agreement after the auction that Vulcan would purchase the tank for $2.5 million. Vulcan then sent a check for $2.5 million, but Collings declined delivery of the tank. Collings said it did not agree to sell the tank to Vulcan unless a replacement tank was found first, according to the ruling.
In September 2014, Vulcan sued Collings and Auctions America citing “causes of action for breach of contract, replevin, claim and delivery, declaratory relief, specific performance, and violation of Commercial Code section 2403. Vulcan sought damages, injunctive relief and the Panzer IV,” the filing said.
Collings filed a cross-complaint in January 2015 that was amended three times and sought declaratory relief and cited indemnity, breach of contract, breach of fiduciary duty violation of Civil Code section 1812.608 and negligence, the filing said.
The last amended cross-complaint was filed April 22, 2016, to which Auctions America filed its answer on July 5, just a week before trial, according to the filing.
The case went to trial and the San Mateo County Superior Court ruled in favor of Vulcan and granted it possession of the Panzer IV. The court also addressed Collings’ cross-complaint and ruled in favor of Collings against Auctions America for contract damages consisting of $346,969 for the sales of items other than the Panzer IV and "$250,000 for the buyer’s premium that Collings would have been entitled to receive under the Auction Agreement and Addendum,” according to the filing.
The decision was appealed by Collings and Auctions America and the appellate court ordered that the appeals be consolidated. It concluded with a partial reversal of the judgment.