There was an interesting story put out by the Associated Press yesterday in which a man sued an eBay seller to force him to perform, after backing out following the end of the auction. Obviously of interest to me, given my ongoing issue with Premiere Props (see article “Premiere Props, Hollywood Roadshow, Auction Outcome Manipulation” and updates).
LINK to Associated Press
Court Orders Man to Complete eBay Deal
SYDNEY, Australia (AP) — An Australian court ordered a man to hand over a vintage plane worth about $215,000 after he tried to back out of an eBay auction, a newspaper reported Friday.
The New South Wales state Supreme Court ordered Vin Thomas to complete the deal after he changed his mind about selling the 1946 World War II Wirraway plane he had placed on the Internet auction site last year, the Sydney Morning Herald reported.
Peter Smythe, a Australian warplane enthusiast, was the only person to bid on the item, matching the $128,640 reserve price just moments before the auction ended in August last year.
But Thomas had already agreed to sell the plane to someone else for $85,800 more than Smythe’s offer, and backed out of the sale, the newspaper said.
Smythe took Thomas to court, hoping a judge would force him to follow through with the deal.
Judge Nigel Rein agreed, saying the eBay auction formed “a binding contract between the plaintiff and the defendant and … should be specifically enforced.”
LINK to Brisbane Times:
eBay sale is a sale, court rules
Asher Moses | August 3, 2007 – 2:40PM
There will be no more weasling out of eBay sales after a judge today ruled against a man who has been refusing to hand over a $250,000 vintage plane he sold on the online auction site.
In a case that reached the NSW Supreme Court, Peter Smythe sued Vin Thomas after he changed his mind on the sale of a 1946 World War II Wirraway plane after the eBay auction had ended.
The plane is understood to be one of five in the world still flying.
Acting judge Nigel Rein, handing down his judgment today, ruled against Thomas and ordered him to hand over the plane for the agreed amount.
The date of the handover will be decided next week.
“It follows that, in my view, a binding contract was formed between the plaintiff and the defendent and that it should be specifically enforced,” Justice Rein said in his decision.
The judgment sets a precedent for future cases and means eBay sales could now be legally binding.
A judge had last year ruled the plane could not be moved from its hangar in Albury until the dispute was settled.
Smythe, an Adelaide war-plane enthusiast, was the only person to bid on the item, matching the $150,000 reserve price just seconds before the auction ended in August last year.
But Thomas, a radilologist from Albury, had already agreed to sell the plane to someone else for $100,000 more than Smythe’s offer. Smythe took him to court hoping a judge would force Thomas to follow through with the sale.
Before the ruling was handed down, eBay spokesman Daniel Feiler was adamant that any decision would have no impact on public confidence in the auction site.
“It has always been our understanding that you are entering into a binding contract when you are listing an item and someone has made a bid on the item,” he said, but added real estate sales were an exception because bids on houses were only expressions of interest.
“If someone has a repeated behaviour of not purchasing or refusing to sell the item once the thing has ended, normally we’ll reach out and educate them in the first instance but if they then show a repeated habit of not fulfilling their commitments then they get suspended from the site,” he said.
Feiler added eBay sellers had the option to reject any bids before an auction closed and encouraged both buyers and sellers to examine feedback history before proceeding with a transaction.
eBay has 5 million Australian members and 17,000 of those make their primary living from selling there, according to ACNielsen.
The Temora Aviation Museum, which houses its own Wirraway plane, said a total of 755 were built in Australia between 1939 and 1946.
A spokeswoman for the museum said she had not seen the plane referred to in this case but estimated it was worth around $250,000.
Jason De Bord