Lawsuit alert!

It was filed by Donald Spence back in November 2020 against Common Cents Coins + Collectibles and Bradley Dutro...and involves...wait for it...

...an allegedly counterfeit 1986 Fleer Jordan PSA 10!

The defendants here operate a website and eBay store that sell, among other things, trading cards.

Between late 2016 through mid-2017, defendants posted for sale a purported 1986 Fleer PSA 10 MJ Rookie card. Defendants represented the card was "original" and "PSA 10" grade.

Spence purchased that card for $19,999.99.

Two years later, Spence saw the prices of similar PSA 10 cards were selling for $85,000-$90,000, and therefore decided to sell his card for quite a hefty profit.

To do so, he retained Memory Lane to auction the card for him.

Memory Lane suggested that as part of the process, the card should be placed in a new holder to make it more attractive.

You can guess what happened next.

Yep. PSA got back to Memory Lane/Spence and explained that the card was "not an authentic PSA-graded item" and that "the entire product is fraudulent."

Yeah...at this point it is OK to throw up in your mouth a little bit.

Allegedly the plastic folder and PSA label had been tampered with, and both the PSA label and card inside were fraudulent.

After learning the Jordan PSA 10 was a fake, Spence contacted the defendants and demanded a return of his purchase price $19,999.99 plus 10% per year interest due to loss of increase in value of the card.

Obviously, the parties were unable to resolve the case amongst themselves...so here we are...in a Texas federal district court.

From my review of the complaint, I like Spence's position. It appears at the time he bought the card, the defendants website and eBay store offered "100% Satisfaction Guaranteed" and "Hassle Free Returns"...

...and although for this particular item defendants indicated there would be no returns, they did qualify that with unless the card was "misrepresented in any way."

I think that puts Spence in good position to at a minimum get his $19,999.99 back...hard to say this card was "original."

Now, because this case was filed in November, we actually have the defendants' answer as well so we can glean a little bit of their position.

For the most part, the answer simply "denies" each of Spence's claims (it does not need to go into any additional detail at this time), BUT, what I found most interesting was the affirmative defenses that were pled:

1) Mutual mistake and 2) criminal act of unknown third party.

In other words, the defendants claim that since both parties allegedly did due diligence on this card and were happy with the result, they shouldn't be responsible for the loss.

What exactly the "due diligence" was will need to be fleshed out more...but it's an OK-ish defense.

The defendants' other defense is that the real wrongdoer here is an unknown third party from whom the defendants received the card.

So, it would appear from the pleadings that the defendants contend they did not create this counterfeit card; they were duped as well.

Who will win?

Well, while I like these defenses, I turn back to the website which stated if the card was misrepresented, there could be returns. And if the card is fraudulent...hard to say it was not misrepresented. Maybe not intentionally misrep'd...but misrep'd nonetheless.

So I think Spence has a really good chance of at a minimum getting his money back. It'll certainly turn on what happened in the "due diligence" process...but regardless, it's hard to say this card was not misrepresented...even if just unintentionally.

I'll follow this case closer in the future, but in all likelihood it'll end with a confidential settlement...and Spence receiving more than $19,999.99 for his troubles.

Now, the REAL ISSUE here is since I collect cards involved in lawsuits...do I have to buy a PSA 10 Jordan rookie?

Yikes!

And highly unlikely.

That being said...if anyone wants to sell me a fraudulent PSA 10 of this card on the cheap...I'd be in the market for that!

Thanks to @sabrgeek and @35auburn for the heads up on this case!