wow..this could hurt

IJustLoveCards

Former Collectors Universe Executive Wins $10.5 Million Verdict; Boudreau, Albert & Wohlfeil Represents Plaintiff
11/9/2005 8:03:01 AM


SANTA ANA, Calif., Nov 09, 2005 (BUSINESS WIRE) -- Boudreau, Albert & Wohlfeil LLP announced today that an Orange County jury awarded a former executive of Collectors Universe, William Miller, with awards that could total in excess of $10.5 million against Collectors Universe (CLCT). The jury found that Collectors Universe used Miller's name on 14,060 Certificates of Authenticity without his permission.


"We are grateful that the jury saw fit to hold Collectors Universe accountable for its actions," said Andrew Albert, lead attorney on the case and partner at the law offices of Boudreau, Albert & Wohlfeil LLP. "Their verdict is an important step in allowing Bill to reclaim his good name and to protect the public from false authentication services."

In his suit, filed August 2004, Miller alleged that Collectors Universe placed his name and signature on Certificates of Authenticity which indicated that he had examined items being authenticated, when, in fact, he had never performed a single authentication for the company's PSA/DNA Division, under which the certificates were issued.

Miller's suit alleged violation of his right to privacy by misappropriating his name. Under California Civil Code section 3344 compensatory damages of $750 per unauthorized use are presumed. In addition, court costs and attorney's fees are recoverable. The jury found that Miller had been harmed by Collectors' unauthorized use of his name.

The court has previously ruled in the first phase of the trial that for each unauthorized use of his name, Miller may recover $750. The jury also awarded Miller Collector's profits made through the use of his name. Attorney's fees may also be added to the judgment.

Miller said he feels vindicated by the clear-cut jury verdict. "It's horrible enough to have your name taken from you purely for someone else's financial gain, but it's another thing to be used as a pawn to deceive or even defraud the public. For the rest of my life, I will live with the uncomfortable feeling that at any time I might be held responsible for someone who authenticated an autograph I never looked at. When an item turns out to be not genuine, as we have already found to be the case in a number of instances, it's my name which will bear the responsibility and my reputation, carefully built over 15 years, which will be damaged."

SOURCE: Boudreau, Albert & Wohlfeil LLP

Heying & Associates
Jade Berggren, 619-295-9262
jberggren@heying.com


Copyright Business Wire 2005

mudflap02

So was this executive just out to lunch or on vacation while 15,000 certificates went out the door? He's not one of the names I usually associate with PSA/DNA either (Spence and Grad).

ldferg

wow! i wonder how this will affect psa itself? especially in the psa/dna area.

baseballfanatic

This is part of a huge read on the Richard Simon newsletter. Dont expect the thread to last very long.........

mudflap02

Pay no attention to the man behind the curtain....

fsjeter

"POOF"

Scott

julen23

That whole thing stinks to high hell...

Julen

stevek

I have little to no expertise on autographs but this just doesn't make sense. William Miller's name would mean nothing to me and I doubt would mean much to most people sending in material to a respected name such as PSA. I would send an autograph to PSA for authentication which would have nothing to do with William Miller. So why even use William Miller's name on the certificates if there was any possibility whatsoever of a suit such as this? This just doesn't make sense to me.

fsjeter

That Law Firm has been busy with CU this year.

Scott

wallst32

Richard Simon newsletter

ndleo

I think the problem is that the certs said that Miller looked at the items, when in fact he didn't.

The question is was this an honest mistake or intent to deceive? What happens to the people with the rogue Miller certs?

I think Miller only wanted money for using his name, I didn't see anything about the customers.

smallstocks

And the stock is getting hammered.

BigtimeBowmanfan

Well does this mean there are issue's with all of the auto stuff ? Why only use this guy's name ? What about the other authenticaters ?

baseballjeff

Let's just all keep a positive attitude about the whole thing, and everything will get situated just fine.

Bosox1976

That simon newsletter is fascinating and unsettling.

BigtimeBowmanfan

Again my problem is if they used Millers name without him looking at the item then why not do the same with the others ? This is bad very bad. How can we have any security in the authenticity of any auto ?

baseballfanatic

If anyone thought the people who sign the COA for PSA at the bottom actually looked at any of the items, you should know better. They are just the figureheads with a staff of employees under them. Did anyone actually also think Donald Trump troweled concrete or ran wires in any of the buildings his company built?

ndleo

baseballfanatic - Your analogy is incorrect. PSA/DNA is making money on the name and reputation of the authenticators. That is the problem Miller had, he didn't want his name used if he didn't look at the item. The jury agreed with Miller. No one who buys a Trump condo would reasonable expect that Trump actually got his hands dirty building it. However as a PSA/DNA customer, I would expect that one of the top authenticators actually looked at. If not, why even have PSA/DNA?

I am still curious what will happen to the 15,000 customers that were given illegitimate COAs.

baseballfanatic

My analogy IS correct. Do you actually think those 5 people actually look at 1,000 cards per day plus do the administrative duties? I think not....

baseballfanatic

The same goes for PSA grading. Who are these "card experts" that have the 9 to 5 job of grading cards? Dont you think these "experts" should have thier names published as "leading authorities".........?

IJustLoveCards

heres the problem with your analogy, when Trump is finished with a project he authorizes the use of his name on the hotel, golf course or whatever, in this case, this individual DIDNOT authorize the use of his name on the bottom of these letters, no matter what you may or may not believe, hence, he doesnt want to be associated with any type lawsuits that may come about due to his name being on the letter of authenticity. Any good lawyer that seeks to sue CU over a questionable authenticity, will also include all the names on the letter of authenticity in his suit.

baseballfanatic

Which is getting back to me saying that no one whose name is on the bottom of the letter actually looks at any items. If you read the Simon letter, which "expert" passed a Mark McGwire rubber stamped auto? A Roberto Clemente single signed ball with a PSA letter turned down when offered for resale by PSA because 3 signatures were erased? A Joe D auto with a PSA "signed in the presence" letter, turned down by PSA DNA quick opinion as unable to render opinion even though it had thier sticker and matching numbers?
I think the "Big 5" in the office were just kicking back and allowing the "interns" to authenticate thinking no one would ever question PSA/DNA, and raking in a hefty salary as being a figurehead. Now that the heat in the kitchen has gotten pretty hot to the point of people changing alliances and hirings and firings becoming commonplace, this is only the tip of the iceberg which will take a long time to iron out, long after the dust settles.....

ndleo

baseballfanatic - Then why even use any expert's name on a cert? Based on your beliefs, PSA/DNA is just a scam.

I'm submitted to PSA/DNA at shows and know that they have assistants helping them with the items. At a minimum I would expect one of the "leading experts" to at least review the work before issuing a cert.

Here is the a blurb from the PSA/DNA site:
"The world's leading autograph authentication experts have been pooled together by PSA/DNA to examine and certify your previously signed autographs."

I guess you are calling PSA/DNA a liar.

baseballfanatic

To everyone reading this. I am NOT calling PSA a liar. It seems that some bulk submissions and some lax in standards are catching up to some people. We need something like PSA/DNA to keep the hobby clean, but if they arent doing thier part (the "experts") then something like this was bound to happen. Hopefully, PSA can come back even stronger from something like this, rather than deleting threads and pushing it under the carpet. Like stated before, do the people whose names are on the PSA certs live within commuting distance to PSA and actually grade all of these cards? A lot of things need to come out in the open.........

As a PS: Dont "guess", just state facts........

ArtRossLives

This is another reason I no longer collect autographs.

PSA should have settled this out of court. While I don't own stock I've submitted a lot of cards to PSA in the last 2 years so I feel like an 'investor.' I really like the Registry and I like their grading product, POP reports, and even the SMR Magazine. I'm stating all this to show that I'd like to see PSA continue to be successful.

Having said that I'd really like to see a company spokesperson come on the board and give an explanation of how this happened and more importantly specific information on how they will pay this large amount of money and what impact (if any) the payment will have on continuing operations.

SDavid

It's amazing the ways in which people can get rich in this country.

This guy gets $10.5 million to protect a name I've never heard of (granted, I don't collect or sell autographs), and the collectors who may be stuck with counterfeits get zippo. Lovely.

ndleo

SDavid - My point exactly. This issue burns me up because I have spent thousands on PSA/DNA services and items. This isn't just some small error on a flip, this goes right to the heart of the service.

baseballfanatic maybe correct, interns do all of the work and the "expert" signatures are just a marketing tool. If that is the case, then why even have experts?

PSA has their money, the experts have their money, Miller is going to get his money from PSA, and the collector/consumer is stuck holding the bag.

I guess the only autographs you can really count on are the ones you get in-person and the ones in the modern packs. Also this means that some of the autographs rejected by PSA/DNA could be legit. For all we know PSA/DNA just randomly rejects autographs to make it look like their "experts" know what they're doing.

Mefer

I have read Civil Code section 3344. While I have not researched it completely, I am having trouble believing a 10.5 million dollar award will be upheld. I don't see that the statute provides presumed damages of $750 for each occurrence. There, however, might be a case out there that interprets the section to be applied in that fashion.

I don't think it is time to panic just yet. There are post trial motions that could be made and won that could reduce the verdict amount. An appeal is also possible. However, without knowing the case details, I can't comment further.

larryallen73

If he was so badly hurt why don't they offset his salary he gladly accepted while his name was being so badly tarnished. Embarrased to be a lawyer when I see big judgements like this come down.

ndleo

The amount of the judgement is irrelevant. The main point is that collectors are paying a bunch of trainees to verify our autographs while the "experts" play golf or do whatever "experts" do.

Putting an "expert" signature on a cert implies that person has reviewed the auto. Based on this lawsuit, we know that doesn't happen all of the time.

Makes you wonder why they even charge extra for certian signatures. I'm sure the trainees get paid the same regardless of the auto.

Mefer

I would tend to disagree that the amount of judgment is irrelevant. The amount of judgment could potentially, and I do emphasize potentially, impact all operations under the CU umbrella. Having never heard of the gentleman who sued, it just boggles my mind that he received such a hefty judgment. In any event, it would be nice to get more information directly from CU or PSA before sending in more cards. I will, like many of you, continue to monitor the situation.

ndleo

Mefer - I meant to say that it is irrelevant to me since I won't see any of it. Based on CU's cash, $10.5 m is not an issue.

After the Miller case is resolved, I would really like to see an official statement from PSA/DNA to the hobby clarifying what happened and what is affected.

But I've been in this hobby long to enough to know that there are more crooks than angels.

DaBigHurt

I think it's important to remember in this dark hour that PSA and PSA/DNA are the FOREMOST trained and certified experts in the field of sports cards grading and autograph authentication. I'm sick and tired of these frivolous lawsuits filed by ambulance chasers looking to bring down big successful companies.

Each and every single autograph the TRAINED and CERTIFIED forensics document examiners at PSA/DNA authenticate are compared with exemplars in their vast database. Comparing slant, pen flow, pen pressure and other SCIENTIFIC authentication techniques, often spending 30-45 minutes per autograph, the PSA/DNA authenticators know without a doubt whether or not an autograph is legit.

We should keep in mind that nowhere in that lawsuit does it say the autographs were forgeries.

IJustLoveCards

<<<<< I think it's important to remember in this dark hour that PSA and PSA/DNA are the FOREMOST trained and certified experts in the field of sports cards grading and autograph authentication. I'm sick and tired of these frivolous lawsuits filed by ambulance chasers looking to bring down big successful companies.

Each and every single autograph the TRAINED and CERTIFIED forensics document examiners at PSA/DNA authenticate are compared with exemplars in their vast database. Comparing slant, pen flow, pen pressure and other SCIENTIFIC authentication techniques, often spending 30-45 minutes per autograph, the PSA/DNA authenticators know without a doubt whether or not an autograph is legit.

We should keep in mind that nowhere in that lawsuit does it say the autographs were forgeries. >>>>>>>>>>





I think there is someone who has 10.5 million reasons to disagree with you

wallst32

IJustLoveCards - Re-read the last paragraph from your original post....



<< <i>"For the rest of my life, I will live with the uncomfortable feeling that at any time I might be held responsible for someone who authenticated an autograph I never looked at. When an item turns out to be not genuine, as we have already found to be the case in a number of instances, it's my name which will bear the responsibility and my reputation, carefully built over 15 years, which will be damaged." >>



The "damages" in the case aren't just unauthorized use of Miller's name, but also to his reputation due to the fact some of the product bearing his name is misrepresented. The size of the award takes into account any potential future income he may have lost due to his reputation being tarnished.

IJustLoveCards

<<<<<<When an item turns out to be not genuine, as we have already found to be the case in a number of instances>>>>>>>





I agree with you, my point is that there are already representations of items that are not authentic that were labeled authentic already in the marketplace. How are we as collectors going to determine which is authentic and which is not. I am not bashing PSA in anyway, I am mearly trying to understand exactly what the ramifications of this is/are, and how it will effect the authenticity of autographs in the marketplace.

williplett

Wow, this is a HUGE blow to PSA and it has me thinking. Have the cards I have been paying a premium for due to the PSA label been trimmed? Or, are they counterfeits. Once an organization that is based on trust has been proved to have defrauded a ton of customers, where to they go from there? We all make fun of PRO and the other second tier services, but with this fraud finding and other cases against PSA, are they much better?

Very dissapointing stuff. PSA should be ashamed of themselves. The kicker is that they will probably raise prices to pay off their claim. So, people will pay more for a product that is, for all intents and purposes, worth less.

calleocho

they are talking about autographs ...not cards

MiniMaster

Remeber the lady that purchased a cup of coffee at McDonald's and she spilled it on her lap and she sustained serious burns. The initial result of the law suit......a judgement in the Millions of Dollars. The final result.......a judgement in the amount of $43,000 most of which went to medical expenses and atty fee's. What ever this may appear to be about now can definately change in a big way in appeals to the initial outcome. Everyone talking down on PSA should definately hold off the smear until the FINAL outcome!

WinPitcher

I agree with mini master, it is unwise to smear someone without all the facts. I try to see both sides, I too will wait for the final outcome before I make a determination.


SD