WineGavel Sued By Rare, Fine Wine Collectors

Two wine collectors from Hawaii, who shipped some 3,000 bottles of rare and fine wines to WineGavel, have sued the auctioneer, its officers, executives and the parent company alleging that bottles were auctioned improperly, without their permission and that they weren’t paid for more than 500 bottles which were sold.

The court complaint also alleges violations of California auctioneer statutes and charges that WineGavel “was and is a mere shell and sham without substantial capital or assets, and that WineGavel was conceived, intended and used by defendants as a device to avoid individual liability by substituting a financially insolvent limited liability company in their place.”

Winegavel has filed a response denying all of the plaintiff’s allegations.

Matt Carson who was hired as WineGavel President in March 2012, is not among the defendants named in the legal papers.

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Also In This Article:

The full text of the following sections is available to subscribers of Wine Executive News.

• WINES APPRAISED  BY WINEGAVEL AT $156,000 TO $207,000
• IMPROPER SALES, WRONG BOTTLES, BELOW RESERVE, FAILURE TO REMIT PROCEEDS
• VIOLATION OF CALIFORNIA AUCTIONEER LAWS ALLEGED
• RESTRAINING ORDER REQUESTED TO HALT FURTHER AUCTIONS

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