ST. LOUIS - U.S. District Judge Henry Edward Autrey has denied a motion to dismiss a suit claiming a luxury auto retailer misrepresented the condition of a classic 1959 Mercedes Benz Roadster purchased on e-Bay for $125,000.
Joseph E. and Elizabeth J. Walsh sued Larry E. O'Hara, Jr., G.E.A.R.S. and Auction Holdings and Acquisitions two years ago in federal court in St. Louis claiming that the Roadster - purported to be the 548th car built by Mercedes Benz - was held out as having been completely restored, yet when the Walshes took possession they discovered evidence that it had not been.
The Walshes claim the car's frame is in original condition and has never been blasted to bare metal as a restored car's frame would be - and it shows "substantial visible rust."
They further claim the car's body shows rust in at least three locations that have been "clumsily hidden" by a recent paint job, wiring is original in many places, the driver's door does not properly align with the body and quarter panels show poor quality workmanship.
As for its operation, the Walshes claim all gauges do not work properly and the engine doesn't start and run "seamlessly."
The Walshes say they knew upon delivery that the Roadster did not match how it was described for sale, and claim they attempted to return the vehicle but the only offer made was to reduce the price.
Autrey's order indicates that O'Hara, as an individual, was dismissed as a defendant.
He held that the first amended complaint "sets forth sufficient allegations to state a claim for breach of contract and breach of warranties."
"Whether and to what extent, the subsequent signed documents Defendants argue are the contract are issues not properly before the Court at this time," he wrote in the Oct. 22 order.
"Under the standards applicable to a motion to dismiss for failure to state a cause of action, the First Amended Complaint sets forth sufficient facts to notify Defendants of the claims against them."