Waller v. Scheer

332 S.E.2d 293, 175 Ga. App. 1
CourtCourt of Appeals of Georgia
DecidedApril 23, 1985
Docket70104, 70105
StatusPublished
Cited by12 cases

This text of 332 S.E.2d 293 (Waller v. Scheer) is published on Counsel Stack Legal Research, covering Court of Appeals of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Waller v. Scheer, 332 S.E.2d 293, 175 Ga. App. 1 (Ga. Ct. App. 1985).

Opinion

Birdsong, Presiding Judge.

Scheer brought suit against Allan Waller, Allan Waller, Ltd., and East India Company for breach of warranty, fraud, and violation of the Fair Business Practices Act (FBPA) (OCGA § 10-1-390 et seq.) in the sale of a painting and an antique sari.

The evidence shows that in October 1980, Scheer answered a newspaper advertisement for sale of antique Chinese porcelain priced at $3,000. Scheer went to Waller’s home, where Waller told Scheer the ad had been a mistake and that the intended sale price was $30,000. Scheer told Waller he was not interested in the porcelain, whereupon Waller showed Scheer a painting of Arabian horses which, according to Scheer, Waller said was by Adolf Schreyer, a nineteenth century German artist.

Waller also showed Scheer a photograph of an antique sari which, according to Scheer, Waller said contained a pound of pure gold woven in threads. Waller showed Scheer an Atlanta Magazine article in which the sari was depicted and described for sale at $5,000; at the time, the sari was in New York at Sotheby Park Bernet’s auction house to be auctioned off with a reserve price of $2,500. Scheer also viewed some antique tapestries.

Waller denied that he warranted the painting and said he told Scheer he could not give a provenance and could not give a guarantee *2 as to the painting, but Waller showed Scheer an appraisal by one Paul Sternberg of Trosby’s auction house on which were typed the words: “A superb example of the work of Adolf Schreyer.” Sternberg appraised the painting at $22,000. Waller also, according to Scheer, told Scheer that Mr. David Ramus, an expert in 19th century paintings had given Waller a firm offer of $18,000 for the painting provided a guarantee was supplied. Waller told Scheer that similar Adolf Schreyer paintings had sold for $30,000-$40,000 and showed him an auction catalog to that effect. He also told Scheer that he had sent a photograph of the painting to Sotheby Park Bernet’s for acceptance at auction and was waiting to hear from that establishment. Waller asked Scheer not to contact Sotheby’s because it would ruin his reputation as a dealer if Sotheby’s discovered Waller was “shopping” the painting behind its back. Waller testified, however, that when he first talked to Scheer he had not heard from Sotheby’s whether it had made a decision, but that before the sale to Scheer he learned Sotheby’s had rejected the painting for auction. Waller refused to let the painting out of the house but gave Scheer a color photograph of the painting at least two weeks before the sale; Scheer sent the photo to a friend in New York who he thought might be interested, but the friend declined.

According to Scheer, when he visited Waller’s home again, Waller regaled Scheer with a description of his dire financial straits, particularly showing Scheer a returned $5,000 check written for escrow on real property, and complaining that his son’s tuition to private school was in jeopardy. All of this supposedly went to explain why Waller wanted to hurriedly sell the painting, sari, porcelains, and tapestries for less than $24,000 instead of waiting to auction them off. Scheer testified that he knew both Ramus and Sternberg but never contacted them about the painting, and never called Sotheby’s because of Waller’s request that he not do so, and that he believed what Waller told him and had no reason to question the authenticity of the painting. He admitted he was gullible, and that his failure to call Sotheby’s was, in hindsight, ridiculous.

Scheer testified further that he capitulated only after Waller’s repeated importunings and bought the painting, sari, porcelain, and tapestries for $16,000, chiefly because he felt sorry for Waller. He stated that it appealed to the social worker in him that Waller, who lived in what Scheer thought was a magnificent $400,000 house with magnificent gardens, was in such pathetic, though temporary, financial straits. He was touched by Waller’s story. He was trying to help Waller out. After purchasing the items, however, he had samples of thread from the sari assayed and learned it contained only a minute amount of gold, and he sent the photo of the painting to Sotheby’s, which rejected the painting for auction. Thereupon Scheer sent Wal *3 ler a letter rescinding the sale.

Waller testified that at all times he believed the painting to be an Adolf Schreyer, although he could not guarantee it, and that he threw the sari into the sale lot, or gave it away, because it had no gold. He sold “the whole mess” for $16,000, including $30,000 worth of porcelain and $5,000 worth of tapestries. (The sale figure ascribed to the painting was $10,000.) He denied telling Scheer the painting was in fact an Adolf Schreyer but said he told Scheer he believed the painting was “right”; he testified that the fact he sold the painting for the low price of $10,000 indicates his inability to guarantee it to Scheer.

An expert witness testified for Scheer that in his opinion the painting is not an Adolf Schreyer because the musculature of the horses is ill-defined. Paul Sternberg testified that he based his $22,000 appraisal on what Waller told him, and that he never typed on the appraisal “a superb example of the work of Adolf Schreyer.” He appraised the sari at $6,500. David Ramus testified he had offered Waller $18,000 for the painting if it could be guaranteed as a Schreyer, but he was aware that the photo had been sent to Sotheby’s for acceptance, and after Sotheby’s rejected it for auction he became doubtful of its authenticity; he said the painting had value only as a decorative piece. Clive Howe, an expert witness for Waller, testified that at the time of trial, he had no reason to believe the painting is not genuine; that he believed the painting cannot be anything but an Adolf Schreyer or Schreyer studio work, and any difference in style is attributable to its having been painted during Schreyer’s “loose” period. He did not believe it was a fake because a copier would have copied Schreyer’s style more exactly. He explained that the fact a painting is rejected for auction by an auction house does not mean the painting is a fake but the painting may have been rejected because Sotheby’s must take a conservative approach. He had seen the painting in Waller’s home in 1968 and told Waller then the painting was an Adolf Schreyer. Mr. Howe testified that the painting, if genuine, would be worth $20,000-$24,000, but as a merely decorative piece it would be worth $6,000-$8,000.

After protracted discovery and trial, the jury returned a verdict on the fraud count for the painting only, for $13,000 actual damages, $3,000 punitive damages, and $25,000 attorney fees. Appellants, hereinafter referred to as Waller, cite 13 errors below and Scheer cross-appeals. Held:

Case No. 70104 (Appeal of Waller)

1. Waller contends the trial court erred in denying summary judgment and directed verdict on the Fair Business Practices Act claim because the sale was not a consumer transaction in the market *4 place but was a sale by private negotiation between two individual parties and did not constitute a harm to the general consuming public (Zeeman v. Black, 156 Ga. App.

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Bluebook (online)
332 S.E.2d 293, 175 Ga. App. 1, Counsel Stack Legal Research, https://law.counselstack.com/opinion/waller-v-scheer-gactapp-1985.