Luxury Watch Consignment Fraud Lawsuit Ends in $207,000
Table of Contents
Case Background
Greco Romero, Alejandro Garcia Gachez, Jesus A. Cabrera Ornelas, and Carlos L. Varela filed this civil action. They were the Plaintiffs in the matter. The action named Newton Cordeiro and The Newt LLC d/b/a Newt Corp as Defendants. The lawsuit centered on a dispute over luxury timepieces consigned for sale.
Cause
The Plaintiffs entrusted high-value luxury timepieces to the Defendants. The consignment was for the Defendants to sell the watches online. The agreement involved the Defendants receiving service fees and a commission from the sales. Plaintiffs alleged the Defendants made false representations about insurance coverage. Specifically, the Plaintiffs claimed the Defendants falsely told them the timepieces would be fully insured while in their possession.
Defendants later reported the timepieces were stolen. The alleged theft occurred during an attempted in-person sale to a third-party buyer. Defendants claimed this buyer had previously conducted business with them. Plaintiffs maintained that Defendants provided different, inconsistent accounts of the alleged theft to each Plaintiff. This led to the subsequent legal action.
Injury
The core injury claimed by the Plaintiffs was the financial loss of their luxury timepieces. The Complaint alleged direct and proximate damage resulting from the Defendants' actions. The Plaintiffs were deprived of their property or the proceeds from the intended sale. The Plaintiffs also claimed injury from the Defendants' failure to account for the property or the sales proceeds.
The injuries stemmed directly from the multiple alleged breaches of duty. These included the failure to exercise reasonable care for the timepieces. The injuries also involved the Defendants' failure to honor their commitments regarding insurance and sales accountability. These actions forced the Plaintiffs to seek redress in Court.
Damages
The Plaintiffs sought compensatory damages to recover the financial loss of their consigned luxury timepieces, including being deprived of the property itself or the proceeds from the intended sales. Additionally, they demanded an accounting from the Defendants for the property and sales proceeds, indicated their intent to seek punitive damages, and requested pre- and post-judgment interest and costs.
Key Arguments & Proceedings
Legal Representation
Plaintiff: Greco Romero | Alejandro Garcia Gachez | Jesus A. Cabrera Ornelas | Carlos L. Varela
· Counsel for Plaintiff: Victoria J. Wilson | Jeffrey C. Schneider
Defendant: Newton Cordeiro | Newt Llc (The)
· Counsel for Defendant: Not Mentioned
Key Remarks by the Counsel
Claims
The Plaintiffs asserted six primary causes of action against the Defendants. These claims were based on the loss and mishandling of the consigned timepieces. The Complaint was filed on October 30, 2024.
First, the Plaintiffs claimed Breach of Contract. They alleged Defendants failed to uphold the terms of the consignment agreement. Second, the Plaintiffs claimed Negligence. This alleged Defendants failed to exercise reasonable care over the property. Third, the Complaint asserted Conversion. This claim focused on the wrongful retention or disposal of the Plaintiffs' property.
The fourth claim was Unjust Enrichment. This alleged the Defendants improperly benefited at the Plaintiffs' expense. The fifth claim was Fraud. This alleged the Defendants knowingly made false statements about the insurance coverage. Finally, the Plaintiffs claimed Breach of Fiduciary Duty/Accounting. They alleged the Defendants failed to act in the Plaintiffs' best interest and failed to account for the watches or sales proceeds. The Plaintiffs also indicated an intent to seek leave to assert a claim for punitive damages.
Defense
Defendants had allegedly reported to Plaintiffs that the timepieces were stolen by a third party. The Defendants later gave conflicting stories to the various Plaintiffs about this alleged theft.
Jury Verdict
The jury returned a verdict in favor of the Plaintiffs. The total amount awarded to the three Plaintiffs was $207,000. The jury awarded the following individual amounts:
Jesus A. Cabrera Ornelas received a total damage award of $30,000. Alejandro Garcia Gachez was awarded $44,500 in total damages. Greco Romero received a total damage award of $132,500.