Background: I run a small business in TN building mazda rotary engines, a unique engine different from those in 99% of other cars on the road. There are several "generations" and "versions" of engines and engine parts that vary by year and model. There is no training or certification in this niche field, most builders are self taught via race experience or personal mechanical experience, including myself. I have been building engines for the public since 2001, and have built about 250 documented engines, all with a great reputation online.
In 6/06 I sold an engine to a buyer in OK. This was an engine I had built for my own use several months prior, but did not use it. This engine was sold for use in 93-95 models. IT was a complete "longblock" with all the external accessories (alternator, intake manifolds, wiring, etc.). I had built the block (shortblock) from a mix of used and new parts as is customary with these engines. IT was advertised on an internet rotary forum which is how the deal was facilitated.
Here's the tricky part. When I built this for my own use, I used 2 parts (of the block) from a different "version" of rotary engine, while the rest were actually of this "version". The 2 parts that I substituted are basically equivalent to what would have come stock in this engine, except for 2 small sleeves which were modified for use in this engine. This forum database deletes content every few months, so I no longer have access to the original ad or how exactly the engine/sale was worded, but basically this was not disclosed as part of the sale. Honestly enough time had passed since I built it (for my own use) that I forgot all about the substitution when I sold it. Nevertheless, the substitution would have NO EFFECT on how the engine runs, performs, etc.
The engine was sold with a 1 year warranty against defects such as oil pressure, compression, smoking, etc. and no warranty on the external accessories (alternator etc.). The buyer paid a deposit on the engine via paypal, and then the balance via USPS money order. The engine was shipped to him and he paid this cost directly to the carrier upon arrival in his city.
The buyer gets the engine, and based on the lack of complaints to the contrary, I assume it runs well and produces acceptable compression, oil pressure, etc. as warrantied to. Then in 4/08 (well out of warranty) the buyer was doing some work/modifications to the engine and discovered visual cues that identified these 2 housings as being from a different "version" of engine. After short communication via email, the buyer claims that I misrepresented the engine and I should refund him the FULL PURCHASE PRICE OF THE ENGINE PLUS THE SHIPPING THAT HE PAID FROM ME TO HIM, even though he has received 2+ years of use from the engine.
He files a complaint on BBB's website and then later (last week) has his attorney (licensed in OK only) send me a letter threatening to sue in OK district court. They are asking for just under $3000, the purchase price of the engine plus shipping from me to him (which he paid to the shipping carrier, not me). They also state that if I refuse to settle, they will sue for attorney fees plus "troubleshooting, installation and removal labor" related to the engine.
There is also no guarantee that the buyer has not damaged or blown the engine and now wants a free ride because he spotted a couple of non-stock parts in the engine.
I sought advice from attorneys and law students online on a couple of other forums I am a member of, and ALL of them are telling me that this guy has zero chance and that I should ignore the threat and tell him to take a hike.
I had a consulation with a local attorney yesterday who deals in contract law in TN (where I am located). He seemed significantly more worried about this, and told me that in fact they CAN sue me in their home location of OK, and that I would lose unless I wanted to go out there and defend myself (I would not). He recommended either calling their bluff and ignoring it to see what happens, or writing a counter offer letter to replace the substituted parts in the engine and/or offer a small amount of money as a settlement.
When I went back to the other people online who had previously suggested that it was nothing to worry about, they all told me that the local attorney didn't know what he was talking about and that I should seek a second or third opinion and that there is no way I should lose any money to this.
Now I know not to trust everything that I am told by non-professionals on the internet. But I also know that 7-10 knowledgeable people might be right, especially when the local attorney stands to make money off of me by giving me skewed advice.
What do you professionals here think? Here are my main questions:
1) can I be sued in another state, versus them having to come here?
2) if they obtain a judgement against me in another state, can they come here and enforce it without a new trial here?
3) should I just ignore this and see what they do, or should I be making counter offers?
Thanks in advance for any help. There is only one other local attorney listed on findlaw that says they deal with contracts, and my time is pretty limited during business hours to try and get an appointment (most of them are booked for a week in advance anyway).
In 6/06 I sold an engine to a buyer in OK. This was an engine I had built for my own use several months prior, but did not use it. This engine was sold for use in 93-95 models. IT was a complete "longblock" with all the external accessories (alternator, intake manifolds, wiring, etc.). I had built the block (shortblock) from a mix of used and new parts as is customary with these engines. IT was advertised on an internet rotary forum which is how the deal was facilitated.
Here's the tricky part. When I built this for my own use, I used 2 parts (of the block) from a different "version" of rotary engine, while the rest were actually of this "version". The 2 parts that I substituted are basically equivalent to what would have come stock in this engine, except for 2 small sleeves which were modified for use in this engine. This forum database deletes content every few months, so I no longer have access to the original ad or how exactly the engine/sale was worded, but basically this was not disclosed as part of the sale. Honestly enough time had passed since I built it (for my own use) that I forgot all about the substitution when I sold it. Nevertheless, the substitution would have NO EFFECT on how the engine runs, performs, etc.
The engine was sold with a 1 year warranty against defects such as oil pressure, compression, smoking, etc. and no warranty on the external accessories (alternator etc.). The buyer paid a deposit on the engine via paypal, and then the balance via USPS money order. The engine was shipped to him and he paid this cost directly to the carrier upon arrival in his city.
The buyer gets the engine, and based on the lack of complaints to the contrary, I assume it runs well and produces acceptable compression, oil pressure, etc. as warrantied to. Then in 4/08 (well out of warranty) the buyer was doing some work/modifications to the engine and discovered visual cues that identified these 2 housings as being from a different "version" of engine. After short communication via email, the buyer claims that I misrepresented the engine and I should refund him the FULL PURCHASE PRICE OF THE ENGINE PLUS THE SHIPPING THAT HE PAID FROM ME TO HIM, even though he has received 2+ years of use from the engine.
He files a complaint on BBB's website and then later (last week) has his attorney (licensed in OK only) send me a letter threatening to sue in OK district court. They are asking for just under $3000, the purchase price of the engine plus shipping from me to him (which he paid to the shipping carrier, not me). They also state that if I refuse to settle, they will sue for attorney fees plus "troubleshooting, installation and removal labor" related to the engine.
There is also no guarantee that the buyer has not damaged or blown the engine and now wants a free ride because he spotted a couple of non-stock parts in the engine.
I sought advice from attorneys and law students online on a couple of other forums I am a member of, and ALL of them are telling me that this guy has zero chance and that I should ignore the threat and tell him to take a hike.
I had a consulation with a local attorney yesterday who deals in contract law in TN (where I am located). He seemed significantly more worried about this, and told me that in fact they CAN sue me in their home location of OK, and that I would lose unless I wanted to go out there and defend myself (I would not). He recommended either calling their bluff and ignoring it to see what happens, or writing a counter offer letter to replace the substituted parts in the engine and/or offer a small amount of money as a settlement.
When I went back to the other people online who had previously suggested that it was nothing to worry about, they all told me that the local attorney didn't know what he was talking about and that I should seek a second or third opinion and that there is no way I should lose any money to this.
Now I know not to trust everything that I am told by non-professionals on the internet. But I also know that 7-10 knowledgeable people might be right, especially when the local attorney stands to make money off of me by giving me skewed advice.
What do you professionals here think? Here are my main questions:
1) can I be sued in another state, versus them having to come here?
2) if they obtain a judgement against me in another state, can they come here and enforce it without a new trial here?
3) should I just ignore this and see what they do, or should I be making counter offers?
Thanks in advance for any help. There is only one other local attorney listed on findlaw that says they deal with contracts, and my time is pretty limited during business hours to try and get an appointment (most of them are booked for a week in advance anyway).