Yahoo Autos How Mecum Was Able to Auction a Ford GT Earlier This Summer
In May, a Ford GT sold for $1.8 million at Mecum's Indianapolis auction, and it raised eyebrows for a few reasons. Of course, there's the sale price-which was significantly more than the GT's $450,000 MSRP-but there's also the fact that Ford made owners sign an agreement saying they won't sell their cars for two years. So, how was Mecum able to sell this one well before the 24-month no-sale period was over. Fox News autos reporter Gary Gastelu did some digging and found the answer.
Per a case filed in the Marion Superior Court in Indiana, the original owner of this GT, listed as John W. Miller, sold the car for $1.1 million to Michael J. Flynn Jr., who owns Hollywood Wheels, a car auction company in Seminole, Florida. Flynn then consigned the car with Mecum on the same week of the auction, and it was listed as a "Star Attraction" on Mecum's site.
That's when Ford saw the listing and filed a motion for a temporary restraining order preventing Mecum from selling the car. In a hearing the night before the auction, Judge Heather Welch denied Ford's request, on the basis that because Flynn was the legal owner of the car at that point, he could do whatever he wanted with it. Miller might have violated his contract with Ford, but Flynn didn't have an agreement with the automaker at all.
In the order denying Ford's request, Judge Welch also said Flynn was "under no obligation to search the records of Miller’s ownership of the 2017 Ford GT outside of the representations made by Miller that no encumbrances existed on the 2017 Ford GT."
Judge Welch's order also says "furthermore, the title showing Miller’s ownership does not reveal any encumbrances regarding any subsequent sales of the 2017 Ford GT."
Ford isn't backing down, though-it's seeking damages from Flynn and Mecum. There's a hearing scheduled for August 17th.
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