Great Read: Sorting Out the Insurance Mess From the Russo and Steele Tent Collapse Disaster

[cjforumadmin]

http://www.bangshift.com/blog/Great-Read-Sorting-Out-the-Insurance-Mess-From-the-Russo-and-Steele-Tent-Collapse-Disaster.html

[Super Sport]

Re: Great Read: Sorting Out the Insurance Mess From the Russo and Steele Tent Collapse Disaster


I think Russo and Steele is still in a hell of a bind on this thing. They can go totally legal and invoke Act of God, spare themselves a ton of cash, and decimate their already damaged reputation in a business where there is no shortage of competition. If people think that they will shirk in the future, no one will bring their car to auction with these guys on a bet. They'll go to Mecum, or Barret-Jackson, or any of the others that handle classic autos, who will be thankful to pick up the business. On the other hand, the damage is certainly in the millions, and acknowledging any responsibility in this opens the economic floodgates to the point where all you might have left is your good reputation when it's all over.

Hagerty is right out on this, I think. I don't see any way that a company as small as they are can look at paying out 110 claims, some huge, at once. This was the Doomsday scenario for them, and it happened. That guy is probably burying wads of cash in his yard right now...

[IRONHEAD]

Re: Great Read: Sorting Out the Insurance Mess From the Russo and Steele Tent Collapse Disaster

I think Russo and Steele is still in a hell of a bind on this thing. They can go totally legal and invoke Act of God, spare themselves a ton of cash, and decimate their already damaged reputation in a business where there is no shortage of competition. If people think that they will shirk in the future, no one will bring their car to auction with these guys on a bet. They'll go to Mecum, or Barret-Jackson, or any of the others that handle classic autos, who will be thankful to pick up the business. On the other hand, the damage is certainly in the millions, and acknowledging any responsibility in this opens the economic floodgates to the point where all you might have left is your good reputation when it's all over.

Hagerty is right out on this, I think. I don't see any way that a company as small as they are can look at paying out 110 claims, some huge, at once. This was the Doomsday scenario for them, and it happened. That guy is probably burying wads of cash in his yard right now...

you'd think..
but even with use'n the "out" act of god..
it will not kill them and people will still bring the cars there,, why,, money..
if the other auction houses want 7% and russo is willing to do it for 4%
3% difference in sales fees is enough to get them over the hump..