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Commercial Law Keyed to Whaley
Ellig v. Molina
Citation:
996 F. Supp. 2d 236Facts
In 2007, Plaintiffs met Defendant, a renowned jeweler, on a around-the-world trip in 2007 and became close friends. During their friendship, Plaintiffs entered into an oral agreement to purchase a custom-made diamond ring with the understanding that Defendant would buy back the ring within one year at the full purchase price plus 10% if Plaintiffs were unsatisfied with the final product for any reason. Defendant suggested the purchase of the large diamond ring as a safe investment for Mrs. Ellig’s 65th birthday and their 17th wedding anniversary. In June 2011, Plaintiffs purchased the ring for over $650,000, relying on Defendant’s assurance of a buy-back guarantee, plus 10% and they received the ring in its final form in late July or early August 2011. However, when Mrs. Ellig called Defendant to return the ring in late May or early June 2012, Defendant sent Plaintiffs a letter (referred to at trial as the “Dear Brother” letter) stating that the ring would need to be put on consignment for them to get their refund. In response to this letter, Plaintiffs sued Defendant for breach of contract.
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