Bought and sold item, found out later the item was stolen

[stream41]

I'm in Arkansas.

I run an online guitar store, buying and selling guitars. In June '07 I purchased a guitar from an eBay seller in Kentucky and resold it in July '07 to a gentleman in California. A few days ago, I got an e-mail from a PI saying that this guitar was reported stolen in June '06, and that my customer will need to return the guitar. Obviously I had no idea the guitar was stolen when I bought it, and neither did my customer.

Will my customer be able to legally come after me? There is a sherriff's department in Tennessee that's working on the case, and the detective told me that they have a suspect, but he hasn't been charged with anything. They're also looking at the person I bought it from, who may be involved in the theft scheme. Basically, I just need to know my liability for this situation. The detective mentioned that in cases like this, the last possessor of the item usually sues who they bought it from, who then sues who they bought it from, and so forth until the original thief is sued. However, I REALLY don't want to get in the middle of this. Can I just tell my customer to go directly after the suspect in the theft?

 

[seniorjudge]

Q: Can I just tell my customer to go directly after the suspect in the theft?

A: Yes; but as you already know, you maybe on the hook for the price you charged your customer (since you cannot sell stolen items).

 

[stream41]

Even though I had no idea the item was stolen? What if he does sue me? Can I just countersue the guy I bought it from?

 

[stream41]

If counter-suing isn't an option, what should I do? I would hope he would realize the wisdom of going after the original thief, but just in case he comes after me, should I try to settle? If we went to court, would I have a good case? Wouldn't he have to prove that I knowingly sold a stolen item? Obviously I didn't know.

 

[seniorjudge]

Obviously you want to say you were a good-faith purchaser, blah-blah-blah-de-blah.

And one of the things that would prove this would be that you bought this item at a fair market value.

 

[Zigner]

If counter-suing isn't an option, what should I do? I would hope he would realize the wisdom of going after the original thief, but just in case he comes after me, should I try to settle? If we went to court, would I have a good case? Wouldn't he have to prove that I knowingly sold a stolen item? Obviously I didn't know.

Honestly, why would he want to go after the "original thief". He's much more likely to recover from you!

 

[scratch2]

How did this turn out for you. I have a very similar situation with an ATV that I bought and then sold.

 

[divona2000]

How did this turn out for you. I have a very similar situation with an ATV that I bought and then sold.

scratch2, you should start your own post to ask about your situation-the person you are necroposting to at this post hasn't been back since 2008.