PHILADELPHIA – A six-figure financial dispute between collectors of rare “Magic: The Gathering” playing cards that is centered on fraud accusations will soon go to trial in a Philadelphia federal court.
Michael Ruggiero of Morganville, N.J., first filed a complaint in the U.S. District Court for the Eastern District of Pennsylvania on July 20, 2018, versus Brian Nocenti of Kennett Square and a John Doe, alleging that they breached their duty of good faith and fair dealings.
Ruggiero argued that on May 29, 2018, he suffered from significant financial loss and the loss of irreplaceable collection of “Magic: The Gathering” playing cards, as a result of the wrongful conduct of the defendant.
Ruggiero alleged Nocenti agreed to sell his rare card collection at a total contract price of $177,415 payable in three years, with request for $70,000 due on the first year.
The plaintiff further alleged that the defendant schemed to sell the cards at a higher price to another buyer even though they had a valid contract, according to the complaint.
In so doing, Ruggiero alleged that Nocenti both reneged on the contract and refunded the plaintiff the amount of $40,000 that he had paid to date.
The plaintiff holds Nocenti and Doe responsible, because the defendants allegedly caused plaintiff to sell his own irreplaceable collection to finance the agreement.
Further, the defendant alleged that the plaintiff failed to meet the timeline to pay $70,000, despite evidence of exchange of messages with defendant confirming June 26, 2018 as the deadline for initial payment, according to the complaint.
However, the plaintiff countered that in a showing of good faith and having already paid $40,000 to date, Ruggiero sent Nocenti the remaining $30,000 (plus transaction fees – paid by Ruggiero), totaling $70,000 paid by May 29, 2018, over one month prior to actual expiration of the first $70,000 being due.
Nocenti asserts he refunded Ruggiero the $70,000 that same day.
On June 8, 2018, Ruggiero’s counsel sent defendant a letter directing Nocenti not to sell the cards that are the subject of this case as same would constitute the spoliation of evidence. Nocenti testified that he received this letter, but nonetheless, after receiving the letter he decided to sell a large portion of the subject cards for about $100,000.
UPDATE
Per a Jan. 14 update from U.S. District Court for the Eastern District of Pennsylvania Judge Joel H. Slomsky, the case has been listed for trial (via videoconference) on March 25-26.
Counsel for the plaintiff filed an amended pre-trial memorandum on Feb. 18, outlining the outstanding issues to be resolved at trial.
In addition to Ruggiero and Nocenti testifying about the specifics of the card deal gone awry, a pair of damages experts, Travis Landry and Nick Coss, will provide their expert testimony as the value of the cards in question and to what amount subsequent damages in the case will total out to.
In the memorandum, it is asserted that the total economic damages at issue in the case are $490,685 for breach of contract and $139,998 for promissory estoppel, for a grand total of $630,683.
“Plaintiff will also seek damages for its fraud and Unfair Trade Practices and Consumer Protection Law claims, including attorneys’ fees. Additionally, if spoliation is established at trial, plaintiff will also seek sanctions and costs such as reasonable counsel fees,” the memorandum stated.
“Plaintiff anticipates that the Court will only have to additionally resolve the remaining counts in plaintiff’s complaint: Counts I (breach of contract), III (contract implied in fact), VI (promissory estoppel), VII (fraud/fraud in the inducement), and VIII (violation of the UTPCPL).”
The plaintiff is represented by Alexandra S. Jacobs, Michael Justin Fekete and John J. Levy of Montgomery McCracken Walker & Rhoads, in Cherry Hill, N.J.
The defendants are represented by Christopher James Amentas of Armstrong & Carosella, in West Chester.
U.S. District Court for the Eastern District of Pennsylvania case 2:18-cv-03047
From the Pennsylvania Record: Reach Courts Reporter Nicholas Malfitano at nick.malfitano@therecordinc.com