Man buys nearly 125,000 bottles of wine at auction for $100 (Wizbang)

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Man buys nearly 125,000 bottles of wine at auction for $100
SAN LUIS OBISPO, Calif. - Ken Jacques just bought nearly 125,000 bottles of wine for $100. That's less than a penny a dozen.

And this isn't cheap wine, either. It sells for $9 to $15 a bottle at your local store.

It all started when the 46-year-old San Luis Obispo wine distributor was sued. That led to a countersuit, which led to a six-figure monetary award for him, which led to a bizarre auction that ultimately found Jacques bidding alone.

Here's how it went down.

James Estate Winery in 2002 signed Jacques' company, Evaki Inc., to market its Australian products in the United States.

But a few months later, James Estate stopped paying Evaki's consulting fee, filed a lawsuit and claimed that his company was doing a poor job marketing its wine.

Next, according to a San Luis Obispo judge, James Estate sent letters to Evaki's clients, falsely saying Evaki was being prosecuted for stealing money.

Superior Court Judge Douglas Hilton sided with Evaki and Jacques, ruling that the Australian wine company should pay the local firm $399,000 for libel and breach of contract.

The wine company said it didn't have the money to pay it. But then Jacques' attorney, Jeffry Radding, learned the winery had more than 10,000 cases of wine sitting in a Sonoma, Calif., warehouse. So the judge ordered a wine auction to help James Estate pay off its judgment. Jacques and three others showed up for it in December.

One man arrived late, so he was out. The second prospective bidder was a representative from James Estate hoping to push up the bidding amount or buy back the wine, according to Jacques. When the man's liquor license didn't check out, the sheriff's staff escorted him from the warehouse.

That left Jacques and another bidder, a multimillionaire well known in the wine industry.

"He looked at me and checked me out like we were playing poker," Jacques said. "I anticipated we'd have a couple buyers there to purchase everything for $100,000 to $150,000."

Jacques threw down $100, and when the millionaire didn't bid, Jacques won.

"I could have easily bid just a dollar," Jacques said, in retrospect. "But that just didn't seem right - it was too sweet of a deal."

I bet he has a lot of new friends.

Comments (9)

Talk about lucky that guy m... (Below threshold)

1. Posted by Rob Hackney | January 18, 2005 3:40 PM | Score: 0 (0 votes cast)

Rob Hackney:

Talk about lucky that guy must be happy as a pig in Sh*t.

Posted on January 18, 2005 15:40

Damn! Why didn't I know abo... (Below threshold)

2. Posted by Michael | January 18, 2005 3:57 PM | Score: 0 (0 votes cast)

Michael:

Damn! Why didn't I know about this auction!?

Posted on January 18, 2005 15:57

Ah but some Aussie wine is ... (Below threshold)

3. Posted by Debra | January 18, 2005 4:09 PM | Score: 0 (0 votes cast)

Debra:

Ah but some Aussie wine is crap...
The New Zelands are pretty good though...The Sauvignon Blancs from the Marlborough region are exceptional.
Australian wines? Not so much for me...I'd have laid down the dollar.
Still....my poor little 30 bottle cooler would have been happy even if I didn't partake. I have lots of friends who couldn't tell the difference between colored water and a good bottle of wine. Hell, they'll drink anything. Serve then the cheap and save the good!!

Posted on January 18, 2005 16:09

I bet his liver is quaking ... (Below threshold)

4. Posted by Confederate Yankee | January 18, 2005 6:00 PM | Score: 0 (0 votes cast)

Confederate Yankee:

I bet his liver is quaking in fear...

Posted on January 18, 2005 18:00

- He's going to need one he... (Below threshold)

5. Posted by Big Bang Hunter | January 18, 2005 6:42 PM | Score: 0 (0 votes cast)

Big Bang Hunter:

- He's going to need one hellofa cork screw....

Posted on January 18, 2005 18:42

Correct me if I'm wrong but... (Below threshold)

6. Posted by Bud Tugley | January 18, 2005 7:31 PM | Score: 0 (0 votes cast)

Bud Tugley:

Correct me if I'm wrong but, since James Estate originally owed 399K to him, he not only got the wine for $100 but also is still owed 398,900.00 from the James Estate. Sweet Deal!

Gotta love this country.

Posted on January 18, 2005 19:31

The upshot is, he not only ... (Below threshold)

7. Posted by TallDave | January 18, 2005 8:04 PM | Score: 0 (0 votes cast)

TallDave:

The upshot is, he not only gets the wine but they still owe him the money.

The only way this would be better is if they were French.

I'm opening a bottle of (Aussie) merlot to celebrate.

Posted on January 18, 2005 20:04

i am a young argentinian wh... (Below threshold)

8. Posted by iggi marco | January 19, 2005 1:09 AM | Score: 0 (0 votes cast)

iggi marco: