O.C. Sues Automobile Auctioneer

Prosecutors have sued an Orange County auto auctioneer on claims that he falsely advertised and misled consumers, gouging them for fees that they hadn’t expected in bidding on cars.

The civil lawsuit, filed by the Orange County district attorney’s consumer fraud unit, also accuses Norman Leigh Haigh and his auction companies of trying to evade their legal duties as sellers to guarantee the basic working order of their cars.

The suit against Haigh and his Auctions Plus in Garden Grove and Auction Services in Lake Forest seeks $300,000 in fines and penalties for alleged violations of state business laws. The suit was filed Thursday in Orange County Superior Court in Santa Ana.

Neither Haigh nor his lawyer, David P. Stroud of Newport Beach, were available for comment

“On its face, the sales contract contains violations of state law,” said Deputy Dist. Atty. Wendy Brough. “What he’s doing with the contract is passing responsibilities to the purchaser that he holds as seller.”

The contract, for example, violated state DMV laws by telling purchasers that they are responsible for the working order of such safety equipment as brakes, lights, horn, safety belts, smog equipment and windshield wipers, Bough said.

In addition, the lawsuit charges that Haigh’s contract violates state law by refusing to guarantee that odometer readings are accurate and by making the buyer responsible for transferring the title.

Haigh also inserted a “hold harmless” provision in the contract that stated he and his companies weren’t liable for any failure to comply with any state laws.

The lawsuit also accuses Haigh of trying to disguise mark-ups of as much as $300 as fees and failing to include such amounts in advertised prices. Some buyers were given notices stating in small print that fees would be charged, but the notices didn’t provide a specific amount, Brough said.

The prosecutor said she had discussed the complaints with Haigh and Stroud for several months in an effort to settle the case. Instead, Haigh filed a lawsuit against the prosecutor’s office and two customers last month, alleging that their accusations of wrongdoing violated his civil rights.

Haigh has opened other auto auction sites in neighboring counties, Brough said.