John Prigge had written a post (http://www.auctionzip.com/azforum/viewtopic.php?f=2&t=1135) regarding an auction house (Defendant) winning a court case on the Judge Judy Show (http://www.youtube.com/watch?v=RzlqrTxZj-g&feature=rec-HM-fresh+div) against a dissatisfied patron (Plaintiff). Chalk one up for the good guys. Please feel free to read my response and points made on John's terrific post.

My post herein this post is too stress the a few points about the credible need for having a REAL appraisal rendered by a designated appraiser who has a current USPAP (Uniform Standards of Professional Appraisal Practice) certification.

1. On that segment of the Judge Judy Show the Plaintiff presented the alleged appraisal (handwritten by an alleged GIA gemologist and also a sitting witness) to the judge at the very beginning of the show. JJ immediately said, "This is NOT an appraisal," and handed it back to the Plaintiff.

This is exactly the point I have been making all along about why it is so vital for auctioneers to earn their appraisal designations, rather than throwing caution to the wind in providing untrained Opinion of Value services! This is a lesson that all auctioneers, and especially those providing Opinion of Value services (not TRUE appraisals), should take heed. The courts, judges, attorneys and governmental agencies are becoming much more savvy on what truly is an appraisal and who truly is an appraiser.

2. The Plaintiff alleged, "I was promised an appraisal by the Auction House." Of course, this is total hearsay and not admissible in court.

The important point for auctioneers to remember here is that they are not obligated to provide appraisals, unless contracted. If the auctioneer/auction house is NOT a designated appraiser with a USPAP certification then they are sure to find themselves in trouble if their written opinion of value, which is NOT an appraisal, is admitted as evidence and allowed by the court.

A hypothetical point: Even if the Plaintiff had presented a TRUE appraisal to the Auction House at the time of the signing of the contract, then it was incumbent upon the Plaintiff to insist on a Reserve Bid in protecting the alleged value of the sapphire.

I know Pacific Auction Gallery quite well, as they are based in Seattle, WA. I have referred many personal clients directly to this reputable auction house. Lynn Kenyon is a personal friend of mine. I was grateful to see that they prevailed in court. Pacific gallery had done absolutely nothing wrong where the Plaintiff's bogus claim is concerned! The Plaintiff's crocodile tears were an especially nice touch at the end of the show.

For more information on appraisal designation programs, please visit http://www.isa-appraisers.org.

This isn't a knock against anyone who has appraiser certifications, but how will any such certification make you (or anyone else) more qualified to judge the value of a sapphire than me? The quality of an appraisal is based on the knowledge, experience and honesty of the person doing the appraisal. Of course, understanding the meaning of "fair value" versus "replacement value" can be important as well. I've seen many, many bad appraisals by well meaning appraisers with lots of certifications and other seminar experience.

The certification is fine, but if you are offering appraisal services take the job seriously and bring the necessary resources to the job (reference materials, database subscriptions, etc). If the object is not something you understand well, find people to help. None of us know it all.

Hi Jack,

In answer to your question, one of the strict requirements of USPAP (Uniform Standards of Professional Appraisal Practice established by Congress in 1986) is that an appraiser only appraise the subject matter that s/he is knowledgeable and experienced in. If the appraiser in question doesn't have expertise with sapphires (precious stones), then they shouldn't appraise them. The USPAP guidelines would agree with you completely on that point!

You mentioned "fair value", but I am assuming you meant fair market value and "replacement value" as being important, but there are other types of value as well that trained appraisers use depending upon their clients needs.

In response to your statement about bringing other people in to help, USPAP also mandates that an appraiser can bring in others to assist in the appraisal provided that those others assisting sign the appraisal and provide their qualifications within the appraisal.

You appear to have a very good understanding of the basics of appraisal it might be worth your time to pursue the appraiser certification. I recommend visiting http://www.isa-appraisers.org. More and more alleged appraisers are being fined by the IRS and Treasury Departments for not performing accurate or correct appraisals. It just isn't worth the risk to for anyone to call themselves an appraiser, when they are not, and further provide a flawed service to a potential client.