Paul Allen's company files lawsuit over World War II-era tank: Suit alleges rare World War II tank in Portola Valley was bought for $2.5 million was never delivered

REDWOOD CITY, Calif. (AP) — A company headed by Microsoft co-founder Paul Allen has filed a lawsuit in the San Francisco Bay Area over a World War II-era German tank it says it paid $2.5 million for but never received. 

 The Panzer IV tank was part of a fleet of military vehicles amassed by Stanford University-trained engineer Jacques Littlefield, who kept them on his family estate up a winding, forested road above Silicon Valley. After his death, his family turned them over to the Massachusetts-based Collings Foundation, which put some of them up for auction in Portola Valley in July.

In the lawsuit filed Wednesday in San Mateo County, Allen's company, Vulcan Warbirds, says it reached an agreement to buy the tank after the auction, but was later told there had been a misunderstanding and the foundation didn't want to give the tank up. By then, it had already wired the money to the bank account of the company that was handling the auction, Auctions America, according to the lawsuit.

The lawsuit claims breach of contract and names Auctions America and the Collings Foundation.

Collings Foundation CEO Rob Collings told the Palo Alto Daily News (http://bit.ly/1pWSlM5) the tank was never sold. The company put it up for auction, but then reached its fundraising goal without selling the tank. The foundation was hoping to raise $10 million from the auction to help build a military vehicle museum at its Stow, Massachusetts, headquarters.

"So the decision was made by our trustees that this was core to the collection and we're going to keep it," Collings said.

He said it was his understanding that Auctions America had returned the $2.5 million. Auctions America spokeswoman Amy Christie said in an email the company understands the matter is in litigation and is working with the parties to reach a resolution.

There are only five Panzer IV tanks in the United States, according to Vulcan Warbirds. The Seattle-based company leases rare military planes and vehicles to the Flying Heritage Collection, a museum located in Everett, Washington, the suit says.

Vulcan Warbirds said in a statement Auctions America had failed to honor its agreement, and it looked forward to restoring the Panzer IV tank and having it join a Sherman tank and other historic military aircraft and vehicles at the Flying Heritage Collection.

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Suit alleges rare World War II tank in Portola Valley was bought for $2.5 million was never delivered 

A company headed by Microsoft co-founder Paul Allen is suing two foundations and an auction house for allegedly failing to deliver a World War II German Panzer IV Tank purchased for $2.5 million but still sitting in a Portola Valley facility.

The complaint on behalf of Allen's company, Vulcan Warbirds, Inc., was filed Wednesday in San Mateo County Superior Court by lawyers with the San Francisco firm Cotchett, Pitre & McCarthy, LLP.

Seattle-based Vulcan Warbirds acquires rare military vehicles and planes and leases them to the Flying Heritage Collection, a museum located in Everett, Wash., according to the suit.

In July, Vulcan Warbirds representatives discovered that a rare Panzer IV Tank that had been part of Stanford graduate Jacques Littlefield's collection would be auctioned off at the Military Vehicle Technology Foundation in Portola Valley. The historic artifact was valued at $2.5 million.

On July 11 and 12, items from the Littlefield collection were auctioned off through Auctions America, but a $1.5 million bid from Vulcan Warbirds representative Deborah Gunn and a $1.7 million bid from an unnamed organization were not accepted, according to the suit.
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After the auction, Gunn asked a woman helping to conduct the auction, Megan Boyd, whether the Collings Foundation would be willing to sell the Panzer IV tank, according to the suit. The Collings Foundation, which also collects historical artifacts, received the Littlefield collection after Jacques Littlefield died. Boyd works for RM, Inc., which is affiliated with Auctions America.

On July 18, Boyd, acting on behalf of the Collings Foundation, sent Gunn an email offering the Panzer IV Tank to Vulcan Warbirds for $2.5 million, according to the suit. On July 25, Vulcan Warbirds wired the money for the tank to the bank account of Auctions America. In August, however, Vulcan Warbirds learned that the tank, which still sits in Portola Valley, would not be released.

In an Aug. 20 email to Auctions America representatives, Gunn stated that Vulcan Warbirds learned from the executive director of the Flying Heritage Collection that Rob Collings, the CEO of the Collings Foundation, claimed the foundation had not meant to sell the Panzer IV Tank and there had been a "misunderstanding."

The suit alleges breach of contract and names the Military Vehicle Technology Foundation, the Collings Foundation, RM Inc., and Auctions America as defendants. It seeks to obtain the Panzer IV Tank, as well as damages and attorneys fees.

In a phone interview Thursday, Rob Collings said any deal made after the auction ended isn't valid.

"We never sold it," Collings said. "It's my understanding that Auctions America tried to return the money. Collings Foundation has not received any of this, not the $2.5 million. We would not accept it."

The World War II tank was put on the auction block because the organization hoped to raise $10 million to build a military vehicle museum. Offers for the tank didn't match the minimum bidding requirements, which is why they were rejected, Collings said. Now the tank is off the market.

"The reason why it was offered at the auction is we have to raise a certain amount of funds ... that amount was reached," Collings said. "So the decision was made by our trustees that this was core to the collection and we're going to keep it."

Vulcan Warbirds did not respond directly to a request for an interview about the suit and instead forwarded a written statement.

"There are only five Panzer IV Tanks in the United States, and this was purchased to be displayed in a specially designed space where the public can see these incredible machines in action," the statement read in part. "Auctions America has failed to honor our agreement and yesterday we sued it and the Collings Foundation, the former owner of the tank, to enforce our contract. We look forward to restoring the Panzer IV Tank and having it join our Sherman tank and other historic military aircraft and vehicles at the Flying Heritage Collection."

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