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attorney, and Mr. Levinson communicated these results to the
coexecutors. The coexecutors believed that PCGS' grades were
lower than expected and would lead to lower sale prices at the
second auction because the rare coin market was in a "recession".
On June 29, 1992, Mr. Levinson asked Mr. Goldberg to postpone the
second auction. When Mr. Goldberg refused, the coexecutors, as
cotrustees of the Trust, sued Superior to enjoin the second
auction. Ms. Gonzalez represented to the court in seeking the
injunction that the 191 coins were worth more than $12 million.
On September 24, 1992, the Superior Court of the State of
California for the County of Los Angeles (the superior court)
issued an order enjoining the second auction. This was the
beginning of protracted litigation between Superior and the
estate. This litigation was settled 2 years later with the
superior court rescinding the contract with Superior under which
Superior was entitled to auction the 191 coins in return for a
7.5 percent seller's commission, and with Superior's returning
the 191 coins to the estate.
The estate acquired numerous appraisals of the 191 coins
immediately prior to and during the litigation with Superior.
On July 2, 1992, Julian M. Leidman (Mr. Leidman) valued the 191
coins at $8.5 million, based on the assumption that the coins
would be sold individually over an extended period of time in
other than a declining market. The estate used this appraisal in
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