Tim, your experience is one of those, "I can't believe this happened" experiences. You did the right thing!! You are a stand up guy!
Unfortunately, the chances of the auction company doing anything to "makes this right" is probably slim. My guess is, the auction company has a "Hold Harmless" disclaimer that the seller signed. So, the seller breached the contract with the auction company by offering a tractor for sale that was stolen and apparently knew it was stolen because they stole it. So, the auction company sold the tractor based on a contract they had with a deceptive seller.
Their attorney knows that your only option is to sue the auction company. Unfortunately, in our society today, this is about the only recourse we ever have. Doing the right thing is not popular anymore!
Their attorney is rolling the dice that you will not spend the money to sue them. Keep in mind, they sold a tractor that was stolen. What is their defense!!
In my, non-attorney opinion, you have a case for legal action against the auction company. They defrauded you under the Indiana Uniform Commercial Code. The question is, do you want to spend the money to file suit against them. Considering the amount of money you are out, you may want to, at least, consult with an attorney that is familiar with the Indiana Uniform Commercial Code.
I would believe, the auction announced the terms of sale at the beginning of the auction. These terms usually include payment agreements and that all items sold are free of encumbrances and have clear title. If there are any limitations concerning the sale of an item, they must be announced.
The Indiana Uniform Commercial Code applies to Licensed Auctions......
Indiana Code 2017 - Indiana General Assembly, 2018 Session
IC 26-1-2-403Power to transfer; good faith purchase of goods; "entrusting"
Sec. 403. (1) A purchaser of goods acquires all title which the purchaser's transferor had or had power to transfer, except that a purchaser of a limited interest acquires rights only to the extent of the interest purchased. A person with voidable title has power to transfer a good title to a good faith purchaser for value. When goods have been delivered under a transaction of purchase, the purchaser has such power even though:
(a) the transferor was deceived as to the identity of the purchaser; or
(b) the delivery was in exchange for a check which is later dishonored; or
(c) it was agreed that the transaction was to be a "cash sale"; or
(d) the delivery was procured through fraud punishable as theft under the criminal law.
(2) Any entrusting of possession of goods to a merchant who deals in goods of that kind gives the merchant power to transfer all rights of the entruster to a buyer in ordinary course of business.
(3) "Entrusting" includes any delivery and any acquiescence in retention of possession regardless of any condition expressed between the parties to the delivery or acquiescence and regardless of whether the procurement of the entrusting or the possessor's disposition of the goods have been such as to be theft under the criminal law.
(4) The rights of other purchasers of goods and of lien creditors are governed by IC 26-1-9.1 on secured transactions and IC 26-1-7 on documents of title.
Formerly: Acts 1963, c.317, s.2-403. As amended by P.L.152-1986, SEC.143; P.L.144-1997, SEC.3; P.L.57-2000, SEC.20; P.L.77-2007, SEC.3.
I have some experience selling items at a local auction in South Central PA. In fact I recently sold a front broom attachment off a Kubota B3030 compact tractor. The auction companies commission was $60.00 + 5% for $$$ over $500.00 for this sale. Their commission depends on the $$$$ that the item sells for.
That said, auction companies sell stuff. They really do not do any checking as to whether the item or seller is legitimate. They record who is selling it and that is about it. They have the seller sign their contract which has a "Hold Harmless" disclaimer as a part of the contract.
Below is the disclaimer and commission part of the contract.
Personally, I wouldn't wait for the auction company to do the right thing, I would talk to an attorney and find out what your legal options are.
Good Luck!!!