jeweler chipped my diamond- what are my rights?

[denverappraiser]

Miny,

I apologize if I'm sounding harsh. The jeweler is clearly at fault and he should make it right. Customers often have unreasonable expectations in this kind of situation. I don’t mean to accuse you of being a golddigger. You should end up with a ring that is every bit as good as the one you started with and you should not be required to pay anything for it. You should get this as quickly as is reasonably possible and you should be treated graciously and politely throughout the entire transaction.

The fact that he might have made a mistake in agreeing to do the job is irrelevant. He took in the job and so now he has a problem. He has to deal with it. In practice, the price you paid is also irrelevant, for the reason you point out. It’s a mess. Here’s my suggestion for a resolution:’

Go back to the appraiser and get a ‘damage report’ done. Pay him and get it in writing. This should contain a full description of the piece and his independent estimation of the grading prior to the damage and a professional opinion about the recut potential. Ignore the IGI report entirely.

Allow the jeweler to find some replacement stones for you to choose from that will meet the specs in the above report. Look at them and select one. Take it back to the appraiser and get the new stone examined and get his confirmation that it is, in fact, comparable. If not, have the jeweler get another one. Repeat if necessary. When you have an acceptable stone, take it back to the jeweler and have him repair any prong damage and set the stone.

Go back to the appraiser and get an appraisal on the finished ring. Get confirmation that the new stone is undamaged and that all prongs are secure. Again, pay him and get it in writing.

The jeweler should pay for the stone, all shipping costs, all labor costs and he should reimburse you for both bills from the appraiser although the appraiser should be working for you, not the jeweler so you should pay them directly.

Give the jeweler the salvage. If you want to keep it for sentimental reasons, negotiate to buy it back from him. The appraiser should be able to assist you in deciding on an appropriate price. You should be responsible for the appraisers fee on this one. You should feel free to have the jeweler, or one of his employees do some or all of this running around if you don't want to do it yourself.

Yes, $2000 for a 1.14 G-I1 is a pretty good deal.





Neil Beaty, GG ISA
Independent Appraisals in Denver

 

[reena]

Date: 12/3/2004 1:36:54 PM
Author: minykim1
Isn''t it fair to say that we want him to replace our diamond with a diamond of the same color, clarity, and carat. that is what I meant by the value not $6,500.

yes, i think it''s fair to EITHER (1) ask for the amount you paid, or (2) ask for a replacement stone of similar color, clarity and carat. but, do you really want him replacing the stone after the moissanite stunt? i would go for the cash. unfortunately, with the cash, i think you''ll have a hard time getting him to pay you more than you paid for the stone, even if you got a great price on it.

 

[pearcrazy]

Can you give him the diamond, ask for the $2000 that your fiancee paid for the ring and then go back to where he got it and try to get another one just like it for the same price?

 

[RockDoc]

Min Kim

It is interesting to see everyone commenting on the lability of the jeweler. How liable he is and the legal resolution depends on the laws of your state. It is possible that replace the stone in such a way to make you whole would be how an insurance company would replace the diamond. You do need to at least know what the law says in your jurisdiction. Your state''s law may be what the others have said, but you are in a better position being informed as to the facts rather than "guessing" without knowing.

Your position of what you paid shouldn''t matter in settling the matter. Suppose you paid $ 6000 for it or conversely the same if you paid $500.00. This is why the price you paid could be "useful" but not necessarily in compliance with the law in your area. If you bought the diamond at a price that says you got a great deal, yu should be entitled to the benefit of the bargain you made.

What does seem strange is the 60% loss of carat weight to replace a chip. If it is true that recutting will result in that kind of loss of weight, the "damage" is probably more serious than a chip. You should provide a detailed description of the damage. Did the stone have a lab cert? If so the plot should be consideration with respect to the current plot of the stone.

In addition, if there is a skilled and qualified diamond cutter in your area, you might want his opinion as to whether or not the stone can safely be recut, and what you''ll get afterwards.

What also "bothers" me is why the appraiser is doing this for free. I know you want to avoid the court, and I support that, however a trier of fact would find it suspicious if that fact came out in court. The appraiser''s testimony could be totally impeached.

I also find it strange why he would offer you a retail price, when certailnly he could replace it at his cost (which may or may not be more or less than what you paid). I don''t understand the replacement with another stone that wasn''t a natural diamond. As Neil pointed out moissannite cost more than the $80 you mentioned.

I would also suggest if a settlement with him doesn''t go smoothly to consider mediation. Sometimes its far better to have a mediator who is knowledgeable about this situation handle it for you.


Rockdoc

 

[reena]

just in case this was not clear, i was not purporting to advise minykim of what the law might be in her state or what would happen if she were to take the jeweler to court. i was merely giving her my opinion, from a non-legal perspective, of what i think she is entitled to/should ask for from the jeweler in this situation.

the only exception to this is my comment about accord and satisfaction, which is a common law principle that generally applies across jurisdictions and of which i at least wanted her to be aware.

 

[RockDoc]

Hi Reena...


I didn''t intend to criticize you or any other person. I apologize. My intention to Min Kim was to get prepared properly, as I''m sure you agree with.

You do write useful posts as do many others on this forum. Keep it up.

Rockdoc

 

[reena]

Date: 12/3/2004 3:12:25 PM
Author: RockDoc
Hi Reena...


I didn''t intend to criticize you or any other person. I apologize. My intention to Min Kim was to get prepared properly, as I''m sure you agree with.

You do write useful posts as do many others on this forum. Keep it up.

Rockdoc

hey, not at all. i didn''t take it that way. but when i saw what you wrote i thought, shoot--i''d better make sure it''s clear that that''s not what i meant.

 

[minykim1]

I am engaged to a man who is in the military so I can''t quite label myself as a golddigger. He shopped for months to get me a 1 carat ring that he can afford. My post was intended to get some helpful advice since I really don''t know much about diamonds or how to go about in resolving this matter which would be fair to us and the jeweler.

I thank you all for your wonderful advices.

miny

 

[fire&ice]

An I1 is not, by it''s nature, a poor quality stone persay. Many here on PS have an I1. BUT, they can be trickier to set as many times they have fractures that could cleave under pressure. My setter had certain variables in which he would refuse to set a stone. Also, he mentioned that usually if something does happen that not much is lost in the recut. Your stone would have to have substanial meltdown for it to be cut to a .50. But, I don''t know - maybe recutting an I1 has inherent risks as well?

What does it look like to you? Is it a small chip or has it cleaved in two? How big is the chip?

None of us can answer how much carat weight will be lost over the internet. Maybe it''s me; but, wouldn''t it be prudent to have 1. an independent appraiser evalutate the stone & 2. a stone cutter to evaluate how much carat weight would be lost in the re-cut? Not much of this story makes sense; but, fact can be stranger than fiction.

Again, I''m trying to be logical here. The jeweler is not out the total amount. He will recoup something with the recut diamond which he will own. The jeweler should find a diamond (his wholesale) that matches the specs of your stone. You should be made whole.

Question, is he really libel for making you whole? Must he get a disclaimer regarding risk *before* he sets the stone - or is this implied in the industry? He may not have to do anything.

I am assuming that this diamond was not insured with an insurance carrier. If it was, you wouldn''t be in this situation. Your insurance would be responsible for making you whole.

Moissante? Are they really *that* hard to tell the difference? Wouldn''t a prudent jeweler - even if he bought off the street - make every effort to insure the diamond was indeed "real"?

Yep, goofy as the day is long. What a string of poor behaviour. 26 years in business? He''s one lucky dude; or, maybe all his bad luck happened on one day.

Good luck. I know you want a sooner rather than later resolve. But, you must consider what will make you happy in the long run. Sometimes things take longer to get it right.

I have to say if this story is what is it - I''m shaking my head at this industry.

 

[Bikergirl]

If you are engaged to someone in the military, I''m going to make an assumption - that he is insured with USAA. If this is the case, I would contact them to see what would happen if you filed a claim. I know USAA is able to purchase diamonds in bulk (not sure where from, sorry) and has very reasonable prices for their insured. I also know that my ring is insured through them, and the policy states that if something were to happen to my ring, my diamond would be replaced with a like stone, supplied by their vendor, complete with proper certification. You might be able to get a comparable stone fhrough them if you file the claim.

It doesn''t hurt to ask, and it doesn''t mean you *have* to file the claim. But it might be worth the phone call to find out what the process would be, and what the end result would be.

 

[pyramid]

Date: 12/3/2004 12:35:42 PM
Author: minykim1
Patty and others-

The appraisser at Windsor was clearly aware of our delicate situation and had offer to appraise the ring for free to help us resolve this matter. I think the appraisser was shocked as the rest of us b/c he actually called another appraisser to confirm and then both told the jeweler his appraissal of his ring behind closed doors then called us in later to advice us not to consider the ring for a trade and that it was moissanite.

The jeweler that chipped our ring has been in business for over 26 years so I would assume that an ''experienced'' jeweler could tell a genuine diamond from a moissanite? I don''t know. Why he came along to the appraissal beats me? One thing that did gave him away is that he brought with him a 2nd diamond ring for exchange which we turned down immediately.

Another jeweler also pointed out that if he is as experience as he claims to be should have taken extra precautions before even considering taking a diamond out of it''s setting and if my diamond was really that bad of a quality as he claimed it was-There is also a stress factor in a diamond that could been there long before when it was originally set. I am sure the jeweler didn''t mean to chip our diamond but the moissanite really hurt me.

I am no diamond expert- I am just a girl who was happy to have received a diamond engagement ring from the man that I love even if it is of poor quality that I''ve had to hear over and over again. This really sucks.

Thank you all for your advice and support.

Above your wrote ''There is also a stress factor in a diamond that could been there long before when it was originally set''

Who told you about this? Did the insurance company give you insurance on the ring with this being present in the stone?

 

[minykim1]

Fire & Ice- The chip was big enough to drop jaws of most jewelers we showed it to- they all just shook their heads. I don''t know how else to explain the chip.

Bikergirl- Thank you for your advice- - I will definitely talk to my fiance about USAA.

Pyramid- The stress factor of the diamond is something that could have happened to a diamond long before the resetting but nobody could tell - this is what I was told by diamond expert at windsor and the appraisser. I s''pose they were trying to explain to me that it wasn''t the jewelers fault but it''s certainly not ours so whose fault is it? mother nature?

I honestly don''t know anything about a diamond but that it''s a rare magnificent stone - I''ve never owned one till this past week. I came upon this website and just wanted some advice- not to degrade the diamond industry. I am surprised at all the replies with very helpful advices.

miny.

 

[Superrob]

Don''t cash the check...court could possibly consider that compensation for the chip...if u can get the purchase price take it...litigation is to expensive...BBB, shame on u etc. good shot...threaten litigation but use only as a last resort...not sure how expensive small claims court is...report him to BBB anyway.

Date: 12/2/2004 8:59:59 PM
Author:minykim1


My fiance gave me a beautiful 1.14 carat certified engagement ring. We were recommended to a local small jeweler to resize and change the band. We took it there to the local jeweler and the owner talked us into remounting the diamond for a small charge b/c he sees that it is not straight and that it would only take 30 minutes! We were devastated when we walked in half an hour later and he admitted to chipping our diamond.

This jeweler threw a fit and totally blamed the chipping on the poor quality of our ring. He had a copy of our resizing certificate where he saw what my fiance had paid for the ring and offered us that amount only OR to keep our chipped diamond and he offered us half of what we had paid for but the value of our ring is appraised at more than triple of what we paid. We were so frustrated that we took the chipped diamond and his check and left the store.

We went to several diamond jewelers the next day for their opinion.

Here is what we learned: Our diamond is almost worthless due to the chip and that if we did have it recut it that it would costs us somewhere from $500-600. and bring the 1 carat down to half. We were told that most Jewelers when at fault would replace a chipped diamond with an diamond from their store of equal value.

I went back to the jeweler who had chipped our diamond with his check and our diamond ring and demanded that he should replace our ring with another diamond ring of equal value. Still visibly more upset than us- He finally agreed to giving us another diamond ring which he claimed was more valuable than our diamond ring and that we must give him not only his check and our chipped diamond ring back to him but we must give him $500.00 more b/c his ''uncertified'' diamond had more value. Before agreeing to anything else- we asked him if we could get his ring appraised first before making the exchange, he not only agreed but closed his business and came along. To our disbelief, the appraiser said the ring he tried to offer us was a ''Moissanite'' on yellow gold that was worth no more than $85.

The jeweler took his moissanite and drove off angry at us once again.

We still have his check and our now worthless ring. What are our rights? We''ve contacted lawyers but half of them hung up on us. Could anyone please give me some advice as to how to handle this situation. Are we only entitled to what we paid for or the full value of our ring? Small claims court? Should we have involved the police when he tried to give us a fake diamond ring?

I would appreciate any advice. Thank you.

miny

 

[solange]

There is something I do not understand and perhaps I am not enlightened enough to comment. It was my impression that jewelers have their own insurance to compensate for theft or damage. Insurance companies have adjusters who are sent out to settle such matters.

I do not understand why the jeweler offered to pay you out of his pocket rather than put in an insurance claim. He may be required by law to have such insurance in order to run his business.

Even if you have your own insurance on the ring, your insurance company would go after his insurance company for payment since it was he and not you who broke the stone. Also an effort would be made to replace the stone with one of equal value or give you the amount the stone was insured for if it is a realistic amount. They probably will not give you more than the replacement value of the stone regardless of how much it was insured for.

If this matter has not been settled to your satisfaction by now, I think you should send the jeweler a Certified letter, return receipt requested, with copies to the department of Consumer Affairs and Better Business Bureau requesting that he turn the matter over to his insurnace company. I also believe there is an agency called the Jeweler's Vigilance Society or something like that. Perhaps one of the vendors here could supply the names of places where you can file complaints.

Hopefully this matter is already settled. However, if not and you leave the ring and take a check, there is always the danger that he will stop payment on the check and you will wind up with nothing. If you have not yet gotten satisfaction, the best way to get what you are entitled to is through his or your insurance company.

 

[denverappraiser]

Date: 12/5/2004 10:25

1 PM
Author: solange

I do not understand why the jeweler offered to pay you out of his pocket rather than put in an insurance claim. He may be required by law to have such insurance in order to run his business.

The insurance polciy on jewelery stores is caalled a jewelers block policy. There are only a few companies that offer them and they cover things like burglary, customer and employee theft, fire, general liability, etc. This is a specialty area in the insurance business and, as Steve points out, these policies can get quite expensive depending on the nature and location of the store. Most jewelers decide to get one anyway because their risks are so high and unpredictable in some of these areas. I know of none that will cover damage to a piece caused by the jeweler or one of their employees while in the usual process of business. Craftsmanship issues are simply not an insured loss. Incidentally, these policies usually have a very high deductible. This issue here is going to end up costing someone about $1000-1500, which would almost certainly be below their deductible even if it was a covered loss.

Neil Beaty, GG ISA
Independent Appraisals in Denver

 

[pearcrazy]

Ugh!!! USAA diamonds!! Just one sentence: You can do better here on pricescope!! I find their prices to be wayyyy too high for the cut, color and quality of diamond you get. Unless her fiancee had the diamond added to his homeowners or renter's policy they won't cover it for the loss. I have USAA insurance and I had to have my diamonds added as a rider to my homeowner's and pay more. I'm surprised the jeweler doesn't have insurance to cover him for his damage to the diamond.

Edited to say: I just read Ned's explanation about the jeweler's insurance!

 

[fire&ice]

Date: 12/6/2004 9:29:33 AM
Author: pearcrazy
Ugh!!! USAA diamonds!! Just one sentence: You can do better here on pricescope!! I find their prices to be wayyyy too high for the cut, color and quality of diamond you get. Unless her fiancee had the diamond added to his homeowners or renter''s policy they won''t cover it for the loss. I have USAA insurance and I had to have my diamonds added as a rider to my homeowner''s and pay more. I''m surprised the jeweler doesn''t have insurance to cover him for his damage to the diamond.

Edited to say: I just read Ned''s explanation about the jeweler''s insurance!

I thought that USAA only offered insurance on theft. At least that''s what one poster said a while back.