Lawsuit dismissed in fight over rare coin

Two friends who forged a friendship over the discovery of an extremely rare coin may not be able to sell it as they had planned because of a San Diego judge’s ruling Wednesday.

Randy Lawrence and Michael McConnell were preparing to auction the one-of-a-kind 1974-D aluminum penny earlier this year. That is, until they received a letter from the U.S. Mint saying the coin remains property of the federal government.

The men filed a lawsuit in March seeking a judgment declaring them the coin’s true owners.

The government responded by filing motion to dismiss the lawsuit, arguing that Lawrence and McConnell failed to properly state a legal claim showing they are entitled to such judgment from the court.

U.S. District Judge William Q. Hayes wrote in his order that the men failed to offer sufficient facts to support conclusions that they are owners of the aluminum cent with a “legal right to have their coin sold at public auction.”

However, Lawrence and McConnell can file a motion within 30 days, asking permission to refile an amended complaint.

Lawrence, 56, said Wednesday that he was surprised by the judge’s ruling. He had not yet had an opportunity to speak McConnell or their attorney, but said he would be interested in going forward with the lawsuit.

“In my opinion, we continue the fight,” Lawrence said in a phone interview.

McConnell and the plaintiffs’ attorney Armen Vartian did not immediately return calls seeking comment.

Hundreds of 1974 aluminum coins were minted as part of a proposal to replace copper pennies, but Congress ultimately decided against them, and the remaining coins at the Philadelphia Mint were melted down.

The government contends that because the aluminum penny was never issued as legal tender, the one in question remains government property regardless of how long it was in private hands.

Assistant U.S. Attorney Joseph Price said in a phone interview that Lawrence and McConnell failed to explain in their lawsuit how they obtained the coin other than by stating that Lawrence’s father had worked at the Denver Mint.

“We believe that the plaintiffs should surrender the piece at this time,” he said.

Lawrence, a real estate agent who moved to La Jolla last year, has said that he inherited the penny in 1980, when his father died. Lawrence’s father worked at the Denver Mint for about 20 years, retiring as an assistant superintendent.

He said his father received the coin as a gift.

The coin was tucked away in a desk drawer for decades until recently when Lawrence sold it to McConnell, owner of the La Jolla Coin Shop.

McConnell thought initially that it was low-value souvenir, but uncovered the penny’s history later and notified Lawrence. After learning that the coin could fetch up to $250,000, they decided to auction it and donate part of the proceeds to charity.

Lawrence has said they hope to donate $100,000 to local homeless programs.