shipper didn't deliver goods

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JT1517

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In April 2007 I sold a plasma TV on ebay to a gentleman in TX. He paid by money order for $1111 including shipping of $300. I used uBid to find transportation for the TV, and several companies bid, and I chose one of the middle bidders becuase they were local and had impeccable feedback ratings. I paid them $250 for the freight and $35 for insurance. They picked up the TV, and 3 days later they called me from TX saying that the TV was damaged and didn't complete the delivery. During the conversation they had stated that the TV had been laid FLAT, and I knew from when I bought one at Best Buy that you are to NEVER lay them flat. I told them since I paid for the insurance that they are responsible for replacing the TV. They said that since the box hadn't been damaged by them, that they couldn't have damaged the TV. The pictures and description from the shippers state that the damage is BEHIND the glass panel on the front of the TV (internal panel is cracked). This damage is consistent with a TV trnasported on it's side. The person who bought the TV and I have communicated multiple times, and they were going to go after the shipper for reimbursement. I e-mailed the buyer in August asking how they were coming along, and didn't hear back. Yesterday I got an e-mail from this man saying he has been in contact with the authorities up here and is pressing charges. If I truly did something illegal here I am more than willing to settle, but I am under the impression that this is the shipper's responsibility. The shipper has not returned the TV to me, and as far as I know they still possess it. I am assuming they are now defunct since their phone numbers have changed, and there is no response to certified letters to their address. I have done all I can to help this guy out, short of losing $1111 of my own money back to him and STILL not getting the TV (broken) back. Any ideas or tips?

Thanks in advance!
 
Anyone have any insight on this? I refunded the buyer in TX his money, and haven't been able to make contact with the shippers. Should I send them a copy of the complaint I wish to file certified letter?
 
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