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"You have the conn, sir," Hibbs says to one of his clerks before heading into the store's dingy back room, a fortress of solitude constructed out of shipping boxes, filing cabinets, a stained couch, and cigarette ash. Here, lighting a smoke and speaking at length, he explains how he came to the decision to sue Marvel Comics for $18 million, taking on the biggest producer of superhero comic books -- and the bread-and-butter of the comic-shop owner.
The mild-mannered owner of a low-margin business vs. the corporate juggernaut. Who would win?
Comic books are a funny business. Superhero fans are fussy -- they have favorite characters, pet artists and writers, and fickle tastes. They also have a penchant for speculation, gobbling up multiple copies of a much-hyped issue in the hopes that it will increase in value over time (burned WorldCom stockholders might consider reinvesting in old issues of Daredevil). The upshot of this is that the burden is on a comic-shop owner like Hibbs to figure out the ever-shifting pulse of comic-shop patrons, who account for the vast majority of comic sales. That burden gets heavier with the sales policies of large companies like Marvel, which dictate that shop owners can't reorder issues, or -- in most cases -- return the ones that don't sell. So Hibbs has to be good at figuring out what his clients want, and when they're going to want it.
"It's unlike any other periodical business in the world," Hibbs says. "If a newsstand gets a hundred copies of Time and they sell one, they can send the other 99 back. If we order 100 copies of a comic book and sell one, we eat the other 99 copies."
Even if it's a restrictive policy, it's still fair play, and it works -- provided the comics show up when Marvel says they will. And that's the issue at the heart of the suit. When comics arrive late, sometimes months after they are scheduled, Hibbs says, fans tend to bolt. Marvel's policy states that comics that show up more than 30 days later than promised are returnable, but (according to Hibbs' official complaint) Marvel wasn't accepting returns on the late comics.
All of this would just be fanboy griping, except that about eight months ago Hibbs decided to do a little math. He calculated that his losses from Marvel comics he should've been able to return and get credit for, but wasn't able to, totaled about $2,000 over six months. That's not much, though for a low-margin business like Comix Experience, "that's several months of electricity bills. That's employee salaries for a month."
Still not a blockbuster lawsuit, though, and his attempts to plead his case with Marvel and its distributor led to a lot of unreturned phone calls and e-mails. But wait: Consider $2,000 of losses over six months, figure there are approximately 4,000 comic shops in the U.S. that have to play ball the same way ... that's $8 million. Goodbye small claims court, hello class action.
"That's not chump change," says Hibbs. "On the one hand [Marvel is] shipping everything late, and on the other hand they're saying, 'Order more up front, otherwise you won't be able to get any more.'
"I have questions [as to] whether that's calculated or not."
That question is where an additional claim for $10 million comes from. Arguing that Marvel "willingly and maliciously" did all this, Hibbs' complaint slaps a fraud charge on top of the claim of retailers' losses.