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I need you to be more specific in your question(s) if you could. When we answer general ones like "what are my rights" or "what are my options" we have to give general answers and, invariably, the customer responds with "I already knew that". This type of forum works better if you ask specific questions so we know exactly what you are looking for.
As to whether you can report the motorcycle as stolen, the answer would be yes although the police may tell you "it's a civil matter". Whose garage was it taken from?
Then you can definitely report it stolen since it was taken from the property over which you have control.
As to what you can do, it is really your friend's cause of action. First you have to determine what happened to the motorcycle. If the "seller" took it then your friend can sue them to get the bike back plus probably punitive damages. However, if the seller denies he took it then there is really nobody to sue except the thief.
They wouldn't have to give the money back since they had transferred possession of the motorcycle.
Please ask any follow up questions in this thread.
Then they can be sued for all of the damages. You can report it as theft and you may want to talk to a lawyer about getting an injunction against them to prevent them from selling it to someone else. You will need a lawyer for that because injunctions are very complicated. In addition, you can sue for attorney's fees.
The steps to an injunction are:
1) An Application for TRO (Temporary Restraining Order) is filed along with supporting evidence such as affidavits. Usually the Application for Injunction is made at the same time. The TRO is a temporary measure and is not absolutely required before you get an injunction.2) An Ex Parte (without the other side present) Hearing is conducted and the judge either issues the TRO or denies it. If the TRO is issued the judge orders a bond set in a sufficient amount to compensate the other side for any damages accumulated while the TRO is in place if the applicant fails to prove their right to an injunction.3) A hearing on the TRO is set.4) The TRO and notice of Hearing is served on the defendant.5) The defendant should immediately begin following the judge's orders.6) The TRO hearing is held and each side has an opportunity to present evidence and question witnesses.7) The judge makes the decision on whether to convert the TRO to a Temporary Injunction or not.8) If the TRO is converted to a Temporary Injunction then the judge sets a new bond to be in place.9) Discovery is conducted by both sides.10) A request for hearing date is made on the matter of converting the Temporary Injunction into a Permanent Injunction.11) The hearing/trial is held on the Permanent Injunction and the judge issues a ruling.These are what are known as extraordinary remedies and the procedural rules for these as well as the case law are EXTREMELY specific and difficult. If ANY mistakes are made the judge has no choice but to deny the relief and will not likely reconsider it in the future.Just as an example, getting injunctive relief, both temporary and permanent, requires that evidence be offered of:1) An immediate need,2) Which, if not granted, will result in irreparable harm,3) With no adequate remedy at law, and4) (on temporary order) The person requesting the injunction is likely to succeed at a full trial on the merits.If evidence is not offered to meet these four requirements, in a manner that the judge knows this is what the evidence shows, then the petition will be denied.There are more requirements than this depending on the exact facts of the case but it is very, very easy to mess up one of these and end up having to pay damages to the other side just because your paperwork wasn't done properly.