Is it illegal to record a call *at all*, or does it just make the recording inadmissible in court?
IANAL, but my understanding is it's an illegal offense in itself to record a call in CA without consent of all participants, if they had a reasonable expectation the call would be confidential.
http://www.dmlp.org/legal-guide/california-recording-lawThat said, I doubt it matters. The S.A. dealer appears to have a lot of additional evidence.
I'm surprised he gave Hatfield as many additional chances as he did, and invested so many more resources and trip to the US, after the original failure to deliver and the bad-faith negotiation (assuming the story is correct).
S.A. isn't a large market, in the terms of the number of people who could afford and might be interested in an LS-218; There's already a Zero importer, but Energicas at half the price of a LS-218 would seem to be a better fit.