Quoted from PtownPin:The fact is he paid cash for the game prior to shipment so the only recourse he has is with the shipping company. If he didn't insure the product for the proper amount than its his bad. If he didn't insure at all than he's SOL. Its really not the responsibility of the seller (although he did a piss pore job of packing the game, but the buyer allowed it). In my opinion its all on the buyer and shipping company.
It's a weird situation though, since the seller arranged and paid for the shipping. So it was the seller who made all decisions about shipping company, accepting or declining insurance, and so on. And the seller is the one who has any claim against the shipping company, even though he's got his money and isn't out anything even though the game is smashed up. You'd have to look at the applicable laws in Illinois and/or wherever the seller lives, but I wouldn't be shocked if the law says that when a seller provides and arranges for shipping, they're on the hook to deliver the goods to the buyer in the promised condition unless something else is agreed on.
Now, none of us (other than OP and the seller) knows what conversations were had before the sale, so I wouldn't blame the seller for anything just yet. Other than his ridiculous statement that the game can be restored for less than $200. But I also don't see that the buyer is automatically to blame.
The lesson here is that sellers should never pay for and arrange shipping. "Buyer arranges shipping, at buyer's risk" is the default in pinball sales for a reason. But if a seller insists on providing shipping instead of just reducing the sale price, the parties should have a clear arrangement about what will happen if the game is lost or damaged.