Originally Posted by vadslram
The other dealer is in a heap of trouble. They are supposed to double check the VIN physically BEFORE they process the paperwork. Your dealer did.
If there is any legal actions to be done it is by the other owner since he has been driving an illegal vehicle for however long. The other dealer is looking at losing it's access to DMV processing, which will hurt their business pretty bad.
There is no other dealer - re-read the original post. There is one dealer involved and someone in the back room that processes sales paperwork made a mistake and gave another customer some paperwork with the same VIN as the OP. The other customer got to their DMV office first.