For many years, Commercial Canners Ltd. supplied Gibson Food Wholesale Ltd. with canned food…

For many years, Commercial Canners Ltd. supplied Gibson Food
Wholesale Ltd. with canned food products. These were usually shipped directly
to the Gibson Food Wholesale Ltd. main warehouse, but occasionally the goods
were directed by Gibson Food Wholesale Ltd. to a storage warehouse owned by
Pierson Storage Inc., where Gibson Food Wholesale Ltd. leased storage space.
Gibson Food Wholesale Ltd., unfortunately, ran into financial difficulty, and
was eventually forced into bankruptcy by Pierson Storage Inc. who had been
unpaid on its storage charges for many months. A number of other suppliers
»

For many years, Commercial Canners Ltd. supplied Gibson Food
Wholesale Ltd. with canned food products. These were usually shipped directly
to the Gibson Food Wholesale Ltd. main warehouse, but occasionally the goods
were directed by Gibson Food Wholesale Ltd. to a storage warehouse owned by
Pierson Storage Inc., where Gibson Food Wholesale Ltd. leased storage space.
Gibson Food Wholesale Ltd., unfortunately, ran into financial difficulty, and
was eventually forced into bankruptcy by Pierson Storage Inc. who had been
unpaid on its storage charges for many months. A number of other suppliers of
Gibson Food Wholesale Ltd. were unpaid creditors, including Commercial Canners
Ltd. When Commercial Canners Ltd. was notified of the bankruptcy, it examined
its records and discovered that in the 2 weeks prior it had shipped 100 cases
of canned goods to Gibson Food Wholesale Ltd., and 80 cases of canned goods to
the Pierson Storage Inc. warehouse. Commercial Canners Ltd. valued the canned
goods at $20 per case (average) for a total value of $3,600. Commercial Canners
Ltd. contacted the trustee in bankruptcy, and discovered that 50 cases of its
canned goods were still in the Gibson Food Wholesale Ltd. warehouse, and 80
cases were in the Pierson warehouse. The trustee also advised Commercial
Canners Ltd. that Pierson Storage was claiming a lien on all Gibson Food
Wholesale Ltd. goods in its warehouse. Advise Commercial Canners Ltd. How will
the claim likely be resolved?

»

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