Comment by everforward
17 hours ago
> I'm not a lawyer but I don't see how the Mansells ever stopped owning the lego sets.
The store declares bankruptcy, and corporate is a prioritized creditor. From a certain view, based on the consignment contract means they wanted money, and I could see an argument that they're really owed $200k rather than the physical legos. Ie they're effectively just another creditor, and probably not a prioritized one.
"Ownership" gets very odd when you hand goods over to someone with the expectation that you'll never see those goods again, but will get money. It gets even weirder when that someone ceases to be a legal entity, and the goods are now in possession of someone you never had an agreement with. The store obviously has an obligation to hand over either money or the goods, but it's not clear that obligation is transient to anyone that ends up with the goods.
I don't know how effective the wording of the original consignment agreement would end up if tested in a suit. It reads "Consigned merchandise shall remain the property of Mansell until sold".
On the other hand, without the agreement, how can one prove the expectation that the goods were handed over with, at all? Without establishing that expectation wouldn't the ownership of the goods just stay with the original owner at all times?
It would make sense that there are some ways you can abandon property you own in a way that someone else can swoop up and take ownership it without having to give it back, but do any of those potentially apply here?
> The store obviously has an obligation to hand over either money or the goods, but it's not clear that obligation is transient to anyone that ends up with the goods.
It is extremely clear. You are just detailing the buffer being used to pretend otherwise.