Legal Question in Business Law in California
Does a company have a "fiduciary responsibility" to properly care for assets seized for lien sale?
Personal property (a few thousand dollars of new furniture and a closed large safe) was seized for lien sale to satisfy unpaid bills for equipment rental, then allegedly discarded by the company as "worthless junk" without any documentation by them of the assets or their process of discard. Did the company have any fiduciary responsibility to properly care for (including but not limited any responsibility to properly inventory, assess value and/or to actually sell) the seized assets and can you cite the relevant code or case law?
FYI: The seizure was provided for under terms of the rental contract specifically for lien sale to satisfy debts, so the seizure itself was perfectly legal.
2 Answers from Attorneys
Yes, they had an obligation to reasonably hold and protect assets, and/or to follow lien sale or disposal requirements. All that is in dispute, and your remedy is either a lawsuit or a counter suit if they file against you in either small claims or superior court. The burden is on you to prove the claimed value of the property mishandled. You've got yourself a messy problem, to prove to the court if you can't settle and resolve it with the company.
I'd have to know more about the contract and the lien sale to give you a specific answer. Many times people tell me that things are perfectly legal, and after looking at them, they are not.
Related Questions & Answers
-
Is it legal for a nonprofit board to make exceptions to its bylaws Asked 4/22/12, 2:47 pm in United States California Business Law
-
After paying a judgement off what do i do to get it off my record Asked 4/20/12, 5:10 pm in United States California Business Law
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
