Question:
Lennie purchased a quantity of pressure-treated lumber from GoodWood Building Ltd. supplies last April. Lennie used the wood to build a deck around the front of his house. By the fall however he found that the wood was starting to rot and it appeared that the stain used to treat the wood was peeling away. When Lennie tried to contact GoodWood Building Supplies Ltd, he discovered that their store had closed and the company was insolvent. Lennie managed to locate the salesman who sold him the wood and he agreed that the wood appeared to be defective. He also told Lennie that the wood had been imported from Thailand so a lawsuit against the manufacturer would probably be long and expensive. He suggested that Lennie bring an action against the directors and shareholders of GoodWood Building Supplies Ltd. The shareholders and directors are Jim, Tim, and Tom. What are Lennie’s chances of success against the shareholders and directors? Does your answer change if GoodWood is an unincorporated business in which Tim, Jim, and Tom are the owners and managers? What are Lennie’s chances of success against them in this circumstance?