Acme Forwarding Company leased docking and warehouse facilities at a harbour. The lease gave the company exclusive use of the pier and the buildings, but held the company responsible for the maintenance and repair of the pier. Tyrone, a director of the Acme Forwarding Company, was responsible for the authorization of use of the pier by ships bringing cargo for off-loading at the company warehouse. The company policy was that only ships handling goods destined for the company warehouse were to use the pier No authorization would be given unless the ship owners carried adequate insurance to cover any damage that might be done to the pier by careless docking. Tyrone also held an interest in a shipping firm that wished to off-load a small cargo at the city where the Acme Forwarding Company pier was located. The shipping company, however, wished to place the cargo directly onto two trucks rather than use the facilities of Acme Forwarding Company. Tyrone. with the intention

of accommodating the shipping company, authorized** docking of the ship at the pier. When the ship attempted to dock with its cargs, it collided with the pier. causing extensive damage to both the ship and the pier. Under the terms of the lease that Acme Forwarding Company had with the property owner it was obliged to repair the pier. Acme Forwarding Company did so, at a cost of 8120.000. Then it looked to the shipping company to recover the cost of the damage caused by the ship. The shipping company, which had suffered damage to its only ship, was unable to pay for the damage to the pier. Its insurance would cover only a part of the 8120,000 cost of the pier repairs. When the directors of Acme Forwarding Company were informed of the slip ping company's inability to pay for the damaged they were also informed that Tyrone was d shareholder in the shipping company. Discuss the rights of the parties in this case sad explain how these rights might be enforced.

CASE 9 Acme Forwarding Company leased docking and warehouse facilities at a harbour. The lease gave the of accommodating the shipping company, authorized the company exclusive use of the pier and the buildings, but docking of the ship at the pier. held the company responsible for the maintenance and When the ship attempted to dock with its cargo, repair of the pier. it collided with the pier, causing extensive damage to Tyrone, a director of the Acme Forwarding Company, both the ship and the pier. Under the terms of the lease was responsible for the authorization of use of the pier that Acme Forwarding Company had with the property by ships bringing cargo for off-loading at the company owner, it was obliged to repair the pier. Acme Forwarding warehouse. The company policy was that only ships Company did so, at a cost of $120,000. Then it looked to handling goods destined for the company warehouse the shipping company to recover the cost of the damage were to use the pier. No authorization would be given caused by the ship. unless the ship owners carried adequate insurance to The shipping company, which had suffered damage cover any damage that might be done to the pier by careless docking. to its only ship, was unable to pay for the damage to the pier. Its insurance would cover only a part of the Tyrone also held an interest in a shipping firm that wished to off-load a small cargo at the city where $120,000 cost of the pier repairs. When the directors of the Acme Forwarding Company pier was located. The Acme Forwarding Company were informed of the ship- shipping company, however, wished to place the cargo ping company's inability to pay for the damaged pier, directly onto two trucks, rather than use the facilities of they were also informed that Tyrone was a shareholder in the shipping company. Acme Forwarding Company. Tyrone, with the intention Discuss the rights of the parties in this case and explain how these rights might be enforced