Question
ANALYSIS PAPER (IRAC) On Monday, your supervising attorney met with long-time client Michael Jones, the President of Thomson Leasing, Inc. Thomson Leasing, Inc. leases and
ANALYSIS PAPER (IRAC) On Monday, your supervising attorney met with long-time client Michael Jones, the President of Thomson Leasing, Inc. Thomson Leasing, Inc. leases and sells various types of containers, including but not limited to storage, refrigeration, moving, and shipping containers. The firm has represented Thomson Leasing, Inc. on various legal and business matters, including the company's incorporation, regulatory advice, preparation of leasing documents, and obtaining liability insurance, etc. This day, Michael Jones sought advice regarding a recent incident with a container lease. Danielle's Catering leased several containers, including a refrigeration unit from Thomson Leasing, Inc., for a large wedding they were catering on July 4, 2019. Danielle's Catering used the refrigeration unit to store all the food, drinks, and the wedding cake. The cake needed to be kept in the refrigeration unit as it was an outdoor wedding, and it was a hot and humid day with temperatures in the upper 80s. During cocktail hour, one of Danielle's servers entered the refrigeration container to retrieve more appetizers. For some reason, the feta watermelon cubes and vegetarian summer rolls (the most popular items on the menu) were in the far back of the container, so the server had to maneuver past several cases of champagne and boxes of chocolate and cheese for the fondue stations of; while doing so, the server knocked over a back-up fondue station causing a chain reaction of toppled chocolate, cheese, and champagne slamming the door to unit shut. When the server attempted to open the door, he found the lock was broken, and he was stuck inside. By the time the fire department was able to open the door to rescue the server, the wedding was ruined, and the bride and groom refused to pay the caterer. Thomson Leasing, Inc. is a small company with fewer than a dozen employees, but the business is booming, so many employees have multiple roles. For example, Joshua Deacon, Operations Specialist does everything from delivering and picking up containers, processing customer orders to minor repairs of leased equipment, and assisting Michael in creating and implementing policies regarding accidents, defects, and malfunctions of container units. While picking up the refrigeration unit from the wedding venue on July 5, 2019, the venue owner, Melissa Day, informed Joshua al about the mishap at the wedding the night before including the broken door and fi er department's rescue of the server. After returning the refrigeration unit ot headquarters, Josh submitted an inspection and repair order and immediately left for a two-week vacation. On July 9, 2019, the owner of Danielle's Catering emailed Michael detailing the malfunction of the refrigeration unit dor and requesting reimbursement for the cost of the unit, the loss of profits, and the cost of the few departments' services. Michael was not too concerned about the incident as Thomson Leasing was insured extensively by Newt Insurance. Michael filed a claim with Newt Insurance on July 20, 2019, seeking indemnification. However, Newt Insurance denied coverage because the claim was filed more than 41 days after the incident, breaching the policy notice provision. ASSIGNMENT Your supervising attorney is confident the court will calculate the timeliness of the claim based on when Thomson Leasing, Inc. learned of the incident. Accordingly, she intends to file a suit against Newt Insurance for indemnification and has asked you to draft a short memorandum predicting whether Thomson Leasing, Inc. will be successful. You are to make your determination using only the following case: Georgia-Pacific v. Great Plains (as provided in your Business Entities material).
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