Question
Brute Manufacturing Ltd. operated a manufacturing business. They sold heavy equipment to various businesses. Brute Manufacturing operated out of a building where they were a
Brute Manufacturing Ltd. operated a manufacturing business. They sold heavy equipment to various businesses. Brute Manufacturing operated out of a building where they were a tenant of Bangor Metals Corp. In summary, Bangor Metals Corp. owned the building that Brute Manufacturing manufactured from. Brute Manufacturing leased the space from Bangor Metals Corp. Of late, Brute Manufacturing sold a large used spray paint booth to Steelcraft Ltd. The spray booth was very large, was fastened to the floor and roof and connected to the electrical and natural gas supply. At the time of the sale of the spray booth to Steelcraft, the spray booth was part of the manufacturing equipment owned and operated by Brute Manufacturing. Upon discovering the sale, Bangor Metals Corp. claimed they were entitled to the spray booth and that Brute Manufacturing should not have sold it.
- What is the main legal issue?
- Explain the arguments for each side.
- Render a decision.
- What could have been done to prevent such a dispute and legal action?
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