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For many years, Commercial Canners Ltd. supplied Gibson Food Wholesale Ltd. with canned food products. These were usually shipped directly to the Gibson Food Wholesale Ltd. main warehouse, but occasionally the goods were directed by Gibson Food Wholesale Ltd. to a storage warehouse owned by Pierson Storage Inc., where Gibson Food Wholesale Ltd. leased storage space. Gibson Food Wholesale Ltd, unfortunately, ran into financial difficulty, and was eventually forced into bankruptcy by Pierson Storage Inc. who had been unpaid on its storage charges for many months. A number of other suppliers of Gibson Food Wholesale Ltd. were unpaid creditors, including Commercial Canners Ltd. When Commercial Canners Ltd. was notified of the bankruptcy, it examined its records and discovered that in the 2 weeks prior it had shipped 100 cases of canned goods to Gibson Food Wholesale Ltd., and 80 cases of canned goods to the Pierson Storage Inc. warehouse. Commercial Canners Ltd. valued the canned goods at $20 per case (average) for a total value of $3,600. Commercial Canners Ltd. contacted the trustee in bankruptcy and discovered that 50 cases of its canned goods were still in the Gibson Food Wholesale Ltd. warehouse, and 80 cases were in the Pierson warehouse. The trustee also advised Commercial Canners Ltd. that Pierson Storage was claiming a lien on all Gibson Food Wholesale Ltd. goods in its warchouse.
Advise Commercial Canners Ltd. How will the claim likely be resolved?
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