Reference no: EM132232531

Brothers Aurelio and Hugo V. Garcia founded a trash removal business called Garcia's, Inc., in the early 2000s. Hugo served as president and director. Garcia's decided to lease trucks and equipment to United Leasing. However, United required, as a part of the agreement, that the stock of Garcia's would be collateral and that United could vote Garcia's share in the company if Garcia's defaulted. Suddenly, United claimed that Garcia's had defaulted, and United liquidated the company's assets and took control. James C. Lehner, a former employee of United, formed the Lehner Family Business Trust in 2005, and shortly thereafter Lehner offered Hugo $50,000 to assign all claims against United to the trust. Hugo executed the requested assignment, which assigned all of the legal claims, rights, and causes of action that Garcia's, “a Virginia corporation in dissolution,” and Hugo, “individually and as trustee in liquidation for Garcia's, Inc.,” had under the equipment leases with United and otherwise. The Lehner Trust sued United Leasing for breach of contract, claiming that “[b]y assignment, the Trust acquired all of Garcia's claims, causes of action, choses in action, rights of action, rights and interests against [United Leasing] and all claims and rights, etc., relating to the Garcia's Leases.” Also, the trust claimed that United had been secretly holding over $1 million from Garcia's, which rightfully deserved it. Was the Trust right in suing United Leasing? [United Leasing Corp. v. Lehner Family Business Trust, 279 Va. 510 (2010).]