Non Payment of Goods by Wholesaler - Next Steps?

KevRossi

Hi. Have a scenario here, just need some opinions on how to proceed.

A (myself) delivers goods to B (who is a wholesaler) for around €10,000.

B starts to sell good to the general public, but doesn't pay A.

The goods are stored outside in a yard, (they are weatherproof), and at the current rate of sale, it would take about 6 months for them to be fully sold.

It turns out that B is in financial difficulty and the chances of getting anything out of him is effectively zero, list of creditors is well over €300,000.

He hasn't endured any extra costs for testing the items, or for advertising them, as he's using old photos and old blurb on the website to sell it.

What recourse has A here? I've engaged a solicitor. But am wondering if I can just show up and remove the goods myself. They are just stored there in a big yard on the pallets that they were delivered on. B sells numerous other items, this is just part of his inventory/stock.

It's a bit obvious that the longer he has it, the less of it will be left if I do get a court order to remove the goods.

And if I was given a court order to remove them, there are several places he could move them to in the space of a few hours. There's about an artic load of good there.

So what's the best and fastest thing to do. I'm not interested in bankruptcy proceedings as I understand there are far bigger fish who are after him for that. I just need to know if I can go in and take the goods, or what's the fastest way to do this.

The goods still have the stickers and shipping labels on them, so proof of ownership is no issue.

or does someone know a good solicitor in Dublin (PM if needed), as I think the one I was recommended has little experience in this area.

Thanks in advance for any advice.

Peregrinus

https://www.boards.ie/discussion/2058355467/non-payment-of-goods-by-wholesaler-next-steps

Depends on the terms of the contract of sale between A and B.

You can have what's called a "retention of title" provision in your contract — even after I have delivered these goods to you, they remain my property until you have paid me for them. If you have such a clause then you still own the goods and are (at least in theory) entitled to recover them.

But if you've no such clause then title to the goods is generally taken to pass on delivery — once you deliver them you no longer own them; instead what you own is a debt due to you from the purchaser.

That's presumed to be the default position if you have no express retention of title provision, especially this case because you are dealing with a merchant you, you are well aware, intends to sell the goods on after you deliver them. How could he sell goods that he doesn't own?

CramCycle

Is he being civil? As in if you turn up and say, listen, your losing your hole here, I don't want to be added to the list of creditors, I will write off what you have sold already if you let me walk with what is left. Is there any chance he would do that?

Your unlikely to get a court order in time and his other creditors will take large amounts of what is left if you wait till he goes under. You

Gloomtastic!

https://www.boards.ie/discussion/comment/122246353#Comment_122246353

This

enricoh

Tractor, bale trailer and pallet forks. This fella will have 101 people screaming at him, paying none n zero chance of ever getting a fiver the legal route. Solicitor only throwing good money after bad. One mornings stress or 10k hit.

KevRossi

OK, thanks for all the advice. Sorry for not getting back earlier but things moved very quickly the past few days.

We had a form of retention of title (goods supplied via a German company), sent a mate down to buy €300 of stock, filmed it all covertly, and showed him the evidence yesterday. Explained that it's effectively theft, he rang his solicitor and we picked the goods up with no issues this morning. Down about €2,500 over all, but that's just business I guess.

Thanks again boardsies!