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by artnanika 21 days ago
The best part about this is that the CEO insists that the agreement with the previous store owner is null (thus relieving him of the burden of paying 200k), and yet he also insists on keeping the Lego collection set and selling it. It's comical.
5 comments

From what I understand ownership of the Lego sets never left the Mansells. The consignment agreement states as much.

Even if we take what corporate says at face value (there was no agreement, or the agreement is null, or it's an agreement that the previous owners agreed to) that still just means that the store possesses property that they do not legally own. Whether or not they legally came to possess the sets seems irrelevant here.

I'm not a lawyer but I don't see how the Mansells ever stopped owning the lego sets.

I watched a video from a lawyer who was explaining some of the legal aspects of this debacle, and this one stuck out. Basically, if the Mansells had filed a form with the Oregon Secretary of State, they would have a much simpler claim. That form basically just says "X company is holding Y merchandise that is mine for consignment". Because they (likely) didn't do that, the process for determining their ownership may be more complicated in certain events, and closure of the store might be on that list. Reasons the new owners and BAM corporate are screwed: 1) they made statements during the seizure of the store that they are aware of the consignment and that will transfer to them 2) they were made aware of the consignment in writing by Mansell in a letter terminating the agreement and demanding return of the merchandise after a missed payment in Nov 2025 3) they sold a set from Mansell's collection after 1 & 2 to one of Mansell's confederates 4) they knowingly removed stickers placed on the collection by the previous store owner to identify it as part of the collection

Even if the consignment was undone, they don't get to just keep the collection. The agreement can almost certainly be terminated, but the collection would then be returned to Mansell.

Consignment never transfers ownership without payment.

The payment was never provided, so the ownership never transferred. It has always been with the original owner. This isnt complicated.

Oregon case law comes off looking terrible here. Who would want to do business in this environment?
In what way? It’s not a local concern that when you buy a business you get its obligations. That’s pretty common.
Their B2B goods exchange tax is 0.

That would be why.

Mormons who have Mormon friends in the judiciary.
I believe that's the one thing BAM refuses to acknowledge, they have no legal possesion of the lego sets, that's the beginning and end of it. They are trying their damnest to hide that fact behind a consignment/contract/franchise/corporate/arrests/heroin/lawsuit curtain of smoke.
It's not even paying 200k. It's returning the sets that haven't been sold. They hadn't paid for the sets, they just hold them in stock until they're sold
For a guy like him, 200k is probably no big deal. Instead of doing the right and easy to do thing, he is instead deciding to drag out this whole ordeal. Really says a lot about the guys character.
Would a simple audit not completely destroy this case?

"How did you acquire these sets?"

"Uhm... don't know they just appeared out of nowhere"

Straight to jail.

"This agreement is null and void except for this part that works in my favour"