Unknowingly purchased and resold stolen goods

[voicedata2007]

I am in NY state.

About 6 months ago, I purchased some computer networking equipment from a seller across the border in Canada. The seller claimed that they were going out of business, and were liquidating their equipment assets.

I am an equipment reseller, and I travelled to meet with them and inspect the goods. I do this type of thing all the time, buying capital assets from failed businesses. Upon inspection, I paid them $12,000.00 for the equipment, loaded it, and returned to the states.

Recently, I was contacted by the vendor who originally sold the equipment. They are claiming that the company I purchased the equipment from never paid them for it, and are asking for me to to return the equipment to them, under veiled threat of legal action against me.

The problem is that since I am a reseller, I resold the equipment within a few weeks of purchasing it. I have records of the various parties I resold the equipment to, but they are certainly not going to return it without being reimbused. I do not have the funds to repurchase the equipment from the parties I sold it to, even if I could get them to agree to return it.

The party I purchased this equipment from never told me that they did not have clear ownership and title to the equipment. Perhaps I should have scrutinized it a bit more at the time, but hindsight is 20/20.

My question is, what is my legal liability in this case, since I unknowingly purchased and resold the equipment, and the party I purchased it from appears never to have paid for it.

Thanks in advance for your advice.....

Cory

 

[Some Random Guy]

Based on your post, you did not purchase stolen goods. You purchased goods that the Canadian company bought on credit from the vendor. The Canadian company then defaulted on that credit agreement. The vendor can try to get police involved, but it is likely a civil and not criminal matter.

The matter really hinges on Canadian law as to their rights to demand the product back. US states generally have laws that describe the rights of sellers to have a security interest in goods sold on credit based upon the Uniform Commercial Code. In many cases, those laws will have clauses protecting parties like yourself that bought the goods in an arms length transaction at a fair market price.

Have a laywer write them a letter asking them to clarify under what Canadian law they expect that your company is liable for the other company's debts.