and similar threads, and shows like “Storage Wars”.
In many jurisdictions of the US, if you fail to pay rent on a storage unit, they can or will sell your property inside.
What happens if someone stores SOMEONE ELSE’s property in their own storage unit, and then fails to pay? Once a storage auction has taken place, do they have any cause to get their property back or receive payment for it?
E.g.
Joe: “Hey Bill, what did you do with that refrigerator that I lent you last year? I want it back - my other one died.”
Bill: “Uhh, I actually ended up not needing it after I moved back in with my parents. I put it in a storage unit that I rented but I got behind on the bill and they sold everything inside.”
Joe: “!@#$%^ you idiot. That refrigerator was in excellent condition.”
At this point, what rights might Joe have? Can he track down whoever bought the contents of the unit and demand that the fridge be returned or paid for, or does he have a claim against Joe?
What if the property was outright stolen? E.g. J. R. Thief breaks in to someone’s home and takes jewelry, then puts the jewelry in a storage unit and then fails to pay the bill. By the time that the legitimate owners track the thief down, the storage auction has already taken place.
Mods: this is a request for legal information, not advice related to a specific case. I do not have this problem. Consult an attorney licensed in the applicable jurisdiction. This is not the baggage check mentioned in the Warsaw Convention. If you are still concerned, feel free to move this to IMHO.
The person storing the property for someone would be still be responsible for the loss. Allowing the storage unit fees to accumulate unpaid could be negligent. Depending on the circumstances.
In this case, I believe that Joe takes Bill to small claims court and hopefully the facts corroborate Joe’s story and the judge is convinced that Bill was negligent.
I don’t see how it could be the storage company’s responsibility or the person who purchased the contents of the unit once it was legally sold… but IANAL.
Typically, the rental agreement stipulates that the owner can enforce a lien on the property within if you default on your payment. Here’s one example online… I presume state laws on the matter vary.
As others have said, any claims by a property owner would be against the renter, not the storage company.
When Bill holds Joe’s property, a bailment is created. Bill, the bailee, takes possession of personal property owned by Joe, the bailor.
Different rules apply depending on whether the bailment is for the benefit of the baliee or the bailor. In the hypothetical described by the OP, it sounds like the bailment was for the benefit of Bill the bailee. We might imagine a situation in which Joe says, “Hey, Bill? I don’t have any space to store my fridge. Do you have room in your storage unit?” as being a baliment for the advantage of the bailor.
In this case, even assuming the bailment was for Joe’s benefit, the most forgiving standard would be that the bailee is required to avoid gross negligence. (Different states have different rules about what duty of care is owed by the bailor under different types of bailments). In my best guesstimate, allowing property to be sold for non-payment of storage fees without notice to the baliee would be gross neligence, and Joe would have a claim against Bill.
But would the “sale” of the refrigerator even be valid? “Nemo dat quod non habet” and the fact that Joe never granted permission for his refrigerator to be sold at auction for non-payment of rent. Let’s assume that Joe was not grossly negligent here (e.g. standing by while he knew that his refrigerator was in a storage unit that was about to be foreclosed upon and doing nothing, neither notifying Bill to return the fridge immediately, nor notifying the landlord of the storage unit that the unit contained the property of an innocent third party.
What if Bill had said “Hey Joe, come get your refrigerator or arrange to pay for the storage unit where it is stored.” Joe does nothing. Is Bill still liable?
IANAL
IMO, if Bill informed Joe that the fee for the unit is due, and that if not payed Joe will lose his stuff, and Joe doesn’t do anything, then Joe is SOL.
If one becomes delinquent in payment, the storage facility will usually lock you out of the unit until payment is made.
Would they release Joe’s property to him, seeing as how he was not the one that rented the unit? Could they be forced to give Joe his refrigerator if Bill acknowledges that it does indeed, belong to Joe?
I used to work at a storage facility (many years back in a non US country)
We didn’t have a specific policy on this sort of arrangement. My best guess is that if the ownership could have been “proven” (not sure how, but there you go) some arrangement would have been made.
