QUESTION

Company Liability

Asked on May 22nd, 2021 on Civil Litigation - Maryland
More details to this question:
I rented a storage unit over a year ago. Unbeknownst to me, the manager of the location was supposed to cut a key for the storage unit next to mine. Instead she cut a key for our unit, this resulted in the key to our unit being changed without our knowing. My family and I were supposed to move from MD to CA on the 20th. When the movers arrived to load up our storage unit we couldn’t get into it because the key we had didn’t work obviously as the lock had been accidentally changed by the manager. Because of this, we had to postpone our move. The moving company increased our moving price by almost $8K. We had to hire different movers, who can’t come for at least another week. Our car was being shipped as well, so it now will arrive a week before us. We have a rental for the cross country drive that is going to cost at least another $3K to keep for additional week(s). We threw out all our food, the list goes on. Are they liable for the thousands of dollars this oversight is causing us?
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1 ANSWER

Appellate Practice Attorney serving New York, NY
Probably not.  First, if you look at your contract, you will probably find a limitation of liability provision, something along hte lines of the maximum liaiblity to which the storage facility can be subject is a refund of your storage fee.  These clauses are generally enforceable (at least in NY, it might be different in Maryland) absent gross negligence or recklessness.  I don't thinik that cutting the wrong key rises to the level of gross negligence or recklessness, but that is debatable. Also, the general rule is that parties who breach a contract are not liabile for consequential damages unless thery had reason to know that their breach would likely lead to those consequences.  The damages your describiing - additional costs incurred not directly from the breach (like the cost of a new lock, for example) but arising out of the particular circumstances of your case, are consequential and in my opinion (again arguable) are not reasonably foreseeable.   Bottom line is that i don't think you'd succeed in holding the storage facility liable for all of your damages (especially if there is a limitation of liability provision in your contract), but it might be a shot worth taking; at the least, they might offer something to settle and avoid the costs of litigation and the bad publicity.
Answered on May 22nd, 2021 at 5:11 PM

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