Warehousing Law and Liability: Statutes, Industry Standards, Duty of Care, Documentation, Insurance, Damages

Description

Third-party warehousing has become an increasingly critical link in the supply chain and the demand for more space is growing. Stored goods can get damaged, destroyed, or stolen, but they also can become contaminated, spoiled, or adulterated in any number of ways. When these things happen, depositors may seek to hold warehousers liable in tort, contract, bailment, warranty, or statute.

A warehouser's standard of care can be affected by statute, the warehouse receipt, and any other contracts governing the relationship with its customer or its insurer. Ascertaining liability requires understanding both the law of the jurisdiction where the goods have been stored and industry custom. The parties are free to negotiate varying standards of care and liability limits.

The existence of one or more secured lenders can further complicate matters, and both the warehouser and the customer should pay careful attention to the creation and enforcement of warehouse liens.

Listen as this experienced panel of attorneys discusses warehousing law and liability from the perspectives of warehousers, customers, and lenders.