How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask MShore Law Your Own Question
MShore Law
MShore Law, Attorney
Category: Business Law
Satisfied Customers: 25285
Experience:  Drafted Negotiated and/or Reviewed Thousands of Commercial Agreements
17924466
Type Your Business Law Question Here...
MShore Law is online now
A new question is answered every 9 seconds

I own a garage organization company. I have an agreement with

This answer was rated:

I own a garage organization company. I have an agreement with a storage company to provide a POD while we are doing the job. While we where doing a job I emailed them to pick up another POD in the same development, but the dispatch gave the driver the wrong address and They went to the wrong house an picked up a POD. The pod was full of normal garage items including a 1995 Honda Goldwing motocycle with 25K miles. The items in the POD fell everywhere while in transport. POD company stated it's their mistake. Now that its time to pay and because the condition of the motocycle and the type of paint the motocyle has - it's basically totaled. The POD company insurance said it's not covered under theri GL policy.. Now What?
Thank you for the post, I am happy to assist you by answering your questions. Despite the fact that the insurance company is unwilling to cover the claim, that does not relieve the storage company of liability for their error. Have you approached the company regarding payment?
Customer: replied 3 years ago.

Yes - they feel it too much, its a fake claim - their are a dozen scratches all over the bike. Its a 25th anniversary paint job. Bike retails for around 6500 to 8000. but its around 8000 to make whole. I have on fight in this battle other than it was a client of mine I feel is getting screwed. But I spent 2 hours at his home before the job and I can say 100% their was not one mark on it before they moved the POD

Do you have photos of the bike before they took possession of it? Also, approximately what is the value of the bike and other items damaged?
Customer: replied 3 years ago.

Value per owner is $9410 - damages (two estimates ) around $8000. No pictures before accident

Are you opposed to paying the customer the value of the items then suing the storage company for reimbursement? Also, please correct me if I misunderstand, but my understanding is that the customer did not select the storage company or sign any agreement with them for the removal of the items.
Customer: replied 3 years ago.

No the agreement is between me and storage company - I do not have that kind of money to pay and I did nothing to cause this damage - they went to wrong address. I have a copy of emails from them saying they will make right but when price came back at 8000 it went to their corporate office and they are saying its too high. There has been 2 estimates from Honda dealerships

I understand completely, the problem is that your customer did not select this storage company or enter into an agreement to relieve you of liability for their error. As such, the customer has a claim against you, and you in turn have a claim against the storage company. While true, you did nothing to cause the damage, because you selected this storage company whom in turn did cause the damage, you could be held liable should the customer sue you (in which case you would sue the storage company). Does this make sense?
Customer: replied 3 years ago.

yes and No - I understand If I ask them to pick this unit up - then it would be my mistake. But I did not say anything other than drop off a empty unit and I will notify you when it is ready to be picked up. ( They always drop off empty and pick back up empty when we are done). They went to wrong address and pick ed unit up 100% on there mistake. My GL insurance said I'm at no fault, and this should fall under their GL warehouse insurance since it was a dispatch error. Problem is they carrier GL on the trucks, but I can't find out if they have warehouse GL insurance.

The issue is that it is by virtue of your relationship with them that they are involved at all in the removal of this customer's items. Is your insurance willing to find out if they have warehouse general liability insurance? Also, again, whether they have insurance or not, they are still ultimately liable.
Customer: replied 3 years ago.

everyone understands they are liable - that's not the question. The question is how to get them to pay without a long and very costly suit. a suit would be a lot more than $8000.

This would actually be a small claims suit, and as such should not be nearly as costly as a regular suit. Further, while you can draft letters or have an attorney to do so threatening suit to compel them to pay, only a verdict against them would actually force them to pay. with that said, a well drafted demand letter from your attorney threatening suit may be all that is necessary, but if they ignore the demand letter, your only recourse would be a suit. To illustrate, if a client has a claim against you, and while you do not deny liability you simply do not want to pay, the client cannot come to your office and start taking money from your drawers or helping himself/herself to your equipment or property for the purpose of selling to the satisfy the debt owed. Does this make sense?
Customer: replied 3 years ago.

small claims court can handle a $8000 claim? I thought is was a $5000 limit

Is their corporate office in FL? Does your agreement with the storage company stipulate jurisdiction in FL?
Customer: replied 3 years ago.

no - they are a national comany - 1800-pack-rat - I've need spaeking with VP in north carolina.

ok, if filed in FL this claim would be filed in the trial county court, where claims not exceeding $15,000 are adjudicated. Similar to small claims, these courts are without much of the formality of a court dealing in matters of greater monetary value. To recap, while you can draft letters or have an attorney to do so threatening suit to compel them to pay, only a verdict against them would actually force them to pay. with that said, a well drafted demand letter from your attorney threatening suit may be all that is necessary, but if they ignore the demand letter, your only recourse would be a suit. To illustrate, if a client has a claim against you, and while you do not deny liability you simply do not want to pay, the client cannot come to your office and start taking money from your drawers or helping himself/herself to your equipment or property for the purpose of selling to the satisfy the debt owed. I want to make sure your questions are answered, if you have any follow up questions or if this does not answer your questions please let me know. If I have answered your questions please positively rate my answers.
Customer: replied 3 years ago.

So I should have a lawyer write a demand letter for damages. If no reply then I should sue them in court for damages - There is no way we lose, once I get a judgement - the judgement must be paid - do they pay for my legal expense too as part of damages?

Yes, and as part of your judgment you can request that they be ordered to pay your legal fees (this request is commonly granted when it is clear, as appears to be the case here, that the defendant has no viable defense and therefore wasted the court's time in requiring that the plaintiff file suit).
MShore Law and other Business Law Specialists are ready to help you

Related Business Law Questions