storage company problem

[cabernet]

I would greatly appreciate any thoughts on this matter. I had been renting a storage unit through a company, paying promptly with my credit card for the past 4 months (I have all my detailed invoices verifying I paid everything as required).

At the end of May, this company went out of business. It turns out they were renting their warehouse space from another company, and have an outstanding balance with them.

This 2nd company is holding my stuff hostage, saying they have a lien on it based on the 1st company (whom I had been doing business with) owing them money, and my stuff may be auctioned to satisfy this companies debt.

This seems very unfair, and I am not sure if they are doing something illegal to me. They say the outstanding bill the company I was originally doing business with is several thousand (and my belongings are worth more than that), they suggested I could pay it and then pursue (sue) the original company I was renting through. It seems unbelievable that I am now owing on this other companies debts. I am very upset and not sure how to proceed, and the possible options I may have.

[rebel11]

Hi cabernet

 

Welcome to CAG

 

I don't think that is right, basically they are holding your 'goods' hostage, because a 'Third Party' hasn't paid them rent.

 

I'm fairly sure this legislation applies. Lets wait for other Caggers to respond. Don't speak to them over the phone, send letters Recorded.

 

http://www.legislation.gov.uk/ukpga/1977/32/contents

 

1 Definition of “wrongful interference with goods”

In this Act “ wrongful interference” , or “ wrongful interference with goods” , means—

(a) conversion of goods (also called trover),

(b) trespass to goods,

© negligence so far at it results in damage to goods or to an interest in goods.

(d) subject to section 2, any other tort so far as it results in damage to goods or to an interest in goods.

 

Why don't they sue the original company? 'they suggested I could pay it and then pursue (sue) the original company'

Please let us know how your problem has been resolved, it could help fellow Caggers.

 

Thread has been moved to the correct forum.

[cabernet]

This was all done at distance. Company 1 has no signed contract by me, we had initially spoken over the phone, I had visited their website, and basically we were doing business over the internet, and all my invoice from them were detailed and done through Paypal, and paid immediately with my credit card. They had collected my items from a couple different locations (detailed billing for those services also) and were storing them.

All my correspondence has been by email, this is what the 2nd storage company wrote me yesterday:

"(Company 1) currentlyowe us £5397.55 which includes 20% VAT."

Under our storage termsand conditions (we-Company 2) have the right to hold a lien of your goods until(Company 1) has settled in full their invoices. On receipt of his payment, thegoods are available to ship.

Under section 16 of ourStorage Terms and Conditions;

The company shall (onits own behalf and as agent for any assignee of its invoices) have a generaland particular lien on the Goods (and any associated documents or records) assecurity for payment of all sums (whether due or not) claimed by the companyfrom, or invoiced to, the customer or another interested party on any account(relating to the goods or not) or otherwise claimed in respect of the goods orother property of the interested party. Storage will be charge for any goodsdetained under lien.

I fully appreciate thatthis is a terrible situation to be in however with regret, the contract youhave is with (Company 1) and as a result you will need to takeproceedings up with him if he does not settle his contract and payment with(us-Company 2). It goes without saying that in the worst case scenario and they do not honour his payments, those goods would be sold at auction torecover the loss. My solicitor has also advised that I should give you theoption to pay the outstanding debt for the quick release of your goods and thenpursue (Company 1) thereafter.

[hmmh1978]

It goes without saying that you need legal advice as this is an area of common law which is prone to complications.

 

1.) You stated that you did not sign a contract however when doing business online, was there no contract hidden somewhere that you consented to by a tick box? If yes, you need to go through the T&Cs in detail.

 

2.) Did Company 1 (bailee) get consent or authorisation from you that it will be stored with Company 2 (sub-bailee)?

 

3.) Were you even aware of the sub-bailee's existence before you engaged the bailee's services?

 

If the answer to questions 2 and 3 are an emphatic "NO", then you are so far on good ground with regards to your rights.

 

A few points to raise:

 

1.) A bailee who keeps a chattel to enforce his lien on it cannot ordinarily charge for keeping it.

2.) A lien confers no power to sell the chattel. If they were to sell it, they would be liable under the Tort of Conversion.

3.) At common law, the bailee is not an agent of the bailor.

 

If the bailee went out of business due to debts, was there an administrator appointed to deal with the company's affairs until it was struck off?

 

Is the company not active according to Companies House?