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CONFIDENTIAL

Feb. 25, 2010

Contracts
Breach of Contract
California Self-Service Storage Facility Act

Confidential

Bench Decision –  Defense

Attorneys

Plaintiff

Eric N. Chung

M. Stephen Cho


Defendant

Scott D. Buchholz
(Dummit, Buchholz & Trapp)


Facts

On or about Dec. 24, 2004, plaintiff and defendant entered into a written agreement for the rental of a self-storage unit (10'x30') owned by defendant located in Upland. On or about Feb. 7, 2005, an alleged burglary occurred at plaintiff's storage unit resulting in the loss of personal property stored in the unit.

The plaintiff maintained the defendant represented to him that he would not have to pay rent for the storage unit while defendant investigated the burglary. The plaintiff also maintained that any rent owed would be offset by the loss that the plaintiff suffered due to the burglary. Based on this alleged oral agreement, the plaintiff withheld further payments to the defendant. Within three months of the burglary, the plaintiff's personal items were sold at auction based upon plaintiff's failure to pay rent on the unit.

Contentions

PLAINTIFF'S CONTENTIONS:
The plaintiff contended that an oral agreement existed with defendant regarding rent abatement. He further contended that he did not receive written notice of the pending sale or that a lien existed on his property pursuant to the California Self-Service Storage Facility Act (Act) (Business & Professions Code Sections 21700 et. seq.). The plaintiff further maintained that he prepared and served a Declaration in Opposition to Lien Sale in advance of the auction sale which should have prevented the sale of his property under the Act.

DEFENDANT'S CONTENTIONS:
The defendant maintained that it had acted appropriately with the terms of the rental agreement and the Act, thereby justifying the sale of plaintiff's personal items. Further, the defendant disputed that any oral agreement and/or modification occurred as alleged by the plaintiff. In addition, the defendant cited to limitation of liability provisions in the rental agreement, which have long been recognized as valid contractual provisions. The provisions included a release of liability, limitation in the amount regarding loss or damage as well as self-insurance provision. The defendant also disputed the value of the items stored in the unit as well as plaintiff's claim regarding punitive damages.

Damages

Economic damages in lost personal property in excess of $1,118,547 as well as general damages due to this loss. The plaintiff claimed that he stored valuable music video equipment, including record/CD collection, mechanical tools including but not limited to drilling machines, table saw, routing tables, as well as sets of hand tools and numerous other personal mementos.

Result

Judgment for the defendant.

Other Information

FILING DATE: Jan. 28, 2008.


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