Security: Promising it to Your Tenants is Risky
By Christopher A. LaVoy, Esq.
Tiffany & Bosco, P.C.
Every so often I peruse Westlaw (an electronic legal database) for new cases relating to the mini-storage industry to see if there is anything of interest for AZSA’s membership. Often what I find offers nothing new—usually just more wrongful foreclosure suits and an occasional slip-and-fall at a facility. But this time I found something different and interesting. It was a successful suit against a facility for not keeping its promise about providing video camera security.
Ken and Barbara Engel walked into Jefferson Storage in Louisiana and immediately saw a prominent sign stating: “SMILE YOU ARE BEING VIDEO TAPED.” Out of several storage facilities, Mr. Engel said he selected Jefferson Storage in part because he was “looking for security.” The Engels signed a lease and moved into the unit.
About a month later the Engels discovered their unit had been burglarized. They asked for a copy of the videotape to aid the police. Management then informed the Engels that notwithstanding the sign, no video surveillance system was actually in place. Management said that cameras had been ordered, but had yet to be delivered and installed.
The Engels then sued the Jefferson Storage for not having the promised video surveillance system. The court initially noted the facility would normally not be liable for the stolen property because of the provision in the mini-storage lease (which most such leases have) stating that “Lessor shall not be liable for . . . property damage or loss from theft.” However, the courted noted this situation was different because the facility had specifically promised such security.
The Court stated: “Jefferson Storage falsely and publicly claimed, not only to passerby but also to potential lessees of storage spaces, that surveillance tapes were installed and active.” The Court then found that Jefferson Storage was liable for the damages associated with the theft because it had promised but failed to deliver on the video surveillance system. Thus, although it normally would have been immune from such liability based on its mini-storage lease, Jefferson Storage nevertheless became liable because of an advertising promise it made regarding security.
The lesson here is to watch what you say regarding security because it may come back to bite you in the wallet. Do not put alarm or surveillance warnings in windows or elsewhere in the hope of scaring away thieves if no such precautions are in place because they can be construed as promises to customers. If a prospective customer asks you about thefts at the facility, be honest about if any have occurred there. In short, make sure you do not overstate the security situation at the facility.
[This article deals with a law related subject at a general level and is not intended for you to rely on. You should consult a lawyer before making a final decision in a situation involving any legal issues.]
Christopher A. LaVoy is partner in the law firm, Tiffany & Bosco, P.C., and serves as AZSA’s legal counsel.
Source: Behind Closed Doors, AZSA Newsletter Archives