I.C.C. Metals v. Municipal Warehouse Company

At issue on this appeal is whether a warehouse which provides no adequate explanation for its failure to return stored property upon a proper demand is entitled to the benefit of a contractual limitation upon its liability. For the reasons discussed below, we conclude that proof of delivery of the stored property to the warehouse and its failure to return that property upon proper demand suffices to establish a prima facie case of conversion and thereby renders inapplicable the liability-limiting provision, unless the warehouse comes forward with evidence sufficient to prove that its failure to return the property is not the result of its conversion of that property to its own use. If the warehouse does proffer such evidence and is able to persuade the trier of facts of the truth of its explanation, then the limitation of liability will be given effect and the bailor will be required to prove the