Section 7-204 - Duty of care - Contractual limitation of warehouse's liability(a) A warehouse is liable for damages for loss of or injury to the goods caused by its failure to exercise care with regard to the goods as a reasonably careful person would exercise under similar circumstances. Unless otherwise agreed, the warehouse is not liable for damages that could not have been avoided by the exercise of that care.(b) Damages may be limited by a term in the warehouse receipt or storage agreement limiting the amount of liability in case of loss or damage beyond which the warehouse shall not be liable. Such a limitation is not effective with respect to the warehouse's liability for conversion to its own use. On request of the bailor in a record at the time of signing the storage agreement or within a reasonable time after receipt of the warehouse receipt, the warehouse's liability may be increased on part or all of the goods covered by the storage agreement or the warehouse receipt. In this event, increased rates may be charged based on an increased valuation of the goods.(c) Reasonable provisions as to the time and manner of presenting claims and commencing actions based on the bailment may be included in the warehouse receipt or storage agreement.Okla. Stat. tit. 12A, § 7-204
Laws 1961, p. 142, § 7-204; Amended by Laws 2005 , HB 2035, c. 140, § 9, eff. 1/1/2006.Oklahoma Code Comment
Prior Statutory Provisions:
2 O.S. §§ 9-62, 9-80.
Text and derivation of prior provisions, see Appendix at end of this title.
Comment:
Oklahoma did not enact Sub" section (4) as it was not applicable in this state.
(1) Substantially the same as former 2 O.S. § 9-62.
(2) Limitation of liability, except as to the declared value of the goods, is not permitted. Oklahoma has held an agreement which attempted to relieve a warehouseman from liability except for willful act or gross negligence to be void as against public policy. Inland Compress Co. v. Simmons, 59 Okl. 287, 159 P. 262 (1916). There are no previous Oklahoma statutes or cases, however, on "released value" clauses in warehouse receipts. They have been held valid in bills of lading, and there is no reason to assume that the Oklahoma courts would treat warehouse receipts differently. See discussion of Section 7-309 .
(3) There are no previous Oklahoma statutes or decisions. However, such a clause has been previously permitted in bills of lading. See discussion of Section 7-309 .