Legal Question in Business Law in California

Re: Am I Responsible For Customers Stolen Property?

Of course you are responsible for the actual value. That is one of the risks a business takes.

Re: Am I Responsible For Customers Stolen Property?

Are you responsible? Yes.

Can she take you to court? Yes, and I suspect she would win.

This is what is called a bailment - where one party gives its property to another. The circumstances surrounding the bailment dictate the level of care which the bailee (the person receiving the property) owes to the bailor (the person delivering the property).

For example, when you give your car to the valet, a bailment is created. And in that situation, the valet must exercise reasonable care over your car. That's why you pay him.

When you neighbor asks you to borrow a lawnmower, and you give your lawnmower to him, a bailment is created.

In your situation, you were charging a fee to repair the computer. When she gave you her computer, a bailment was created. You were obligated to exercise reasonable care not to lose her property. The fact that it was stolen from you is not relevant. (After all, it's not her fault that it was stolen.) She is entitled to have her property back, or in the alternative, the reasonable value of her computer. She may argue that she is entitled to replacement value. But you two can fight over what measure of damages to use.

If all she wants is $400, then you might consider having her sign a release of liability in exchange for the money, and call yourself lucky.

By the way, renter's insurance likely would not cover this, as most renter's policies exclude losses arising out of business activity. You should obtain a simply commercial general liability policy. They are not that expensive and would like cover a loss such as this.

Good luck.

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Re: Am I Responsible For Customers Stolen Property?

Mr. Guerrini is right. The applicable law is found in the Civil Code, sections 1858 to 1858.3.

Basically, the law says that every repair business needs to give customers a receipt upon acceptance of property for repair, stating (if it be the case) that the goods deposited for repair are not insured. Failure to give your customer such a receipt makes you strictly liable for any loss by theft, fire or vandalism.

Strict liability means that you are liable for the actual cash value regardless of negligence, fault, or the absence thereof.

However, it doesn't appear that the customer is entitled to replacement value.