Code of Alabama

Ala. Code § 7-7-204 (2026)

Duty of Care; Contractual Limitation of Warehouse’s Liability.

✓ official Alabama Legislature (ALISON) text, current July 2026

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(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 that 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 is not 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.

(Prior version of this section added by Acts 1965, No. 549, p. 811; repealed by Act 2004-315, p. 464, §1; current section added by Act 2004-315, p. 464, §1.)

Notes of Decisions

Cited in 3 cases (1 in the last 5 years), 2003–2023 · leading case: Galactic Emp. Servs. v. Mcdorman, 880 So. 2d 434 (Ala. Civ. App. 2003).

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Galactic Emp. Servs. v. Mcdorman, 880 So. 2d 434 (Ala. Civ. App. 2003). “Section 7-7-204, Ala.Code 1975, provides for a negligence cause of action against a warehouseman, which the defendant corporation in that case was, pursuant to § 7-7-102(1)(h), Ala.”

Shaw Grp., Inc. v. Next Factors, Inc. (In Re Stone & Webster, Inc.), 335 B.R. 300 (Bankr. D. Del. 2005). “Metals case); Ala.Code § 7-7-204 (2005) *309 (same); Idaho Code Ann.”

Davis Constr. Co., LLC v. Merchants Transfer Co., Inc. (S.D. Ala. 2023). · cites it 3× “” Ala. Code § 7-7-204 (a). The complaint alleges that the defendant was acting as a warehouse and was negligent within the contemplation of Section 7-7-204(a).”

— Ala. Code § 7-7-204(a) — 1 case

Davis Constr. Co., LLC v. Merchants Transfer Co., Inc. (S.D. Ala. 2023). “” Ala. Code § 7-7-204 (a). The complaint alleges that the defendant was acting as a warehouse and was negligent within the contemplation of Section 7-7-204(a).”

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