Illinois Compiled Statutes
810 ILCS 5/7-204 (2026)
Duty of care; contractual limitation of warehouse's liability
✓ current as of May 2026
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(810 ILCS 5/7-204)
(from Ch. 26, par. 7-204)
Sec. 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 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. (d) (Blank).
(Source: P.A. 95-895, eff. 1-1-09.)
Notes of Decisions
Cited in 2
cases (1 in the last 5 years), 2014–2024 · leading case: Armagan v. Pesha, 2014 IL App (1st) 121840 (Ill. App. Ct. 2014).
Armagan v. Pesha, 2014 IL App (1st) 121840 (Ill. App. Ct. 2014). “(West 2008)), violation of section 7-204(a) of the Illinois Uniform Commercial Code (UCC) (810 ILCS 5/7-204(a) (West 2008)), common law fraud, consumer fraud, unjust enrichment and constructive trust.”
Thyssenkrupp Materials NA, Inc. v. Pegasus Denizcilik A.S. (N.D. Ill. 2024). “Because NASCO has limited its relationship as a stevedore and not a bailee or warehouseman, 810 ILCS 5/7-204 does not apply to NASCO.”
— 810 ILCS 5/7-204(a) — 1 case
Armagan v. Pesha, 2014 IL App (1st) 121840 (Ill. App. Ct. 2014). “(West 2008)), violation of section 7-204(a) of the Illinois Uniform Commercial Code (UCC) (810 ILCS 5/7-204(a) (West 2008)), common law fraud, consumer fraud, unjust enrichment and constructive trust.”
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