Tennessee Code Annotated
Tenn. Code Ann. § 47-7-204 (2026)
Duty of care - Contractual limitation of warehouse's liability
✓ current as of May 2026
- (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.
Acts 2008, ch. 814, § 1.
Notes of Decisions
Cited in 2
cases, 1980–1985 · leading case: Skripak v. Comm'r, 84 T.C. 285 (1985).
Skripak v. Comm'r, 84 T.C. 285 (1985). “Had the books been lost or destroyed, petitioners may have had a breach of contract claim against RPI for its apparent failure to fully ensure the books. Because RPI itself was recently incorporated by Joiner, its sole shareholder, and because RPI's bottom-line profits in the…”
Tennessee Com. Warehouse, Inc. v. Woods, 603 S.W.2d 130 (Tenn. 1980). “T.C.A. § 47-7-204(1) provides that a warehouseman is liable for damages for loss of or injury to goods “caused by his failure to exercise such care in regard to them as a reasonably careful man would exercise under like circumstances but unless otherwise agreed he is not liable…”
— Tenn. Code Ann. § 47-7-204(1) — 1 case
Tennessee Com. Warehouse, Inc. v. Woods, 603 S.W.2d 130 (Tenn. 1980). “T.C.A. § 47-7-204(1) provides that a warehouseman is liable for damages for loss of or injury to goods “caused by his failure to exercise such care in regard to them as a reasonably careful man would exercise under like circumstances but unless otherwise agreed he is not liable…”
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