Question
Rothschild, Inc., a fine art gallery, stored artwork at a warehouse owned and managed by Christie's in Red Hook, Brooklyn, a low-lying coastal area known
Rothschild, Inc., a fine art gallery, stored artwork at a warehouse owned and managed by Christie's in Red Hook, Brooklyn, a low-lying coastal area known to have a high risk of flooding. Prior to Hurricane Sandy, Christie's notified Rothschild in an email that "extra precautions" were being taken for Rothschild's property. Specifically, Christie's said, "all property on the first floor" where Rothschild's artwork was stored would be "checked to ensure all items are raised off the floor," or if necessary, the goods would be removed to empty rooms on the upper floors of the storage facility. During Hurricane Irene in 2011, the Christie's facility flooded but Christie's had taken measures to protect Rothschild's items. But when Hurricane Sandy hit in 2012, the facility flooded and Rothschild's goods were damaged, apparently because they were left on the first floor. Rothschild alleges Christie's acted negligently in the caring, storing and handling of the artwork and breached the storage agreement by failing to relocate the artwork to a higher floor in anticipation of Hurricane Sandy. Christie's moved to dismiss based on the storage agreement and a loss damage liability waiver signed by Rothschild. That waiver provided that Rothschild was responsible for arranging insurance coverage for the artwork. The waiver also absolved Christie's of all responsibility for damage to Rothschild's goods and required a waiver of subrogation against Christie's for any damage to the artwork. How will the Court analyze this case?
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