Stoda Corporation operated a warehouse used by Singer to store 133 air-conditioner units. Upon storing the goods in the warehouse, officers and managers of Singer inspected the warehouse and observed that it had a network of sprinkler systems. A fire broke out at Stoda’s warehouse, the sprinkler system failed to activate, and the fire destroyed all of Singer’s goods.

Singer sued, claiming Stoda’s negligence in storing goods in a warehouse without adequate fire protection breached its bailment duties.

CASE QUESTIONS

1. Who prevails and why?

2. What is the standard that the bailee (Stoda) owes to the bailor (Singer)?