I would HIGHLY RECOMMEND this session to ANYONE who has a contract for offsite storage of records and knows they are worth more that the $1 per box most commercial storage providers offer as "protection" for your information assets.
Over time, more and more records storage service providers are seeking protection under the Uniform Commercial Code, UCC Article 7, Section 210 as "commodities warehousemen" in the terms and conditions of their contracts. This is NOT a situation that you as customers are obliged to accept, but unless you are aware of the ramifications of the clause and fail to negotiate it out, you may be subject to it. Keep in mind, the typical definition of commodities are saleable goods and merchandise, NOT intellectual property and/or business records and information.
Neither of the firms mentioned below (First Union or Mobil) had purchased any additional coverage and had signed the standard contracts, but because of situation surrounding the fire and the facility, they were able to file claims for losses to cover the regeneration of the data lost in the records that were destroyed, and as Peter mentioned, the awards were in excess of $20MM per claimant.
ARMA International just announced the addition of the following session to the Boston conference. this is one session I don't want to miss. Why? Both First Union and Mobil Corp suffered catastrophic records losses due to a fire in 1997. As Larry Medina and Hugh Smith have pointed out in the past on the list records stored in a commercial facility are generally insured for $1 per box IIRC. BOTH companies sued for their losses and were awarded over $20MM each. Search the listserv archives for diversified and you will find links to the stories.
What to Do When You Experience a Loss of Records and How Do You Assess the Damages?
Richard E. Stabinski, Esq., Phelan, Pettit & Biedrzycki
Marc Zingarini, Esq.
The panel discussion will provide a checklist on what to do in the event that our records are destroyed or lost beginning with procedures to implement and ending with how to value the lost information. The panel will also give an overview of the law on damages relating to destroyed information, including specific examples of damages recovered recently in a Pennsylvania lawsuit involving the loss of records by First Union National Bank and Mobil Oil Corporation in the 1997 fire at Diversified. There will also be a discussion of how you can calculate the minimum value of the records you are currently storing.
1. Checklist on what to do if your records are destroyed
2. Overview of law of damages relating to recordsExamples of damages awarede to Mobil and First Union National Bank in recent Pennsylvania case
3. Calculation of minimum value of your records
see you there
Peter A. Kurilecz CRM, CA
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