Establishing when the contents of a unit can be legally removed and what can be done with them, without risking a claim over goods that have been sold or disposed of incorrectly, is a significant challenge that results in delayed action.
It's a choice between a rock and a hard place. Leave the unit occupied and lose potential rental income, or take action without being certain of the correct legal process and risk a claim that adds more costs?
Torts notice is a legal process that exists for dealing with belongings left behind, allowing a space to be reclaimed while outstanding fees are pursued separately.
How a Torts notice works
Under the Torts (Interference with Goods) Act 1977, a written notice can be issued requiring a customer to collect their belongings. This applies in England, Wales and Northern Ireland, provided the legal conditions are met.
The notice must explain what goods are being held, where they can be collected and any money already owed in respect of them.
If the belongings remain uncollected, a further notice can be issued stating the intention to sell them. Both notices can also be combined into one, provided it's sent by registered post or recorded delivery.
A customer must be given a reasonable amount of time to collect their belongings before any sale takes place. If storage fees were already outstanding before the notice was issued, at least three months must be allowed before the goods can be sold. The notice must make clear when the sale can take place and all other legal requirements must be met before proceeding.
We recommend keeping copies of notices and proof of posting, in case action is challenged.
What happens if goods remain uncollected?
Once the notice period has passed, the goods can be sold if the legal requirements have been met. Before arranging a sale, it's important to establish who owns the contents. Leased equipment or stock belonging to another business cannot automatically be treated as the customer's property.
If the goods have no resale value, disposing of them requires a different approach. A Torts notice doesn't automatically give permission to throw belongings away. Reviewing the storage legal agreement and seeking legal advice where the right to dispose of the contents is unclear can avoid further legal complications and costs.
A previous case involving a containers and storage company shows how a Torts notice can provide a way forward when a customer is unresponsive and goods remain in storage.
The customer had stopped paying and left five vehicles behind. With attempts to make contact unsuccessful, the client authorised further action and provided an updated statement of the outstanding balance, including the cost of the Torts notice.
A notice was issued through our solicitors, giving the customer 20 days to collect the vehicles. Despite receiving no response, the client was able to proceed once the notice expired, without needing the customer's cooperation to arrange the sale.
Four vehicles were sold for scrap, with the proceeds put towards the outstanding debt. The sale didn't cover the full balance but it allowed the client to recover some of what was owed through a legal process that also enabled the storage space to be reclaimed.
Accounting for outstanding storage fees
The proceeds from selling uncollected goods can be used to cover certain unpaid charges and the costs of arranging the sale.
Any money left over must be accounted for and returned to the customer.
If the sale doesn't cover the full amount owed, the remaining balance can still be pursued separately, provided the charges are recoverable under the storage agreement.
We recommend keeping a clear record of the outstanding balance and any money recovered through the sale. Alongside the storage agreement and previous correspondence, this provides useful supporting evidence if the remaining debt is referred for recovery.
