Full question:
I own a computer repair store near an Indiana college campus. When a notebook computer problem involves a motherboard, the fix costs more than the computer is worth. And, many times the students don't pick up their worthless computer so they don't have to pay our diagnosis fee. We are stuck with dozens of junk computers that will never be picked up. What can we legally do with them?
- Category: Abandoned Property
- Date:
- State: Indiana
Answer:
When you hold property for someone else without payment, a legal agreement called a bailment is created. In a gratuitous bailment, where you aren't compensated, you must still take reasonable care of the property. There are different types of bailments:
- Bailments for hire: You are paid for holding the property.
- Constructive bailment: Circumstances create an obligation to protect the goods.
- Gratuitous bailment: No payment is involved, but you are still responsible for the property.
In a gratuitous bailment, you owe a lower standard of care and can be held liable only for gross negligence. To establish a bailment, you must have actual control and intent to possess the property. If a court determines that liability would be unfair, it may find that you did not have the required control or intent.
According to Indiana law (IC 32-33-9-1), if a customer does not pick up their computer after you complete repairs and pay your fees, you may sell the computer after sixty days. You must notify the owner by mailing a certified letter at least thirty days before the sale, informing them of the amount due and the sale's time and place (IC 32-33-9-2). The proceeds from the sale should first cover your charges, and if the owner is not identifiable, the remaining funds must be deposited with the county treasurer (IC 32-33-9-3).
Additionally, you must issue a receipt stating that unclaimed items may be sold for charges (IC 32-33-9-8). This ensures that you are protected under the law when selling unclaimed computers.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.