What Do I Do With Property Never Picked Up By A Buyer at a Public Aucton?

Full question:

After my business went out of business we had a public auction. Several items were never picked up (left in my building and supposed to be out within 5 days per the auctioneer) we made repeated attempts to get the buyer to pick up his items. 6 months later they were told to get the items out by the end of october. Its now november. We also have a saved voice mail by the buyer that confirms the items needed to be out by the end of october. Can I legally sell, donate, throw out items. What obligation do I have to uphold the auctioneer's sale? He said they had five days to get it out. I have wanted to rent out the space but have been unable. If they come for 'their' items weeks from now what do I say to them etc.

• Category: Abandoned Property
• Date: 04/07/2025
• State: New York

Answer:

The answer depends on all the facts and documents involved, such as the terms of the contract of sale, and whether the state was involved in the sale. Typically when a person fails to pick up an newly sold item from the seller, the seller will send a notice stating that after a stated time period, the item will be deemed abandoned and subject to sale or other disposal. I suggest calling the local police department, as local areas have abandoned property laws that vary by local area.

When a person who is not a landlord agrees to hold property for another, a bailment is created. When the person holding the property, called the bailee, is not being compensated, it is called a gratutous bailment and the bailee must use reasonable care to protect the property.

There are different types of bailments- "bailments for hire" in which the custodian (bailee) is paid, "constructive bailment" when the circumstances create an obligation upon the custodian to protect the goods, and "gratuitous bailment" in which there is no payment, but the bailee is still responsible. There is a lower standard of care imposed upon the bailee in a gratuitous bailment, and the parties may contract to hold the bailee free from liability in any bailment. As the law of bailments establishes a lower standard of care for the bailee in a gratuitous bailment agreement, such an agreement or receipt should indicate explicitly that the bailee is acting without compensation. When a bailment is for the exclusive benefit of the bailee, the bailee owes a duty of extraordinary care. If the bailment is for the mutual benefit of the bailee and bailor, the bailee owes a duty of ordinary care. A gratuitous bailee must use only slight care and is liable only for gross negligence. To create a bailment, the alleged bailee must have actual physical control with the intent to possess. Physical control and intent to possess will be interpreted according to the expectations of the parties. If a court thinks that liability would be unexpected or unfair, it can usually find that the defendant did not have “physical control” or “intent to possess.” For example, courts are more likely to find a bailment of a car exists in a garage with an attendant than in a park and lock garage.

Please see the information at the following link:

http://law.justia.com/newyork/codes/abandoned-property/idx_abp0a14.html