Mieske v. Bartell Drug Co.

Washington Supreme Court
undisclosed (1979)
ELI5:

Rule of Law:

For destroyed personal property that has no market value and cannot be reproduced, the measure of damages is its value to the owner, excluding sentimental value. A boilerplate clause limiting liability in a consumer bailment contract may be found unconscionable and unenforceable, particularly where there was no negotiation, and the consumer was not aware of the clause or any relevant trade usage.


Facts:

  • Over many years, the Mieskes created home movie films of significant family events, including their wedding, vacations, children's activities, and now-deceased relatives.
  • The Mieskes had accumulated 32 50-foot reels of this developed film.
  • Mrs. Mieske took the 32 reels to a Bartell Drug Co. store, where she had been a customer for over ten years, for the sole purpose of having them spliced onto four larger reels.
  • When dropping off the film, she told the store manager, "Don't lose these. They are my life."
  • The manager gave Mrs. Mieske a receipt containing the printed language: "We assume no responsibility beyond retail cost of film unless otherwise agreed to in writing."
  • There was no discussion regarding the liability limitation clause on the receipt, and Mrs. Mieske was not aware of its terms.
  • Bartell sent the film to GAF Corporation for the splicing service.
  • GAF Corporation lost the Mieskes' bag of film, which was likely thrown into a garbage dumpster and taken to a landfill.

Procedural Posture:

  • The Mieskes (plaintiffs) sued Bartell Drug Co., GAF Corporation, and a janitorial service company in a Washington state trial court.
  • Following a trial, a jury returned a verdict for the Mieskes, awarding $7,500 in damages against Bartell and GAF.
  • The jury found the janitorial service company not liable.
  • Bartell and GAF (defendants-appellants) appealed the jury's verdict to the Supreme Court of Washington.

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Issue:

Does a boilerplate exclusionary clause on a receipt, which limits liability to the retail cost of film, validly limit damages in a consumer bailment transaction where the lost property (developed home movies) has no market value and cannot be reproduced?


Opinions:

Majority - Brachtenbach, J.

No. A boilerplate exclusionary clause on a receipt does not validly limit damages under these circumstances because the clause is unconscionable. The proper measure of damages for destroyed personal property that has no market value and cannot be replaced is its value to the owner. Awarding the cost of blank film is not an adequate replacement for the lost images. Although the Uniform Commercial Code (UCC) applies to this bailment transaction, which is a 'transaction in goods,' the liability-limiting clause is unenforceable. The court rejected the defendants' arguments that 'course of dealing' or 'trade usage' validated the clause. No course of dealing existed as the clause was never discussed or read, and the trade usage among commercial processors does not apply to retail customers who are unaware of it. Applying the factors for unconscionability, including the lack of negotiation, the non-commercial setting, and the nature of the property, the court concluded the clause was unconscionable as a matter of law and therefore not binding on the Mieskes.



Analysis:

This decision is significant for extending the UCC's unconscionability doctrine, typically applied in sales contracts, to consumer bailment transactions for services. It establishes that for a 'trade usage' to be binding on a consumer, the consumer must know or have reason to know about it; industry practice alone is insufficient. The ruling strengthens consumer protection by preventing businesses from using inconspicuous, non-negotiated boilerplate clauses to evade liability for negligently destroying irreplaceable personal property.

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