Getting Sued by Tenant

I received an interesting question from a member of AuctionsTX.com and I thought I wold share it with all of you.

Bambi asked:

Hello. I purchased the contents of a storage unit at a legal auction several years ago. The storage manager gave my name and address to the former owners, who have sued me. The former owners acknowledge that they did not pay their storage bills, and the facility acknowledges that they should not have given out my name. I thought that purchasers had full legal title and ownership rights for good purchased at a storage auction. Is this incorrect?

My response:

Bambi,

You should be able to get this case thrown out. Under Sec. 59.007 of the Texas Property Code, a good faith purchaser of property sold to satisfy a lien under this chapter takes the property free of a claim by a person against whom the lien was valid, regardless of whether the lessor has complied with this chapter.

In layman’s terms, you won’t be held responsible for a storage facility’s mistake. Hope you can breathe a little easier now.

Has anyone here been sued or been contacted by a tenant who threatened to sue you?

Do you know if your state has a provision like this which protects you?

Bambi asked:

"Bambi"? Surely you jest!

The storage manager gave my name and address to the former owners, who have sued me.

I'd say she has a major case against the storage facility for giving her name out.

"Bambi"? Surely you jest!

I'd say she has a major case against the storage facility for giving her name out.

Possibly. Although, she might have waived her right to sue the facility if she signed a disclaimer during registration. I'm really surprised the facility had records that old.

Signing a disclaimer does not insulate the facility in the event of a negligent act. What if instead of a lawsuit, that previous owner went to the home of Bambi which resulted in some sort of violent act. Not only would the facility be on the hook monetarily, that manager could face criminal charges as well, regardless of what was or was not signed.

Signing a disclaimer does not insulate the facility in the event of a negligent act. What if instead of a lawsuit, that previous owner went to the home of Bambi which resulted in some sort of violent act. Not only would the facility be on the hook monetarily, that manager could face criminal charges as well, regardless of what was or was not signed.

Good point.