I.C.C. Metals, Inc. v. Municipal Warehouse Comp

In I.C.C. Metals, Inc. v. Municipal Warehouse Comp., 50 N.Y.2d 657, 409 N.E.2d 849, 431 N.Y.S.2d 372 (1980), involving the failure of a warehouse to deliver goods stored with it and the inability of the warehouse to offer more than speculation as to the reason the goods were missing, the Court of Appeals held "that proof of delivery of the stored property to the warehouse and its failure to return that property upon proper demand suffices to establish a prima facie case of conversion . . ." and divests the warehouse of the benefit of the liability-limiting provisions of the storage agreement. Id. at 660. The Court in I.C.C. Metals placed the burden upon the warehouse to come forward with evidence sufficient to prove that its failure to return the property did not result from its conversion of that property to its own use and thus overcome the presumption of conversion.