Contract Question - Client Liability for Vendor Gear

M

moonlitnite

Well-known member
Hi all,

Listening to a recent podcast, I realize that my contract for video services does not have a clause addressing damage or loss my gear, attributable by the client, guests, etc. While I haven't flushed out the wording, I was thinking of something along this line:

The Client shall be responsible for accidental and negligent acts of their party and agents that result in damages, loss and the like to equipment and gear owned or leased by <vendor>.

I would appreciate your thoughts and sharing any clips from your contract. For instance, looking at the above I see I've overlooked details as far as the time-frame for resolution as well as the process (upon validation of the damage or loss, the vendor shall bill the client, payable within x days, etc)

Warm Regards, Michael
 
Thanks Doug. In another forum, I had similar (but more overt) responses effectively saying "don't worry - be happy" that's what insurance is all about. True, sorta... here was my thoughts:

Yes, I already have marine inland (or film/video equipment) insurance. However, as we know there is a deductible and if you file a claim your rates will go up. But if you either don't forsee negligence on behalf of others attributable for loss and damages, or feel the deductible loss and rate increases are trivial, I support your strong assertions.

OTOH, I agree that it's not right to totally whack the client for the total loss due to an innocent act when we have insurance. Still, if your EX-3 is on a tripod, gets knocked over and breaks into pieces when teens are thrashing about at their bar mitzvah, it's not going to be pretty. Ditto if you're on film location and your Red gets thrashed by an inebriated client. On that note, I doubt your insurance will pay for a loaner until you buy a new one, and you are going to need to float the purchase price until you eventually get reimbursed. For the "what's me worry?" crowd, you're my heros!

But maybe I've just turned cranky in my old age...

Thanks, Michael
 
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Valid points, and like I said, you can do it this way if you like... but...

moonlitnite said:
Still, if your EX-3 is on a tripod, gets knocked over and breaks into pieces when teens are thrashing about at their bar mitzvah, it's not going to be pretty.
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No, but it'll be pretty obvious who's at fault. What you should be more concerned about here is what will happen when you are unable to complete the job as a result. In a situation like this you are talking about a live, non-repeatable event. I'd be more worried about being held accountable as a professional (not having a backup camera, for instance) than I would about the gear.

Ditto if you're on film location and your Red gets thrashed by an inebriated client.
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If I'm on a set that can afford to shoot on the Red, I most definitely have an AC whose job is to make sure no one gets near the camera unless they need to.

On that note, I doubt your insurance will pay for a loaner until you buy a new one, and you are going to need to float the purchase price until you eventually get reimbursed.
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True. But isn't the same thing true of your client? How many clients are going to pony up the cash right away? No, you'll be dealing with the same sorts of headaches and proving fault.

In the many dozens of projects big and small we have run for clients, we have charged some percentage overhead as an insurance fee. On only ONE of those shoots has anything ever actually been broken that was worth reporting to insurance. Yes, it cost us, but in the long run we are still ahead of the game.

All that said, if you can get a client to agree to that clause, why not? It only helps you. As for the payment terms and so forth, I would tie it to your existing terms concerning late payment, interest, and invoice periods.
 
It's a good idea to protect yourself with a clause of some sort in your contract. But it's a bad idea to try to word that clause yourself. Talk to a lawyer.
 
I'll second Chapelgrove ... if it's not in writing in a contract, it simply doesn't not exist. Talk to your lawyer for wording.
 
Chapel and Steve,

Sure, for specific legal issues with idiosyncrasies we definitely would talk to our lawyers. But for boiler plate stuff dealing with matters like this, I assumed others would be willing to share their T&Cs. I get the feeling others have also missed this important aspect.

And thanks Doug for sharing your approach - all sounds very reasonable for your business model.

Happy trails, Michael
 
moonlitnite said:
Chapel and Steve,

Sure, for specific legal issues with idiosyncrasies we definitely would talk to our lawyers. But for boiler plate stuff dealing with matters like this, I assumed others would be willing to share their T&Cs. I get the feeling others have also missed this important aspect.

And thanks Doug for sharing your approach - all sounds very reasonable for your business model.

Happy trails, Michael
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Problem is that such things are jurisdiction specific. What might protect you in New York could hang you out to dry in California. That's what lawyers are paid to know about. Even if folks share their contracts, they still need to be run by a lawyer to find if they'll apply in YOUR specific circumstances.
 
Steve House said:
Problem is that such things are jurisdiction specific. What might protect you in New York could hang you out to dry in California. That's what lawyers are paid to know about. Even if folks share their contracts, they still need to be run by a lawyer to find if they'll apply in YOUR specific circumstances.
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Really? That's incredible! Having worked in a contract organization for years across State jurisdictions, I've never seen variances dealing with topics like this. This is like saying common contract clauses like force majeure, entire agreement, severability, etc are all State specific.

Please cite an example that correlates to loss due to negligence so we can learn more...
 
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moonlitnite said:
Really? That's incredible! Having worked in a contract organization for years across State jurisdictions, I've never seen variances dealing with topics like this. This is like saying common contract clauses like force majeure, entire agreement, severability, etc are all State specific.

Please cite an example that correlates to loss due to negligence so we can learn more...
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FWIW I didn 't say "State" differences, I said "Jurisdiction." There is a difference. If you've never seen such variations perhaps you should consult your own attoney and ask him for references - I'm not getting into another p**sing match with you and your demands for legal citations beyond cautioning readers that your advocacy of do-it-yourself guerrilla law based on how you feel the legal world ought to work will eventually get someone who takes it at face value into serious trouble. I don't understand how you could oppose the common sense advice that what when your assets are on the line one should consult a subject matter expert rather than assuming something you find on the net applies to you. Your implication that do-it-yourself law based on advice and example found on the net is all one needs is irresponsible.
 
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My apologies, Steve. Your post cited New York versus California so I assumed you were talking about State jurisdictions. You also state:

"Your implication that do-it-yourself law based on advice and example found on the net is all one needs is irresponsible."

I'm not sure how I have that impression since my prior statement was that I've worked with contracts and legal departments for many years.

At any rate, let me apologize to everyone here that I've come across in an irresponsible manner - that certainly was not my intent. Fortunately, in another website forum my similar post was taken in a constructive, collaborative manner.

Warm Regards, Michael
 
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