Deposit disputes

The depositary must keep the work with the care of a professional, return it at the owner's request and inform the owner of any incident. The depositary answers for its fault, but may be exonerated in the event of force majeure or fault of the depositor. Conservation conditions (temperature, humidity, security) are assessed according to the standards of the profession.

The contract may limit liability to an amount or to certain risks, within the limits of the applicable law. Such clauses are strictly interpreted, particularly when challenged by a non-professional depositor.

The condition report on entry and exit is the essential evidence. It describes, with photographs, the state of the work at the time of deposit and of return. Without a report, it is hard to show that damage occurred during the deposit.

Owners have an interest in requiring an adversarial report, signed by both parties, and in keeping copies. Professional warehouses provide standardised reports.

Insurance is at the heart of deposit disputes. The contract must specify who insures the work, for what value and against what risks. Loans to museums are often covered by State guarantees or "nail-to-nail" insurance.

In the event of a claim, prompt notification to the insurer is essential. The tribunal examines the depositary's liability independently of the compensation paid by the insurer, which may turn against the depositary.

Lending works for an exhibition is a particular kind of deposit. It requires a loan agreement specifying conservation conditions, insurance, duration, photo credits and return. Disputes are frequent when the loan is extended or when the work is damaged.

Museums and foundations may use the TAO clause in their loan contracts, ensuring quick and discreet settlement in the event of a dispute.