Warehouse Operator Ordered to Pay $1.59 Million for Discarding Typhoon-Damaged Ginger

A wholesale merchant has been awarded 1.59 million yuan in compensation after a cold storage warehouse operator improperly disposed of over a thousand boxes of old ginger that were damaged by typhoon flooding. The incident occurred when Typhoon Kimi caused flooding at a warehouse in Baihe, Tainan, where the merchant, identified by the surname Lin, had stored 1,322 boxes of old ginger.

Lin accused the warehouse operator, surnamed Yang, of a passive attitude after the disaster. When Lin personally inspected the storage facility in November of the same year, he discovered that over a thousand boxes of ginger were missing. He subsequently filed a lawsuit seeking compensation for the cost of the ginger and a refund of storage fees, totaling 2.5 million yuan.

Yang, the warehouse operator, claimed that the cardboard boxes had become waterlogged and softened. He argued that Lin was not actively arranging for shipment, hoping for better prices, which led to the ginger spoiling over a prolonged period. Yang stated that after failing to reach Lin, he had workers dispose of the rotten ginger as garbage. He denied responsibility for compensation, asserting that no goods belonging to Lin remained in the warehouse.

However, the court found that Yang had discarded the ginger during post-disaster handling without properly documenting the damaged quantities. Crucially, he did not take photographic evidence or obtain Lin's consent before clearing out the goods. The court determined that Yang, as a paid custodian, had failed to exercise the duty of care expected of a good manager and was therefore liable for compensation.

The court decided that the compensation should be calculated based on the reasonable market price of the ginger at the time, rather than the original purchase cost. Statistics from the Council of Agriculture indicated that the wholesale price of old ginger in November of that year was 24.18 yuan per catty, leading to the calculated loss of 1.59 million yuan. The court did not grant Lin's request for a refund of storage fees, deeming the contract valid and the fees collected by the operator not to be unjust enrichment.