A new legal precedent has been set for small businesses regarding the safeguarding of customers' coats which could save them substantial amounts.

The case dealt with a customer who left a coat in an unstaffed cloakroom in a small hotel that was taken by mistake and not returned.

The cloakroom had several visible signs to indicate that property was left at the owner's risk. However, when the coat was lost the customer took the case to the small claims court and won £100 plus expenses.

The Federation of Small Businesses (FSB) took on the case for the Upland Park Hotel, in Hampshire, to prevent a legal precedent making firms liable to incur substantial costs and the potential of fraudulent claims being pursued.

John Walker, FSB national policy chairman, said that the case had "wide-ranging implications".

"If personal property is left in a cloakroom it is at the risk of the customer not that of the business. Disclaimer signs at the establishment will continue to protect business owners. We are pleased that this point has been confirmed in the courts," he added.


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