Legal Definitions - dead storage

Dead storage refers to the long-term placement of items in a designated storage facility, where they are not intended for immediate, regular, or active use. It implies that the stored goods are essentially dormant, awaiting a future retrieval or disposition, rather than being part of an ongoing operational cycle.

Here are some examples illustrating dead storage:

• Example 1: Seasonal Recreational Vehicle

  A family owns a large recreational vehicle (RV) that they use exclusively for summer vacations. From October through April, they rent a dedicated space at a commercial storage lot to keep the RV. During these months, the RV remains parked and unused, not being accessed or driven regularly.

  This illustrates dead storage because the RV is placed in a storage area for an extended duration (several months) and is not in active, regular use during that time. Its purpose is to be kept safe and preserved until the next season of active use.

• Example 2: Archival Business Records

  A large accounting firm has completed its annual audit cycle and needs to store thousands of boxes containing client financial records from previous years. While some records are digitized, regulatory requirements mandate keeping physical copies for seven years. The firm contracts with an off-site records management company to store these inactive paper files and several outdated computer servers in a secure, climate-controlled warehouse. These items are rarely accessed, perhaps only once or twice a year for specific compliance checks.

  This is an example of dead storage because the documents and equipment are stored for a prolonged period (seven years) and are not part of the firm's daily operations. They are kept for compliance and potential future reference, not for active, regular use.

• Example 3: Personal Belongings During Overseas Relocation

  An individual accepts a two-year international work assignment and decides to rent out their home fully furnished. Instead of selling their personal effects, they rent a large storage unit to keep their sentimental items, family heirlooms, and personal collections. These items will remain untouched and unused in the storage unit until the individual returns from their assignment.

  This scenario exemplifies dead storage because the individual's personal belongings are placed in a storage facility for an extended, predetermined period (two years) and are not being actively used or accessed during that time. They are simply being preserved until the owner can retrieve them.