Valet-Style Self-Storage Operator Doorage Suspends Operation During Litigation With Competitor

Valet-style self-storage operator Doorage Inc., which launched in 2017, is suspending its business operation during ongoing litigation with a Chicago-area competitor. The company is no longer accepting new customers and has laid off about 90% of its workforce. It’s currently only serving clients of its Chicago storage center, having returned items to customers in Milwaukee; Columbus, Ohio; and Madison, Wisconsin, according to self-storage industry blog “SpareFoot Storage Beat.”

In August 2019, Doorage issued cease-and-desist demand letters to competing valet-storage operator Blue Crates LLC after it released a marketing video very similar to one of its own. The company claimed the promo infringed on its copyright, using similar colors and themes, according to case details on Casetext.com. Doorage then filed a lawsuit against Blue Crates in 2020, seeking damages and lost profit.

In a statement posted on the Doorage website, company founder and CEO Sean Sandona said the lawsuit has been costly. As such, he had to decide between giving up the litigation or suspending operation.

“We have chosen to fight. This has led to a complete pause on operations until litigation is over. This action allows us to pool our investor resources, which provides our company the finances to take our case all the way to the end. When we prevail, we hope we can jump right back into serving our customers and fans,” Sandona said.

U.S. Judge Rebecca Pallmeyer ruled last year in Doorage’s favor but declined to award the requested $2.1 million in damages. She claimed Doorage’s damage assertions were based on personal knowledge and lacked factual support. She called for a hearing in which all parties will present evidence of the damages. A date has yet to be set.

Doorage is now seeking a summary judgment that would be enforceable through payment from proceeds of any applicable insurance coverage or policies of non-debtors, including Blue Crates' insurer Crum & Foster, Casetext.com reported.

Founded in 2018, Doorage uses an online platform that allows customers to schedule item pickup, maintain a visual catalog of stored belongings, and request delivery of belongings to their home.

Founded in 2015, Blue Crates offers door-to-door storage and moving services to customers in the Chicago area. It filed for bankruptcy in 2021 but remains operational.

Sources:
Casetext, Doorage Inc. v. Blue Crates LLC
Doorage, Website
SpareFoot Storage Beat, Valet Operator Downsizes Amid Legal Squabble With Competitor