Doorage Suspends Operations Amidst Litigation

Doorage Inc., a valet-style self-storage operator that launched in 2017, has suspended its business operation during ongoing litigation with a competitor in the Chicago area. Doorage is no longer accepting new customers and has laid off about 90 percent of its workforce. After returning items to customers in Milwaukee; Columbus, Ohio; and Madison, Wis., the company is currently only serving clients of its Chicago storage center.

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,” Sandona said. “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.” 

Last year, U.S. Judge Rebecca Pallmeyer ruled in Doorage’s favor but declined to award the requested $2.1 million in damages, claiming that 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.