Legal Question in Civil Litigation in New Jersey

Check what your purchase agreement was when you submitted the tape. They probably had something on the invoice, or had you check something on the website. It probably disclaims or limits liability. That doesn't mean you don't have a case, but it can make it more difficult. You'd have to prove they were negligent and their negligence caused the damage to the tape. Depending on the nature of the damage that might be easy or difficult, with a tape like anything else.

You'd also have to put a dollar value on memories to recover damages for them. Courts are reluctant to put a dollar amount on sentimental value. They'd be more likely to limit your damages to the market value of the tape. Frankly, you're lucky the company made such a generous offer, even though it's a depressing situation.