Bailments

Delivery of Possession

- Actual Delivery -> bailor physically hands property to bailee - Constructive Delivery -> occurs when one gives keys to another, transfers control w/o actually delivering - Symbolic Delivery -> bailor gives bailee a thing symbolizing object of a bailment (written instrument)

Acceptance

- Constructive Acceptance -> when person comes into possession of object by mistake or possesses lost item

Hypos

- O loans his Apple Mac computer and his HP printer to friend Ned. Ned goes bankrupt, and the trustee in the bankruptcy takes possession of the computer and printer on behalf of Ned's creditors. Is O out of luck? No, b/c O is the true owner, Ned was just a bailee, and the creditors cannot reach O's property. - Checking a car with restaurant valet (complimentary) creates a bailment; clear control and possession, even though no payment for it - Restaurant not responsible for antiques and art in car trunk (could not have reasonably expected it); had they knowingly taken charge of it, would likely have had higher security and charged higher price - Checking a 200$ coat at hotel and claiming checker also liable for 2K mink stole in pocket won't fly; liable for coat b/c didn't knowingly enter bailment for stole and wasn't foreseeable - Hotel guest hands manager envelope with dull green/copper ring and asks to deliver to sis; takes it, but it is lost. Hotel only wants to pay costs of cheap copper ring, not valuable emerald, b/c didn't know it was the latter. No dice. Once you take control/possession, you are liable for its full value, even if you made a mistake in judgment - If father rents safety deposit box and stores some of daughter's jewelry there for her, bank is not liable for it if it gets lost. Only duty was to father, since bailment was b/w him and bank. Daughter is the one bringing the case.

Elements of a Bailment

1. Delivery by bailor to bailee - actual delivery or constructive (ex. Giving keys to car is constructive) 2. Acceptance by bailee - can be actual or involuntary duty to mistake or finding 3. Intent to possess by bailee - what specifically did bailee intend to possess? Ex. Car but not $2M painting in trunk 4. Redelivery by bailee - strict liability unless involuntary bailee, then negligence

Examples of Bailments

: person rents car, person parks car in commercial parking lot, leave clothes at the cleaners, borrowing a book

Standard of Care

Bailee must care for chattel as a reasonable person under the circumstances (bailee has absolute duty to return) - There exists a statutory presumption of negligence - When bailment is for sole benefit of bailee: bailee responsible for the slighest negligence. o EX: borrowed object, commercial bailees (transport companies/repair shops) - When bailment is for sole benefit of bailor: bailee only responsible for gross negligence o Gratuitous Bailment: person taking care of an object for friend/neighbor; or a finder

1. A gives keys & car to B's restaurant valet and gets a ticket. Car is gone

Bailment Created

2. Q checks coat at restaurant & it's lost.

Bailment Created

3. K leaves dingy-looking ring with hotel concierge that turns out to be worth $1million & it's lost.

Bailment Created

4. Dad puts daughter's jewelry in safe deposit box & bank loses. Reasonable expectation that person who rented box will store family's goods.

Bailment Created

Mistake as to Value

Mutual Assent, so bailment exists

1. A gives keys & car (with $1 million painting in truck) to restaurant valet & car is lost.

No Bailment for Painting

2. Q checks coat with wallet/mink stole in sleeve/pocket.

No Bailment for anything but Coat

Mistake as to Contents

No mutual assent, so no bailment

4. Farmer B gives 8,000 bushels of wheat to E for storage.

Not getting specific wheat back, just 8,000 bushels or value

3. Messenger leaves package Broker A when it should have gone to Broker B. A runs after messenger to return, but gives to wrong person.

Not voluntary acceptance, no dominion exercised, so no bailment by A.

Peet v. Roth Hotel

P gave Hotel a ring; hotel was unaware that the ring was very valuable - hotel still responsible b/c there was still mutual assent.

What is a bailment?

Transfer / delivery by an owner or prior possessor (bailor) of possession of personal property to other (bailee): o Whose purpose in holding possession is for safekeeping, repair, transportation, or other purpose more limited than dealing with the object/chattel as would its owner absolute duty to deliver item correctly o Where return of the object/chattel in same, or substantially same, undamaged condition is contemplated - Change of POSSESSION, not of TITLE - Result of an express or implied contract/agreement or conduct between the parties - Constructive Bailment: when possession of personal property is acquired/retained/accepted, in which bailee should keep it safely and return it to the owner (purse found in hotel; painting visible in back seat of valeted car) o Intentional delivery is not necessary, if received/accepted, constructive bailment arises - Situations where party attempts to attach obligations of bailee upon persons who deny assuming them

Misdelivery

bailee liable even if not at fault for the misdelivery (strictly liable), due to negligence standard o Mistakes, even innocent / good faith, are NEVER an excuse for liability

Allen v. Hyatt Regency

bailment created when car owner parked/locked car in indoor garage Expectation of protection - amounted to more than mere license or hiring of space to park vehicle. Parties create bailment through: 1) express contract OR 2) relationship / conduct / intention o License or lease is NOT a bailment

Cowen v. Pressprich

bond given to wrong person, implied bailment contract, did NOT exercise care

Park-and-Lock Cases

failure to redeliver raises presumption that bailee negligently handled chattel

Samples v. Geary

girl checks her coat, there's a fur piece wrapped in the inside. Coat check NOT responsible for the fur - no "meeting of the minds."

McGlynn v. Parking Authority of City of Newark

lot owner HAS duty of reasonable care b/c: 1) owner in best position to absorb/spread risk of damage; 2) car owner expects to receive car how he left it; 3) car owner's proof of negligence is almost impossible o In some cases, lot owner liable for the contents of the car as well (those that are visible/known) o Car is in the possession of the garage because garage has (a) possession (custody) and (b) control of the vehicle. o Pub Policy - a garage owner is better situated to protect a parked car and to distribute the cost of protection through parking fees.

Ampco Auto Parks v. Williams

parking garage NOT responsible for valuable contents in car trunk