Chapter 47: Personal Property and Bailment

What are the ways you can acquire personal property?

1. Possession or capture 2. Purchase 3. Production 4. Accession -Gift -Will or inheritance -Confusion -Divorce

*What are three types of special bailments?

1. Warehouse company 2. Common carrier 3. Innkeeper

*Possession or capture

Acquire ownership by taking possession and having item under the dominion and control of another (e.g. wild animals). -Acquiring ownership of unowned property in its natural state. -Important when country was being developed. -Rare in today's society. -constructive possession: shot deer -Actual possession: bag deer ~constructive possession wins ~~manucaption

Natural accession

Belongs to the owner (e.g. litter of dogs).

*Personal property

Everything that is not real property. Anything tangible (physically defined) and intangible (rights that cannot be reduced to a physical form). E.g., book, car, stock certificate.

*What happens to lost property?

Finder of the property obtains title against the whole world except for the true owner. The lost property must be returned to its rightful owner, whether the finder discovers the loser's identity or the loser finds the finder.

Can you possess or capture domesticated animals?

No you cannot.

Accession

Occurs when the value of personal property increases because it is added to or improved by natural or manufactured means.

*Common carrier

Offer transportation services to the public (airlines, railroads, and trucking firms).

*Bailor

Owner of property in bailment.

*Estray statute

Statute permitting a finder of mislaid or lost property to take title to property if: 1. Reported to appropriate government agency. 2. Advertised property found. 3. Time elapses for true owner to claim it. Finder would be able to keep property after they go through the necessary steps. -Finder of mislaid or lost property obtains clear title to the property if: ~Finder reports find to an appropriate government agency. ~Finder or government advertises the lost property ~Owner does not claim the property within a stated time period (e.g., one year).

*Ziva Jewelry

-no bailment created ~bailee has to know about the property ex: if checked coat and had a fancy watch ~if check coat, it is only for the coat ~~they do not know about watch

*FedEx case

-not liab ~1st can't ship the coins ~2nd proper packaging FedEx -> contract carrier not common carrier

What are the three types of ordinary bailments?

1. Bailment for the sole benefit of the bailor 2. Bailment for the mutual benefit of the bailor and bailee 3. Bailment for the sole benefit of the bailee

*When are causa mortis gifts irrevocable?

1. Donor makes a gift in anticipation of approaching death from some existing sickness or peril. 2. Donor dies from such sickness or peril without having revoked the gift.

*What are the three elements necessary to be a valid gift?

1. Intent - the donor must have intended to make a gift. 2. Delivery of the gift - physical or constructive delivery. 3. Acceptance - courts presume acceptance unless there is proof that the gift was refused. A person cannot be forced to accept an unwanted gift.

*What are the three elements necessary to create a bailment?

1. Must be personal property - can be tangible or intangible. 2. Delivery of possession - bailee must have exclusive control over the personal property, and bailee must knowingly accept the personal property. 3. Bailment agreement - the creation of a bailment does not require any formality; can be express or implied. If it's for more than one year, then it must be in writing.

*Warehouse company

A bailee engaged in storing property for compensation.

Bailment for the mutual benefit of the bailor and bailee

A bailment for the mutual benefit of both the bailor and bailee. This is the most common type of bailment. It involves some sort of compensation for storing items or holding property while it is being served. Bailee owes a duty of reasonable care to protect the bailed goods. Bailee is liable for any goods that are lost, damaged, or destroyed because of negligence.

*Duty of strict liability of a innkeeper

A common law rule that makes innkeepers strictly liable to guests for personal property that is lost or stolen from the innkeeper's premises even if the loss was not the innkeeper's fault.

Bailment for the sole benefit of the bailee

A gratuitous bailment that benefits only the bailee. Occurs when one person lends an item to another for the benefit of the bailee. Bailee owes a duty of utmost care to protect the bailed property. Bailee owes a duty not to be slightly negligent in caring for the bailed goods.

Bailment for the sole benefit of the bailor

A gratuitous bailment that benefits only the bailor (without consideration). The bailee owes a slight duty of care to protect the bailed property. Bailee owes a duty not to be grossly negligent in caring for the bailed goods.

*Bill of sale

A legal document evidencing transfer or title to personal property.

*Bailment

A transaction in which an owner transfers his or her personal property to be held, stored, or delivered, or for some other purposes. Title to the property does not transfer. -Owner of personal property (bailor) transfers the property to another (bailee) to be held, stored, delivered, or for some other purpose. ~E.g., warehouse or trucking company holds property. -Title to property not transferred. -Bailee must follow bailor's directions concerning the property. -you give property to hold for benifit ex: bycycle into Lee's to fix ~Lees needs to exercise ordinary reasonable care

*Gift

A voluntary transfer of title to property without consideration by the donee.

*What are the exceptions to the duty of strict liability of a common carrier?

Act of God, act of public enemy (terrorist), order of a public authority (government), act of shipper (bad packaging), or inherent nature of the goods (perishable).

*Tangible property

All real property and physically defined personal property, such as buildings, goods, animals, and minerals. E.g., buildings, goods, animals, and minerals

What is considered a domesticated animal?

An animal that depends on humans for basic sustenance. Something that goes home at night. Farm animals are considered domesticated animals.

*What happens with abandoned property?

Anyone who finds abandoned property acquires title against the whole world, even against the true owner.

*Bill of lading

Document of title issued by a carrier-bailee to the bailor when goods are received for transportation. Carrier has a lien on the goods in possession if the bailor fails to compensate bailee for services.

Warehouse receipt

Document of title issued by a company that is engaged in the business of storing goods for hire that states that the bailor has title to the goods. It will describe the bailed property and terms of the bailment; date, description/packages, location, etc. A warehouse company has a lien on the goods in its possession if warehouse is not compensated for storing and handling the goods they can sell them through public or private to pay for it.

*Duty of reasonable care of a warehouse company

Duty owed by a warehouse company not to be ordinarily negligent in caring for the bailed goods. They are liable for loss or damage to the bailed property caused by their own negligence but not of someone else's. Warehousers can limit the dollar amount of their liability if they offer the bailor the opportunity to increase the liability limit for the payment of an additional charge (premium for more insurance).

*Causa mortis gift

Gifts made in contemplation of death. Can be revoked up until the time of death. It also can be revoked if the donor does not die from the impending sickness or peril. This takes precedence over prior conflicting will.

*Inter vivos gift

Gifts made while the donor is alive. Becomes and irrevocable transfer of ownership (once 3 elements are met).

*Bailee

Holder of the goods who is not a seller or buyer.

Mistaken improvement

If improvement is mistakenly made by an improver and it cannot be removed from the original article, the owner owns the title to the improved property and does not have to pay for it. If the improvement can be easily separated, the improver must remove and pay for damages caused by such removal. E.g., when addition to house is made larger than planned.

*Duty of strict liability of a common carrier

If the goods are lost, damaged, destroyed, or stolen, the common carrier is liable even if it was not at fault. They can limit their liability to a state dollar amount by expressly stating that in the bailment agreement. They must offer the shipper (bailor) the opportunity to pay a premium for greater protection.

*Real property

Includes land and property that is permanently attached to it. E.g., buildings, fixtures, trees, soil, minerals, timber, and plants.

*Innkeepers' statutes

Innkeepers can avoid strict liability by placing safes in the rooms and making guests aware of this safe. They can also limit the liability to a dollar amount if notice is given to guests (i.e. put a notice on the door). -Most states have enacted Innkeepers' Statutes to limit liability of innkeepers if safe is provided and guests are aware of safe. ~May also limit dollar amount of liability. -ex: if check rollex in safe -> bailment ~limits liab if stolen ~~ex: may be a certain amt He suggests we insure our expensive things

*Donor

Person making the gift.

*Donee

Person receiving the gift.

*Abandoned property

Property that an owner has discarded with the intent to relinquish his or her rights in it or mislaid or lost property that the owner has given up any further attempts to locate.

*Mislaid property

Property that an owner voluntarily places somewhere and then inadvertently forgets it (e.g. leave your wallet on the check out counter).

*Production

Property that is created by producing an object from raw materials.

*Lost property

Property that the owner leaves somewhere due to negligence, carelessness, or inadvertence (e.g. wallet falls out of pocket on the ground).

*Intangible property

Rights that cannot be reduced to physical form E.g., stock certificates, certificates of deposit, bonds, and copyrights.

Wrongful improvement

The owner acquires title to the improved property and does not have to pay the improver for the value of the improvements. E.g., when thief steals car and puts new engine in it.

Innkeeper

The owner of a facility that provides lodging to the public for compensation (e.g. hotel, motel).

*What happens to the mislaid property?

The owner of the property is entitled to its return. The owner of the premises (where the personal property is mislaid) becomes an involuntary bailee of the property. This owner owes a duty to take reasonable care of the property until it is reclaimed by the owner. -Owner of the premises where the personal property is mislaid entitled to take possession of the property against all except the rightful owner. ~Claim is superior to rights of finder. ~Must take reasonable care of property until it is reclaimed by owner. -finder does not have ownership -owner of property has ownership: legally right over everyone except the true owner

*Purchase

This is the most common method of acquiring ownership. -Purchasing the property from its rightful owner.