BAILMENT

BAILMENT- TRANSFER OF POSSESSION OF PERSONAL PROPERTY FROM ONE PERSON TO ANOTHER WITH THE UNDERSTANDING THAT IT IS TO BE RETURNED.

BAILOR- OWNER OF PROPERTY

BAILEE - PERSON USING OR HOLDING PROPERTY OF ANOTHER

ELEMENTS:

1. PERSONAL PROPERTY -tangible, moveable...

2. Delivery of possession - e.g. Keys to auto..

3. Acceptance of possession by bailee - knowledge is required

4. Bailment agreement - express or implied

BAILMENT AFFECTS LIABILITY- IF NO BAILMENT, NOT LIABLE

1. BAILMENT FOR SOLE BENEFIT OF BAILOR - bailee receives no benefit - employee takes computer to store for repair - no benefit to employee, then Care is “slight degree” of care - liable only for gross negligence.

2. BAILMENT FOR SOLE BENEFIT OF BAILEE- HIGHEST DEGREE OF CARE - MUST USE MORE CARE THAN THE ORDINARY REASONABLE PERSON STANDARD.

3. MUTUAL BENEFIT OR BAILMENT FOR HIRE - CAR RENTALS, CHECKROOMS, MUST USE ORDINARY CARE FOR SAFEGUARD OF PROPERTY.

IF MUTUAL BENEFIT - BAILOR MUST NOTIFY BAILEE OF ANY PROBLEMS - ALMOST STRICT LIABILITY IF BAILEE IS INJURED BY USE OF PROPERTY.

PROOF IN BAILMENT CASES:

1. DELIVERY OF BAILED PROPERTY TO BAILEE

2. ACCEPTANCE (FULL KNOWLEDGE) ON PART OF BAILEE

3. FAILURE TO RETURN THE PROPERTY

CREATES A PRESUMPTION THAT BAILEE WAS NEGLIGENT

BAILEE CAN REBUT OR OVERCOME THE PRESUMPTION BY PROOF THAT BAILEE WAS NOT NEGLIGENT.

CARS - HOTELS & RESTAURANTS MAY ASSUME GREAT LIABILITY

LIMITING STATUTES DO NOT APPLY TO CARS -

BECAUSE OF QUASI PUBLIC FUNCTION -CANNOT LIMIT LIABILITY DUE TO OWN NEGLIGENCE.

GENERALLY - requires DELIVERY OF KEYS to create Bailement - although not always required by all courts.

LIABILITY FOR ITEMS IN BAILED PROPERTY - MUST BE AWARE THAT THEY ARE PRESENT OR OTHERWISE NO LIABILITY BECAUSE NO ACCEPTANCE. BAILEE MUST HAVE OPPORTUNITY TO ACCEPT OR REJECT BAILMENT.

CHECKROOMS/COATROOMS- GENERAL RULE IS IF UNATTENDED, THEN NO BAILMENT.