Part 5- Property, Chapter 23: Personal Property and Bailments, Doc 5

In this section, the chapter explores the roles and liabilities of warehouse operators and carriers when dealing with documents of title, such as warehouse receipts and bills of lading, in the context of bailments and the transportation of goods. Here are the main concepts and cases discussed: Documents of Title: Warehouse Receipts and Bills of Lading 1. Warehouse Receipts: A warehouse receipt is a document issued by a warehouseman that confirms the receipt of goods for storage. It can be either negotiable or nonnegotiable: o Negotiable Receipts: Allow the goods to be delivered to the bearer or to the order of a named person, providing a way to transfer ownership or control. o Nonnegotiable Receipts: Do not permit the transfer of ownership by simply transferring the document. A valid warehouse receipt must include essential details like the warehouse location, issue date, receipt number, delivery instructions, storage charges, goods description, warehouseman’s signature, and any claimed lien for charges. 2. Warehouseman’s Liability: As bailees, warehouse operators are responsible for exercising reasonable care over stored goods. They may limit liability through conspicuous disclaimers but remain responsible for misdescriptions unless protected by certain notations, like “contents and condition unknown.” 3. Bills of Lading: Issued by carriers, these documents outline the obligation to transport and deliver goods. Similar to warehouse receipts, bills of lading can limit liability for nonreceipt or misdescription if labeled appropriately. Carriers also adhere to a high standard of care and can only avoid liability for damages if caused by specific uncontrollable factors, such as natural disasters or acts of public enemies. Case Study: Gyamfoah v. EG&G Dynatrend In Gyamfoah v. EG&G Dynatrend, Yaa Gyamfoah sued EG&G after her watches went missing from their warehouse, where they were stored under contract with the U.S. Customs. The court found EG&G liable based on the warehouseman's duty of care:   Prima Facie Case of Conversion: To prove conversion, Gyamfoah needed to demonstrate delivery of the goods, a demand for their return, and EG&G’s failure to return them. Burden of Proof Shift: Since EG&G could not account for the missing watches, they were presumed negligent under New Jersey law, which mandates a reasonable duty of care for warehousemen. International Shipping and Liability 1. Ground Carriers (U.S. and EU): Governed by laws like the Interstate Commerce Act (U.S.) and EU regulations, ground carriers must compensate for goods damaged in transit unless due to uncontrollable events. They may limit liability if the shipper agrees to pay for higher coverage. 2. Air Carriers: The Warsaw Convention limits air carrier liability but provides for compensation unless the loss was beyond the carrier’s control or due to shipper negligence. Liability can also increase if shippers declare higher values. 3. Water Carriers: Governed by the Hague–Visby Rules and the U.S. Carriage of Goods by Sea Act (COGSA), international water carriers have duties such as ensuring ship seaworthiness and properly stowing cargo. Liability is limited to $500 per package under COGSA unless a higher value is declared. Carriers are not liable for events beyond their control, such as piracy or war. o General Average Doctrine: This maritime principle requires all cargo owners to share in the loss if some cargo is sacrificed to save the rest during an emergency. A New Jason clause in contracts extends this to cover additional circumstances, requiring shared liability even when the carrier is not at fault. Summary The chapter emphasizes the importance of documents of title in securing and transferring rights over stored or shipped goods, the high duty of care owed by warehouse operators and carriers, and the specific liability limits and protections available in international transport law.