Part 5- Property, Chapter 23: Personal Property and Bailments, Doc 4

This section further explores the responsibilities of bailees in various types of bailments, with specific focus on liability standards for common carriers, hotelkeepers, and other special bailees. Here are the main points: Bailee’s Duties and Liability 1. Duty of Care: Bailees must exercise a level of care based on the bailment type: o For Bailor’s Benefit: Minimal care is expected; liable only for gross negligence. o Mutual Benefit: Ordinary or reasonable care is expected, such as that exercised by professional bailees (e.g., warehouses), who may be held to higher care standards. o For Bailee’s Benefit: High degree of care is required; the bailee is liable even for minor negligence. 2. Return of Property: The bailee must return the property in its original condition. If lost or damaged, a presumption of bailee negligence arises, but the bailee can rebut by proving due care. 3. Misdelivery: A bailee is liable if they deliver the property to an unauthorized party. In cases of competing claims, judicial resolution may be needed to determine rightful possession. 4. Limits on Liability: Bailees often try to limit liability (e.g., disclaimers in claim checks). Courts enforce disclaimers only if they were clearly communicated and are not against public policy. Special Bailments 1. Common Carriers: Common carriers (e.g., trucking companies) are nearabsolute insurers of transported goods and are liable for any damage or loss except for causes beyond their control (e.g., natural disasters, government action). Liability limits may apply unless the bailor declares a higher value. 2. Hotelkeepers: Hotelkeepers, who provide food and lodging to the public, are also held to a high standard of care for guest property. However, liability may be limited if guests do not use designated safekeeping services. Generally, hotelkeepers are exempt from liability if loss results from specific causes (e.g., acts of God, public enemies, guest fault). 3. Safe-Deposit Boxes: Renting a safe-deposit box typically creates a bailment, but since both the bank and the customer have keys, the bank’s responsibility may be limited due to lack of knowledge about the contents. However, courts may still hold banks liable if they fail to provide reasonable care. Case Study: Weissman v. City of New York  In Weissman v. City of New York, Weissman stored his kayaks at a city facility that later assured enhanced security. When the facility took exclusive control of the storage keys, a bailment was established, creating a duty of ordinary care. The court ruled that the exculpatory clause in the original agreement, which claimed the city was not responsible for damages, did not cover this new arrangement. Thus, when Weissman’s kayak went missing, the court found the city liable due to negligence in fulfilling its assumed duty of care. Additional Bailor Responsibilities 1. Compensation Rights: If the bailment is for storage or repair, the bailee is entitled to reasonable compensation, often secured by an artisan’s lien. 2. Liability for Defects: Bailors have a duty to disclose known defects, particularly in mutual benefit bailments. If hidden defects cause injury, the bailor may be liable. Commercial lessors are subject to higher standards, including product liability and warranty obligations. Summary In special bailments involving common carriers, hotelkeepers, and safe-deposit boxes, bailees are held to higher standards of care and may face stringent liability for property loss or damage. Courts assess bailee liability based on the terms of bailment, reasonableness of care, and compliance with communicated disclaimers.