Bailments and Gifts Flashcards
1
Q
Bailment
A
- any rightful possession of an item of personal property by someone other than its owner
- usually involves transfer of possession for limited purposes by owner or other interest holder (bailor) to another (bailee)
- if there’s no transfer of possession, no bailment
2
Q
General Rights of Bailee
A
- rest of world interacts w/ bailee as it would w/ true owner -> bailee has possessor’s rights against third parties + some power to create rights
- bailment usually involves some sort of contract -> rights + duties of bailor and bailee have strong contractual element + can be modified by agreement of parties
- bailee also has some power to create rights (apparent authority)
3
Q
Bailee’s Duty of Care
A
Bailee generally has a higher duty of care than the general public, but specific duty depends on context (Justice Story’s treatise):
- reasonable care when both benefit
- higher than that if bailee primarily benefits
- lower than that if bailor primarily benefits
4
Q
Allen v. Hyatt Regency Nashville Hotel
A
- Allen parks in self-serve parking garage -> takes ticket from automatic dispensing machine
- when people leave the garage, they present the ticket to the agent at the gate (computes charge based on duration of stay according to ticket) + raises the gate
- ticket doesn’t identify particular car, just time + charge
- parking garage also has guards
- car gets stolen (ticket agent said didn’t pass through gate, + guards said they heard about potential theft but investigated and didn’t see anything)
5
Q
Bailments and Parking
A
- valet parking typically considered bailment
- open air parking lot w/o attendants not likely bailment
- parking garages like that in Allen tricky
6
Q
Bailment and Numbered Tickets
A
- if ticket has number corresponding to particular item, bailee usually not liable if they give the item to whoever presents the ticket, even if it’s not the owner
7
Q
Bailment and Knowledge
A
- must know what you’re taking possession of in order to have bailment - if you valet park a car w/ diamonds in the trunk, they’d be responsible for the car but not the diamonds
8
Q
Allen v. Hyatt Regency - Decision
A
- court says bailment for hire by implication -> says operator assumes control + custody of cars by limiting access to garage + requiring ticket for exit
- also points out garage is enclosed + indoor w/ attendant at gate + security guards
9
Q
Allen v. Hyatt - Dissent
A
Says element of delivery + sole custody + control lacking -> no bailment b/c:
- owner keeps keys
- attendant not always present (when on break, gate left open + people can drive out)
- ticket automatically dispensed for purpose of calculating charge (doesn’t correspond to particular vehicle)
10
Q
Winkfield- Facts
A
- Winkfield crashes into another ship that’s carrying mail -> the other ship + the mail sink -> Postmaster General (bailee) files claim on behalf of the owners of the lost mails
- lower court denies recovery b/c says Postmaster isn’t actually liable to bailors (they can’t sue him b/c of sovereign immunity-> therefore he has no right to recover)
11
Q
Winkfield - Decision
A
- Court of Appeals reverses lower court’s decision -> wrongdoer must treat bailee as possessor (bailee’s right to recover founded in possession, not based on liability to bailor)
- rejects jus tertii defense (which would’ve said can’t recover b/c property belongs to third-party, ie. bailor)
12
Q
Bailment and Possession
A
- established in Winkfield
- bailee has limited possession - cannot sell the good, transform it (unless contract allows), consume it, etc., BUT bailee has same status as an owner w/ respect to third-parties b/c in possession
13
Q
Gifts - Basic Elements
A
- intent to give (by exercising the power to shift ownership to another)
- delivery (deed of gift also enough)
- acceptance (usually easy to find - suits generally focus on intent + delivery)
14
Q
Irons v. Smallpiece - Facts
A
- father makes verbal gift of two colts to son but colts remain in possession of father
- 6 months later - son says hay very expensive on market + father agrees to sell hay at a lower price to him, but doesn’t provide any hay until another six months later
- when father dies, executrix of his estate receives the colts -> son sues in trover
15
Q
Irons v. Smallpiece - Decision
A
- Court says no delivery, therefore no gift
16
Q
Why do we require delivery for a gift?
A
- way of showing transfer of possession (possession is prima facie evidence of ownership)
17
Q
Why do we require delivery?
A
- way of showing transfer of possession (possession = prima facie evidence of ownership)
18
Q
Gifts Cause Mortis
A
- if about to die or contemplating great risk of death, might give someone something on condition that you die (if you don’t die, the item is still yours)
- requires actual or symbolic delivery of the property in order to be enforced
19
Q
Gift Causa Mortis vs. Wills
A
- gifts causa mortis tend to do an end-run around wills - wills have certain formalities, vs. causa mortis completely informal + lacks the safeguards of a will
- problem is that gifts causa mortis technically supersede wills despite informality
20
Q
Foster v. Reiss - Facts
A
- Ethel has a will that leaves $1 to husband, everything else to children + grandchildren (they were under a separation agreement at the time, so he cannot claim automatic 1/3 of her estate)
- before her operation, she writes a note telling husband where everything is + what he should do with cash + passbooks if she dies -> she falls into coma after operation then dies
- husband gets the note during the operation -> he takes possession of the stuff mentioned
21
Q
Holographic Will
A
- will written in own hand
- doesn’t require witnesses
22
Q
Foster v. Reiss - Procedural Posture
A
- legal action brought by executors + trustees of Ethel’s estate to recover items taken by husband on basis of the letter
23
Q
Foster v. Reiss - Decision and Dissent
A
- majority says no gift b/c no delivery (at minimum, he would’ve had to retrieve the items, bring them to her, + have her okay them - can’t do b/c coma)
- dissent stresses purpose - says this scenario is ridiculous b/c the directions in writing are just as good evidence of the gift as delivery would be
24
Q
Gilbert v. McSpadden
A
- Gilbert + spouse execute deeds to three parcels of land w/ intent of making gift of a parcel to each of their children
- almost four years pass + Gilbert retains possession of the deeds -> goes to visit daughter shortly before Christmas, takes deeds from lockbox w/ apparent intention of delivering them -> he arrives tired + goes to bed, dies overnight
- deeds found in his suitcase -> court says possession of the deeds never passed from him to children, so no gift (property remains part of his estate)
25
Q
Sales of Personal Property vs. Gifts
A
- delivery not required for sales of personal property
- deed is also not required for sales of personal property (deed is not required for gift either, but can be used)
26
Q
Real Property and Requirements for Transfer
A
- deeds are required + must be delivered
