personal property Flashcards
A bailment is defined as
a person’s (the bailor’s) delivery of her goods to another person (the bailee) to hold for a period of time.
For a bailment to occur, the bailee must
(i) physically possess the property with the intent to exercise control over it,
(ii) consent to the bailment (mere custody of the property is insufficient), and
(iii) be aware that the article exists.
The duties of the bailee vary based on
the reason for the bailment.
When a bailor receives the sole benefit from the bailment, the bailee has
1) lesser duty to care for the property
2) and is liable only if he has been grossly negligent.
In a bailment for mutual benefit, the bailee must
take reasonable care of the bailed property.
If the bailed goods have been damaged due to the actions of the bailee, the bailor has the right to
bring a tort or contract action for breach of bailment.
A bailment requires that the bailee
physically possess the property with the intent to exercise control over it, consent to the bailment, and be aware that the property exists.
a company can can be a bailee through
its agents
A bailee may limit its liability as long as
the bailor knows or should know of the limitation and expressly consents to it.
Most courts hold that a claim check is
not a contract between the parties.
any limitation of liability placed on a claim check is not valid unless
it can be proven that the bailor knew or should have known of the limitation.
A bailment generally is
the transfer of possession from one person to another with a specific purpose.
In a bailment, the bailor
relinquishes possession to a bailee for that purpose.
Depending on the mutuality of benefit between the bailor and the bailee
the duty of care owed, and the standard for liability for damage to the bailor’s personal property will vary.
Where the bailment is solely for the benefit of the bailor
the bailee owes a duty of slight diligence, and will only be liable for damage to the property for gross negligence that results in loss/damage.
Where there is mutual benefit between the bailor and the bailee
the bailee owes an ordinary duty of care, and the bailee will be liable for negligent conduct.
Where the bailment is for the sole benefit of the bailee
the standard of care is one of extraordinary care, and the bailee will be liable for slight negligence
Most commercial bailment arrangements, where it’s a professional bailee are
presumptively construed as a mutually beneficial bailment
most courts hold that while a bailment for the sole benefit of the bailor, when the bailee is common carrier, innkeeper, or the like, the standard of care owed is one of
ordinary care
most courts view hospitals in similar light as
common carriers, and innkeepers with respect to personal property, and impose a higher duty of care.
With respect to bailments, complete waiver of liability are
against public policy and will be strictly construed by courts
professional bailee’s are not permitted to waive all liability for loss, unless
the waiver is expressed to the bailor, and the bailor consents to the waiver.
limitations on liability must be so apparent to the bailor that they either
notice the limitation or should have noticed it because of the size and placement of the limitation, so that no reasonable person wouldn’t have noticed it.
professional bailee, a higher standard of care applies when
the bailee exceeds the scope of the bailment as expressed in the terms of the bailment.
if a professional bailee exceeds the scope of the bailment as expressed in the terms of the bailment,
bailee will be strictly liable for all damage when the scope is exceeded.
Personal property is abandoned when
the owner has the full intention to leave the property and give up title and possession to it.
An owner who abandons his property loses
title to that property.
Unowned property is “captured” and becomes a possession when
an individual manifests the intent to own by exercising actual or constructive dominion and control.
Owners who unintentionally lose or misplace their property
do not lose title to their property.
The question of who claims possession against all the world except the true owner may depend on
where the property is found, by whom, and whether a reasonable person would believe that the property was truly lost or merely mislaid.
The finder of lost property is entitled to keep it, unless
the finder was trespassing or the true owner is identified.
When items are found in a highly private location where the public is not invited, then
the owner of that location will retain possessory rights over the find.
Misplaced property is property that
reasonably seems to have been intentionally placed in a particular location, but then appears to have been forgotten.
The finder of misplaced property
does not obtain possession of the property, and the finder’s right to the misplaced property falls after that of the true owner and the owner of the property on which the misplaced item was found.
The finder of misplaced property’s claim to possession is inferior to
that of the original owner and the owner of the property on which the misplaced item was found.
The finder of lost property is only entitled to keep it until
the true owner is identified.
A person taking an instrument, other than a person having rights of a holder in due course, is
subject to a claim of a property or possessory right in the instrument or its proceeds
a person wrongly deprived of personal property may file an action for
detinue, trespass, trover
detinue is an action taken to recover
the actual property or chattel
in order to succeed in a a claim for detinue, the plaintiff must establish
1) plaintiff has a property right recognized by the law in the property
2) plaintiff has an immediate right to possession
3) property is capable of identification
4) property has some value
5) defendant has, or had prior to suit, possession of property
theories to base a claim for damages due to lost personal property against a profesional bailee
1) breach of contract
2) negligence
3) conversion
4) strict liability
breach of contract by bailee where
1) bailor and bailee entered into an enforceable contract for such bailment purpose
2) bailee breached the contract by failing to safeguard bailor’s belongings
3) causing bailor to suffer damages
claim of conversion against a bailee requires
using the property in a way that is not described in the bailment constitutes conversion
conversion is
the unauthorized act over the property of another of such nature as inconsistent with the right of the owner
when conversion by the bailee takes place, a bailor can maintain an action based on trover to
recover the value of property or chattel in addition to damages for lack of possession
bailees are absolutely liable if they:
1) stray from the conditions of the bailment (use of goods for a different purpose than agreed-outside scope of bailment)
2) move the property from an agreed place of storage, or
3) fail to redeliver the goods in the condition in which they were bailed after expressly/impliedly agreeing to insure the goods and failing to do so
absolute liability of the bailee, for conversion, also applies to
non-delivery and mis-delivery- if the bailee delivers to the wrong party
general measure of damages whether in tort or contract is
compensatory damages
compensatory damages are calculated as
compensation to make the victim whole, as if she had not suffered the injury
under a conversion action, the plaintiff may recover damages in the amount of
the full value of the converted property at the time of the conversion
where a bailee unlawful sells the bailors property, and profits considerably above market value of the price of the goods, the bailor/plaintiff should be entitled to
the excess amount the bailee profited as it would be unjust to allow the converting party to be unjustly enriched.
A person who does not have title to goods cannot
pass good title
a person without title to goods can pass good title to a bona fide purchaser in these exceptions:
1) transfers of money and negotiable instruments;
2) where owner intended to transfer title to a wrongdoer, and bona fide purchaser received goods from wrongdoer
3) where bona fide purchaser has relied in good faith upon the true owners representations that the possessor is the owner or has authority to sell.
common law rule of treasure trove
1) where any gold or silver is found concealed, and the owner is unknown.
2) the treasure trove is deemed to belong to the finder as against everyone in the world except the true owner.
where a treasure trove is found under the modern view of constructive possession
the owner of the land or premises possess all that lies beneath the surface of the land
When the property is mislaid, the finder does not
acquire right to possess it
the owner of the property where the mislaid property is found (locus in qou) is entitled to
possess the mislaid property
In a bailment relationship, there is no transfer of
title to the bailee
The bailee possesses the property and is obligated to return or dispose of the property in accordance with
the terms of the bailment.
In order to determine if a bailment relationship exists, the bailee needs to
possess the property by having physical custody over it and an intent to exercise that control over the property.
Additionally, the bailee must
consent to possession, and must have knowledge of the property being in their possession.
finder of lost property is treated as a
1) bailee for the sole benefit of the owner of the lost goods,
2) can only be held liable for failing to exercise slight care.
