Chapter 15

Chapter 15 Special Bailments

By Alicia Koval and Liz Adams

Huber Notes – Chapter 16 2

What is a Bailment?Have you ever been involved in one…

◦ Lend a pen to a friend◦ Borrow some eggs to a neighbor◦ Find a $20 bill◦ Rent a movie or video game

If so….You became a party to a legal relationship called a

bailment.◦ Definition: the transfer of possession of personal property

without the transfer of ownershipBailor—is the party who gives up possession of the

propertyBailee—is the party who accepts possession.

There are several types of mutual-benefit bailments in which the bailee, under common law is held to a higher than normal standard of care for the bailed property. The bailments, sometimes called extraordinary bailments, include common carriers and hotel keepers.

What does a carrier do? A carrier engages in the business of transporting goods or persons or both. A carries of goods is a bailee. Because a carrier charges a fee for such

service, the bailment exists for the mutual benefit of both parties.

Classification of Carriers-1. Private Carriers2. Common Carriers

Private Carriers

Transports goods or persons for a fee, under special circumstances and can refuse any unprofitable transaction

Examples: Moving vans, shipping or delivery services

Their contracts are mutual-benefit bailments and the general law of bailments govern them

Are liable from failure to exercise ordinary care

Common Carriers• Undertakes transporting goods or people, without discrimination to

all those who apply to their services (if it fails to do so, it is liable for damages resulting from such a refusal).

• Common carries are not required to transport • 1. any person which requires unusual attention, such as an

invalid, unless accompanied by a caretaker• 2. Any person with intent to harm or injure the carrier or

passenger• 3. Any passenger that may be offensive to other passengers,

such as an intoxicated person

• Some examples are trains, buses, airplanes, ships and subways• Common carriers are public monopolies and are subject to

regulation to their prices, services, equipment and other operational policies

Liability of Common Carriers of Goods

Common carriers of goods and people are alike because they must serve all that apply, the differ sharply in their liability for loss. Common carriers of goods are insurers of the safety of the transported goods and are liable for loss or damage regardless of fault, unless the carrier can prove the loss was caused by:

1. Acts of God2. Acts of public

authority3.Inherent nature of

the goods4. Acts of the shipperActs of public enemy

These exceptions do not excuse the carrier if the carrier failed to safeguard the goods from harm

http://www.youtube.com/watch?v=K2D3hB278Gc&feature=player_detailpage

Contractual Limitations on Liability- A common carrier may attempt to limit or escape liablitity imposted by law by entering into a contract between the shipper and carrier.

1. A carrier may limit it’s loss by agreement to a specified sum or percentage of value of the goods. A carrier must give the shipper choice of shipping at lower rates subject to the limited liability or at a higher rate without limitation on liability.

2. Most states permit carriers to exempt themselves from liability because of certain named hazards including fire, leakage, breakage, or losses due to riots, strikes and robbers

Bills of Landing

A bill of landing is a contract between a shipper and a carrier and is also a document of title. Transfering a bill of landing may transfer title to the goods described in it to the purchaser.

Two types of bills of landing◦ 1. Straight, or non-neotiable bill of landing◦ 2. Order, or negoriable bills of landing

Duties of Common Carriers of People

1. Duty to provide reasonable accommodations and services2. Duty to provide reasonable protection to it’s passengers

HotelkeepersDuties Include:

◦1. To serve all who apply◦2. To protect a guest’s person◦3. To care for the guest’s property

Hotelkeeper’s LienA hotel keeper has a

lien on the baggage of guests for the value of services rendered. If hotel charges are not paid at a reasonable time, the hotelkeeper may sell the baggage to pay the charges. The lien terminates if the property is returned to the guest, even though the charges are unpaid.