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Open MemoGratuitous Bailment

On June 7, 2000, Helen Schulte borrowed a heirloom necklace from Sally Brown to wear on her wedding day. The necklace was valued at approximately $10,000. Two nights before her wedding, Helen wanted to show the necklace to a friend, who was working at a store located in an area known to be a rough part of town. Helen put the necklace on before she got out of the car. While walking to the store she was robbed. The necklace was among the items stolen. Issue:Whether a bailor can recover for property that was stolen while in the possession of the bailee?Answer:Yes. When the bailee has failed to return the property or returns the property in a damaged condition there is a presumption of negligence.-1-Discussion:A bailment is established when there is a delivery of property for some purpose upon contract, expressed or implied, that after purpose has been fulfilled, property shall be returned to the bailor, or otherwise dealt with according to the terms, or kept until he reclaims it. Am. Ambassador Cas. Co. v. Chicago, 205 Ill.App.3d 879, 563 N.E.2d 882, 229 Ill.Dec. 728 (1990); Knapp, Stout & Co. v. McCaffrey, 171 Ill. 107, 52 N.E. 898 (1900); Interlake, Inc. v. Kansas Power & Light Co., 79 Ill.App.3d 679, 398 N.E.2d 945, 34 Ill.Dec. 954 (1979). A bailment for the sole benefit of the bailor is called a gratuitous bailment. Kirby v. Chicago City Bank & Trust Co., 82 Ill.App.3d 1113, 403 N.E.2d 720, 38 Ill.Dec. 489 (1980); Knapp, Stout & Co, 171 Ill. 107, 52 N.E. 898, Miles v. Int'l Hotel Co., 289 Ill. 320, 124 N.E. 599 (1919). In the present case, Sally gave Helen a necklace to use for a specific purpose. Helen accepted the property in good condition. There was no consideration and no benefit for the bailor. Therefore, a gratuitous bailment relationship was established between Sally and Helen.Illinois courts have set forth four elements that most be proven in order to recover under the bailment theory:(1) express or implied agre...

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