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Legal Issues
Open MemoGratuitous Bailment
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. Whether a bailor can recover for property that was stolen while in the possession of the Yes. When the bailee has failed to return the property or returns the property in a damaged condition there is a presumption of negligence. 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 (1) express or implied agreement to create bailment, (2) delivery of property in good condition, (3) bailee's acceptance of property, and (4) bailee's failure to return property or returning property in Am. Ambassador Cas. Co., 205 Ill.App.3d 879, 563 N.E.2d 882, 229 Ill.Dec. 728; Kirby, 82 Ill.App.3d 1113, 403 N.E.2d 720, 38 Ill.Dec. 489. When the bailee has failed to return the property or returns the property in a damaged condition there is a presumption of negligence. The bailee must provide evidence to support a finding that he was not negligent in maintaining or returning the property. Am. Ambassador Cas. Co., 205 Ill.App.3d 879, 563 N.E.2d 882, 229 Ill.Dec. 728; Kammerer v. Graymont Hotel Corp., 337 Ill.App. 434, 86 N.E.2d 383 (1949); Miles, 289 Ill. 320, 124 N.E. 599. In a gratuitous bailment relationship, the bailee owes the bailor a duty of reasonable care. Am. Ambassador Cas. Co., 205 Ill.App.3d 879, 563 N.E.2d 882, 229 Ill.Dec. 728; Miles, 289 Ill. 320, 124 N.E. 599. In James Coates Motors, Inc. v. Avis Rent-A-Car System, Inc., 19 Ill.App.3d 919, 312 N.E.2d 291, the plaintiff sued defendant to recover the cost of an automobile that was stolen while in defendant's possession. The defendant's evidence to rebutt the presumption of negligence was that it had stored the bailors' property "in a fenced and guarded lot." The court held there was insufficient evidence to support overcoming the presumption of negligence. In Kammerer, 337 Ill.App. 434, 86 N.E.2d 383, plaintiff sought recovery against defendant for money stolen from a safety deposit box that was entrusted to defendant. Defendant alleged that is used due care in maintaining the safety deposit boxes. The safety deposit boxes were kept in an area where anyone had access to them. Therefore, the court held that defendant failed to overcome to presumption of negligence. In Bennett v. O'Brien, 37 Ill. 250 (1865), the plaintiff loaned the defendant a horse to use. The following day the horse became ill and subsequently died. The court held that the horses' death may have been due to a prolonged disease and not from the defendant's negligence. In Apczynski v. Butkiewicz, 140 Ill.App 375 (1908), the plaintiff loaned defendant a horse to haul coal. Upon returning the property, the horse became ill and subsequently died. The horse was four years old, weighed over 800 pounds and had been driven for some time. The court held that the death of the plaintiff's horse was not caused by the actions of the defendant. In the present case, Helen used the necklace for reasons other than the agreed upon terms. She wore it in an area known to be a rough part of town where it was stolen from her. Unlike the Bennett, 37 Ill. 250, and Apczynski, 140 Ill.App 375, cases, where the defendants did not contribute to the loss of the property, this case is most similar to the Kammerer, 337 Ill.App. 434, 86 N.E.2d 383, and James Coates Motors, Inc., 19 Ill.App.3d 919, 312 N.E.2d 291 cases in the respect that there was a failure to exercise reasonable care in maintaining and safeguarding A gratuitous bailment relationship was established between Sally Brown and Helen Schulte. Both parties agreed upon the terms. Helen owed Sally a degree of reasonable care in maintaining and safeguarding Sally's property. Helen breached the agreement by using the property for a reason other than the agreed upon terms. Her negligence led to the loss of the Bibliography:
Word Count: 925
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