What is Special Bailment? A Comprehensive Legal Overview

Definition & Meaning

Special bailment refers to a legal arrangement where a bailee (the person or entity receiving the property) is required to exercise extraordinary care over the property entrusted to them. This type of bailment holds the bailee to a high standard of responsibility, meaning they may be held absolutely liable for any loss or damage to the property, regardless of whether they acted negligently. Common examples of special bailees include common carriers, warehouse companies, and innkeepers.

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Real-world examples

Here are a couple of examples of abatement:

1. A delivery service (common carrier) transports a package. If the package is lost or damaged while in their possession, they are absolutely liable for the loss, unless it was caused by an act of God.

2. A person checks their valuables into a hotel safe provided by an innkeeper. If the innkeeper does not provide a safe, they may be strictly liable for any loss of those valuables (hypothetical example).

State-by-state differences

Examples of state differences (not exhaustive):

State Special Bailment Laws
California Common carriers are strictly liable for loss or damage unless exceptions apply.
New York Innkeepers can limit liability for lost items not stored in a safe.
Texas Warehousemen may limit liability through written agreements with bailors.

This is not a complete list. State laws vary, and users should consult local rules for specific guidance.

Comparison with related terms

Term Definition Key Differences
General Bailment Basic transfer of possession of property without transfer of ownership. Less stringent care required compared to special bailment.
Common Carrier A business that transports goods for the public. Holds absolute liability for loss or damage under special bailment rules.

What to do if this term applies to you

If you find yourself involved in a special bailment situation, consider the following steps:

  • Review any agreements or contracts related to the bailment for terms regarding liability.
  • Document any interactions or incidents related to the property in question.
  • Explore US Legal Forms for templates that can help you draft or review bailment agreements.
  • If the situation is complex or involves significant loss, consult a legal professional for tailored advice.

Quick facts

  • Typical fees: Varies by service provider.
  • Jurisdiction: Varies by state.
  • Possible penalties: Liability for loss or damage to property.

Key takeaways

Frequently asked questions

Special bailment requires a higher standard of care and holds the bailee absolutely liable for loss or damage, while general bailment does not.