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What are the duties and liabilities of bailees?

I work in a cloak room at a night club in Sydney. One of the nightclub attendees called our club complaining that at the end of the night her expensive leather jacket was no longer in the cloakroom and that we should compensate her. Do we have to do that? Am I responsible?
Asked in Newcastle - Newcastle and Lake Macquarie, NSW, 31-10-2015
1 Lawyer Answered
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  1. Property
Lawyer Answers (1): Answers from lawyers are general preliminary responses. They are not formal legal advice and cannot taken account of all your circumstances. They do not create a lawyer–client relationship.

Answer by Neha Sharma, Hillsdale 2036 NSW

  • A bailee has the following duties towards a bailor:
    • the duty to take care of the goods; and
    • the duty to return the goods at the end of the bailment.
  • A bailee must observe a standard of care that a reasonable person would take in all the circumstances. In other words the bailee must not act negligently.
  • When deciding the liability of a bailee in relation to lost, damaged or destroyed goods courts generally consider the following aspects:
    • whether the bailment was for reward or if it was gratuitous (free). For example if you gave your phone to your friend because they offered to repair it without cost to you that would be an example of gratuitous bailment whereas leaving your phone with a business knowing that they would invoice you for the repair would be bailment for reward;
    • whether the bailment was for the benefit of one party or both; and
  • whether the bailee had professional skills in relation to the bailment.
  • If you have observed the duties discussed above you are unlikely to be responsible for the loss of property. However it is advisable to discuss your specific circumstances further with a lawyer particularly if this situation affects your employment in any way.
 

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