Topic > Memorandum - 703

Memorandum Statement of Facts: On June 7, 2000, Helen Schulte borrowed a family 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 worked in a shop located in an area known to be a rough part of town. Helen put the necklace on before getting out of the car. While on her way to the shop she was robbed. The necklace was among the stolen items. Issue: Whether a bailee can recover stolen property while in the bailee's possession? Answer: yes. When the bailee has failed to return the property or returns the property in a damaged condition, negligence is presumed.-1-Discussion: A bailment is established when there is a delivery of property for some purpose under the contract, express or implied, that when the purpose is achieved, the property will be returned to the depositor, or otherwise dealt with according to the terms, or held until he claims it. I 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 NE 898 (1900); Interlake, Inc. v. Kansas Power & Light Co., 79 Ill.App.3d 679, 398 N.E.2d 945, 34 Ill.Dec. 954 (1979). The security for the exclusive benefit of the depositor is called gratuitous security. 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, 52N.E. 898, Miles v. Int'l Hotel Co., 289 Ill. 320, 124 NE 599 (1919). In this 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 to the savior. Therefore, a free bail relationship was established between Sally and Helen. Illinois courts have established four elements that must be most proven to recover under the bailment theory: (1) express or implied agreement to create the bailment, (2) delivery of the property in good condition, (3) acceptance of the property by the bailee and (4) failure of the bailee to return the property or return the property in a damaged condition.Am. Ambassador Cas. Co., 205 Ill.App.3d 879, 563 N.E.2d 882, 229 Ill.Dec. 728; Kirby, 82Ill.App.3d 1113, 403 N.