However, if I were to pick up a diamond ring in the parking lot of Starbucks and

Question

However, if I were to pick up a diamond ring in the parking lot of Starbucks and attempted to find the true owner, could there be some sort of constructive bailment in that situation? In essence, could the element of delivery of possession be constructively created by the desire of the true owner to have someone pick it up and preserve it until they could be found? If so, then a bailment relationship with take place. If this were the case, what would be the duty, if any, on the part of the bailee to preserve the property?

Explanation / Answer

Constructive bailment:

A bailment imposed by law when the bailee comes into possession of the property by accident or mistake (as by finding it or receiving a mistaken delivery) called also involuntary bailment.

Constructive bailment means an implied bailment which arises when one comes into lawful possession of personal property of another, other than by mutual contract of bailment; such possessor may be treated as a bailee of property by operation of law and may reasonably be referred to as a constructive bailee.

Hence, in this case a bailment relationship will take place.

Duty on the part of the bailee to preserve the property:

The liability of a bailee for loss or damage to goods while they are in the bailee’s possession varies from one type of bailment to another. There are many different general bailment relationships that the courts recognize, and the liability of the bailee differs for each. Regardless of the standard of care fixed for a bailee, if the bailor can establish that the bailee failed to return the goods, or if the returned goods were damaged or destroyed then the onus shifts to the bailee. The bailee must satisfy the court that the standard of care fixed for the particular kind of bailment was maintained and that the loss or damage was not a result of the bailee’s negligence. The reason for placing the onus on the bailee to show that he or she was not negligent is based upon the fact that only the bailee is likely to know the circumstances surrounding the damage to the goods. The bailor during the bailment would not have any knowledge of how the loss or damage came about, and the courts have accordingly recognized this fact. If the bailee is unable to offer any reasonable explanation for the loss, or if the bailee is unable to establish no negligence, then responsibility for the loss is likely to fall on the bailee. Bailees in most commercial bailments, such as warehouse storage or truck transport, are expected to maintain a relatively high standard of care, and for this reason, most of these bailees will attempt to limit their liability in the event of loss.

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