Business Law. Property Law. Donna drove an automobile into Terry’s garage and re
ID: 451816 • Letter: B
Question
Business Law. Property Law.
Donna drove an automobile into Terry’s garage and requested him to make repairs for which the charge would be $125. Donna, however, never returned to get the automobile. Two months later, Carla saw the automobile in Terry’s garage and claimed it as her own, asserting that it had been stolen from her. Terry told Carla that she could have the automobile if she paid for the repairs and storage, which Carla did. One week later, Molly appeared and proved that the automobile was hers, that it had been stolen from her, and that neither Donna nor Carla had any rights in it. Discuss whether Terry is liable for conversion of the automobile.
Explanation / Answer
This is a case of bailment in which the automobile is being left at Terry's (bailee) garage for repairs. Donna (the bailor) will pay for the repairs to Terry. Hence this is a bailment for the mutual benefit of the bailor and the bailee. The bailor is getting her car repaired and the bailee is getting the payment of $125.
Now, conversion is a common law tort. Terry is not liable for conversion. Firstly, in this case, Terry did not knew that Molly had the clear legal ownership of the automobile. Secondly, Terry is not involved in any kind of wrongful act. The tort of conversion is an intentional exercise of control. Here, Terry never exercised control in an intentional manner.
Hence, Terry is not liable for conversion of the automobile.
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