Fact: D operated a hotel. Hotz was a usual customer of the hotel known by the
management and was a manufacturing jeweler. P delivered her expensive ring to the
hotel so the hotel would deliver the ring to the jeweler. D lost the ring.
Issue: Is the hotel responsible as a bailee for assuring the ring got to who P demanded it
Holding: Affirmed for P
– There was mutual benefit between P and D making a bailment relationship.
Under a bailment relationship if there is negligence on the part of the bailee, he is
responsible to the bailor based on the reasonable man standard
Bailment for benefit of: Liable for:
1. bailor only gross negligence
2. both parties ordinary negligence
3. bailee only slightest neglect
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