Innkeepers. Augustine attended a dental seminar held at a Marriott Hotel. The sponsor of the seminar had rented the banquet room in which the seminar was held and had requested the hotel to place a movable coat rack outside the room, in the public
lobby. Augustine placed his coat on the rack before entering the seminar room. When he tried to find the coat at the noon recess, however, he noted that the rack had been moved a distance down the lobby and around a corner, near an exit. To his dismay, his cashmere coat was missing. Claiming that the hotel was liable for the loss, Augustine brought an action against it. Was the hotel a bailee of the coat and thus liable to its owner for the loss? Explain fully.
Innkeepers
The state trial court held that the hotel was not liable to Augustine for the loss of the coat and dismissed the claim. The court stated that no bailor-bailee relationship had come into existence here because Augustine had not entrusted his coat to the hotel. There had been no delivery to the hotel, nor had the hotel, in the eyes of the court, ever been in actual or constructive custody of the coat. Furthermore, Augustine had not even been a guest of the hotel directly. The court likened Augustine's status in relation to the hotel to that of a "wedding guest of individuals who rent banquet facilities from a hotel." The court concluded that "a reasonable man would have wondered about the safety of his coat which he hung on a rack in a public lobby of a hotel, without ascertaining if there were a guard." The court could find no evidence that users of the rack were led to assume that the rack would be guarded, and hence users placed their coats there at their own risk.
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