(5) `delivery order` means a set of data containing an order for the delivery of goods to a warehouse, carrier or other person who, in the course of business, issues supporting documents or bill of lading. In several states, when a car owner (Bailor) lends a vehicle to a friend (Bailee) who causes an accident, the owner is responsible for third parties injured in the accident. Damage, destruction and loss are significant transport risks for which the carrier is responsible. The person asserting the right against the carrier depends on the person who bears the risk of loss. The risk of loss rules (discussed in Chapter 18 „Title and Risk of Loss“) determine whether the buyer or seller will be the claimant. But whoever the applicant is, the defendant of the ordinary institution is faced with absolute liability. With five exceptions, which have been discussed in two paragraphs, the common carrier is an insurer of goods and, regardless of the cause of the damage or loss — that is, whether the carrier has been negligent or not — it must make it the owner. This old common law rule is codified in national law, in the addition of The Confederation`s Carmack and in the PEC, section 7-309(1), all of which make the common carrier absolutely liable to the extent that the customary law of the State had previously done so. Although the New York Court of Appeals seized a limitation of liability clause in a contract between an airline and a passenger (summons) (refusal to impose unilateral limitation rules in the event of the death of the passenger due to the negligence of the defendant), this court was never asked to impose a statute of limitations in the case of grossly negligent public carriage of goods.
The various departments of the Appeals Division of the Supreme Court of the State of New York have considered whether gross negligence limits the application of limitations of liability in contracts for the installation, maintenance and monitoring of burglary detection systems and are divided on this issue. Compare [Citation] (application of the limitation period despite gross negligence) and [Citation] (even if gross negligence were found, the claimant`s recovery would be limited by a limitation clause) to [Citation] (the limitation clause cannot limit liability for gross negligence) and [Citation] (finding „no significant difference“ between full exoneration and limitation „to a nominal amount“, the limitation is therefore ineffective). The First Division distinguished between customs clearance provisions and limitation provisions, stating that the latter would be effective even if the former are not applicable due to gross negligence on the part of the contractor. [Quotes].. The other services which have examined the matter have expressed [Citation`s] view that `[a] greements which purport to exempt a party from liability for intentional acts or gross negligence are contrary to public policy and are contrary to public policy`. . It`s possible that you interact with a bailee every day and don`t even realize it. For example, in a dry cleaning, the worker becomes bailed out when you drop off your suit for cleaning.
The owner of a jewelry repair shop is a bailee after you give him a gold chain to repair it. The garage caretaker in the city acts as a deposit after you hand him the keys to your car while you go to a restaurant….